Peter Brandt, Willy Woo Issue Dire Warning On Tether (USDT)

Well-known investor and crypto analyst Peter Brant has expressed serious concerns about the future of Tether (USDT), the crypto market’s main stablecoin. The discussion was sparked by a post from the non-profit organization Consumers Research, which highlighted several allegations against Tether.

Peter Brant of Tether

Consumers Research criticized Tether for allegedly misleading the market about its US dollar backing and for receiving a high-risk rating from S&P. It also highlighted Tether’s refusal to undergo a rigorous independent financial audit. Brandt, who is known for his critical stance against X, cited Consumers Research’s post to express his opinion.

“That’s an interesting perspective,” Brandt said. “I’ve argued for years that Tether is headed for eventual doom, and I completely agree. The US Dollar will eventually meet its demise, and I expect Tether will experience the same in the coming years.”

Moreover, Brandt’s allegations highlight long-standing concerns about Tether’s transparency and financial stability. Tether has faced scrutiny and legal challenges over its claim that each USDT is backed 1:1 by the US dollar held in reserves, leading critics to argue that the company hasn’t provided enough evidence to substantiate these claims, fueling market skepticism.

Bitcoin maximalist Willy Woo added fuel to the debate by refuting Brandt’s dire prediction. Woo pointed out that Tether has defied predictions of its demise over the past decade. “Tether was doomed every year of its 10 years of operation,” he said. “It’s at least as old as ETH, BTC is 15 years old, and both got to a stable size in about a decade.”

Woo further suggested that Tether’s longevity and adaptability could help it survive major market changes. He further argued that Tether is evolving into an over-collateralized asset that could outperform traditional low-yielding securities such as government bonds. Woo further highlighted the possibility that Tether could pivot into a Bitcoin-like asset.

And gold. He believes such a move could bring greater stability and value retention.

Also read: Circle founder Jeremy Allaire makes big stablecoin predictions

Allegations of illegal trading

Earlier this week, Consumers Research Executive Director Will Hild noted that Russia and other countries are using the stablecoin to circumvent sanctions, following previous allegations made against Tether in the aftermath of the Hamas attack on Israel on October 7. Additionally, the Israeli government recently froze around 100 Binance accounts, and Tether froze $800,000 worth of assets.

In X’s post, Hild said, “Russia has used Tether to evade financial sanctions, as have countries like Venezuela, and it appears to be used by human traffickers… Last year, Tether was linked to nearly $20 billion in illicit transactions. Tether has also been used by Hamas, Al Qaeda, ISIS and others, and is known to be involved in millions of terrorist-related financial transactions.”

Hild further suggested that Tether may be involved in criminal activity, drawing parallels with the downfall of FTX, and furthermore, cryptocurrencies continue to be linked to illicit financial activity, which is why authorities are trying to curb such activity.

Related article: Tether faces new terrorism and illegal finance allegations

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