Stablecoin Tether has witnessed its fair share of controversies pertaining to price manipulation, with possessing $1.8 billion as reserve, among others. However, there was also good news in the offing, when the stablecoin joined forces with Deltec Bank.
Now, Tether has announced that it will be reviving long-overdue features: of redeeming Tether to fiat as well as customer verification. In a blogpost the coin said, “Due to the unexpected rush of new cryptocurrency traders over the last year, Tether grew at an unpredicted rate, quickly making the initial model (enabling direct redemption of Tether to fiat through its native platform) unsustainable. In this environment, it made sense to take the stress off growing pains by flexing the existing model to harness the established infrastructure and security of Bitfinex, which was built to withstand a much larger volume of customers. Those wishing to redeem could do so 1:1 via Bitfinex with whom we had a business to business relationship.”
It added that due to its relationship with Deltec, Tether would soon be able to “return to its original vision of having a wallet for creating and redeeming directly on its own platform without having to rely on a third party.”
To make things easier for customers, Tether said all accounts would have new minimal issuance and redemption requirements equal to 100,000 USD and $100,000 USD₮, respectively.
Earlier Crypto-News India had reported that Tether and Bitfinex are under scrutiny amid the plummeting bitcoin prices. Federal prosecutors in the United States of America are investigating bitcoin, Tether and the cryptocurrency exchange Bitfinex, to examine if there may have been price manipulation.
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