What is Tether?
Most Comprehensive Real Story
Tether tools have lost their reputation and are scarely to show high performance in the future

Nowadays Tether project passes not so good stage of own development. The reason of all is a number of negative factors like poor-quality audits, claims of the regulator, not positive publications in the media criticizing this coin.
Tether company was again in the center of public attention after making changes inside conditions on company's website, where were announced that USDT stablecoin with reference to US dollar may not be provided with 100% fiat reserves:
Each Tether is always 100% secured by our reserves, which include the traditional currency or its equivalent, and may from time to time include other assets and receivables for loans provided to third parties by Tether, which may include subsidiaries (collectively referred to as "reserves").

Defective audit generates fake reserves

The latest audit of Tether's financial statements was conducted by the law firm «Freeh Sporkin & Sullivan» in 2018, publishing a document to confirm the availability of Tether's foreign exchange reserves. But «Freeh Sporkin & Sullivan» is not an auditing company and it is unknown which audit methods were used. In addition, the document itself states that the information in it should not be interpreted as the result of a formal audit.
Last year in October, Tether had to look for another bank after the termination of cooperation with Noble Bank, which, according to a BitMEX Research, was the company's main reserve bank. In November, Tether provided confirmation of banking transactions with Deltec Bank. After that, in December 2018, Bloomberg analysts said that Tether has sufficient funds to fully and timely fulfill its obligations to investors.
All this time, the USDT has struggled to keep a link to the US dollar, because due to disturbing news, the cost of stablecoin has dropped below $1.
It is worth to say that Tether is not only one stablecoin which fought for the preservation of parity 1: 1. Stablecoin Dai (DAI) also dropped below $ 1 on various exchanges, prompting developers to increase commissions in order to maintain the peg.
With that changes Tether steps on a "slippery slope", moving to a partial reservation policy: the wording of the press release "100% security" ... "may also include loans receivables" - a clear transition to partial redundancy; Tether's comment that their reserves may also include other assets opens up the possibility of providing almost anything with a controversial assessment.
Tether&Bitfinex affilation contributed to the cover crypto assets

Over the past two years lot of questions have arisen around the Tether connection with the Bitfinex, cryptocurrency exchange. The CEO of both companies is J.L. van der Velde. It has been repeatedly said that Bitfinex has been issuing Tether tokens in the past few years.
Initially, representatives of Tether Limited denied that they were related to the Bitfinex exchange. However, according to a large-scale investigation of Paradise Papers, concerning the activities of offshore companies, in 2014, Bitfinex Chief Strategy Officer Phil Potter, together with the Chief Financial Officer of the exchange, Giancarlo Devasini, founded Tether Limited in the British Virgin Islands. And the head of Bitfinex, Jan Ludovicus van der Velde, took a leadership position, and is still the CEO of Tether Limited.
In this regard, many members of crypto community began to accuse Tether Limited and Bitfinex in collusion. The question is not even that Tether's cryptocurrency may have been used to artificially raise the rate of Bitcoin - each time Tether token emissions were followed by a jump in the price of Bitcoin
«After 20 million USDT arrived on the cryptics, orders were opened to Bitfinex in less than half an hour for the purchase of Bitcoin totaling $ 25 million».
The main mystery lies elsewhere: There are doubts whether digital tokens called Tether are really secured with an amount of $ 1.6 billion, as the company declares. In response to this, in September 2017, both companies provided reporting documentation in an attempt to prove that Tether cryptocurrency was provided by fiat currencies.
Later, the New York Times published own investigation, in which independent lawyer Lewis Cohen, noted that even though the document was carefully prepared, it does not at all prove the security of the token with the US dollar. He noted that there are many reasons why it is not necessary to deal with Tether. The authors of the financial publication FT Alphaville also came to a similar opinion, noted that the presented document cannot be considered an audit.
Oguz Serdar, who tried to exchange USD 1 million for US dollars, was refused by the company.
"Due to current banking difficulties, we can process requests only for trusted corporate customers," Bitfinex answer to Serdar.
Since the company claims that its currency is supported by bank reserves, Serdar tried to find out which banks Tether works with, but he did not receive a clear answer on this matter. Attempting to conduct a transaction with these partners Tether also did not produce results. As a result, Serdar traded USDT for bitcoins.
In recent months, it has become quite clear that Tether is in fact not provided with real dollars, or at least does not even come close to the full amount. There are currently just under $ 1.7 billion, possibly a ghostly Tether, representing fake dollars floating on the stock exchanges. It is highly unlikely that a company without formal banking relationships has cash reserves of $ 1.7 billion. Moreover, they have "printed" another $ 200 million over the past few weeks. These new Tethers were often used for margin trading on Bitfinex to raise the price of BTC, but each time the effect was less and less…..
Early or later, this level of documentary support should have generated some kind of reaction.
What happened later: at the end of April the Prosecutor General's Office in New York charged Bitfinex with the loss of $ 850 million, hiding this fact, using the means of its affiliate stablecoin Tether to cover the damage.
Later it turned out that these funds were frozen in the bank accounts of the Panamanian processing Crypto Capital in the UK, Poland, Portugal and the USA. Nevertheless, the exchange assured users that it is actively cooperating with the relevant departments to restore access to money.
The New York State Supreme Court ordered Bitfinex to provide the authorities with documents on the loss of access to funds of $ 850 million, and also upheld a prescription that prevents Tether from using its reserves for lending to the stock exchange and other investment activities.
Bitfinex's Bitcoin attorneys filed a motion to cancel the court order during the proceedings, but the New York State Attorney's Office, represented by Letitia James, appealed to the State Supreme Court to reject the request. The ministry stressed that the operator of the trading platform did not provide the authorities with documents confirming its financial stability and revealing the essence of the liquidity problems.
The prosecutor's office continues to insist that fraud is seen in the actions of Bitfinex, because the exchange has hidden the "loss" of client and corporate funds and the subsequent coverage of this hole at the expense of Tether's reserves, thereby misleading market participants, its own users and USDT holders.
Without waiting for a court decision, Bitfinex successfully uses a negative news feed to conduct an initial exchange offering (IEO) of LEO tokens. As a result, the exchange managed to raise $ 1 billion during IEO.

So is it possible to buy Tether or not?

Even if the project achieves the removal of all the charges and shows a positive balance of the reserve fund, their coin is still not suitable for making both conversion operations and trading on cryptocurrency exchanges. At any moment, the seemingly "seemingly hard pegging" to the US dollar may not be so tough, which would entail a serious decline in the value of this stablecoin.
In the modern digital world there are many projects that provide similar opportunities with a high level of involvement of regulators, transparency of reporting and high quality of audits.

For the European part of the audience should look at two projects:
• Blockchain startup Circle, which released stablecoin USD Coin (USDC).
• Stasis crypto platform, which issued crypto-euro (EURS). It greatly simplifies the acquisition of any crypto assets in the EU.
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