Peter Schiff, a Bitcoin critic, has accused USDT issuer Tether of manipulation in the wake of its most recent BTC purchase.
Peter Schiff, a renowned economist and Bitcoin critic, has expressed his disapproval of Tether, the issuer of USDT. He accused the crypto firm of manipulation after its most recent acquisition of 7,629 BTC.
Tether is accused of manipulation by Peter Schiff
Peter Schiff accused the USDT issuer of “more manipulation” in response to Tether’s recent Bitcoin purchase. He asserted that the crypto firm generates USDT from “thin air” and employs it to acquire Bitcoin.
The esteemed economist also characterized this USDT minting as Tether’s version of quantitative easing (QE). He further stated that this would not result in a positive outcome for Bitcoin or Tether.
Schiff’s remarks were precipitated by the recent addition of 7,629 BTC to the reserve of USDT issuer Tether. The crypto firm currently possesses Bitcoin, valued at $7.68 billion.
Simultaneously, Schiff’s assertion that USDT was generated from thin air is unfounded, as the USD and other Tether reserve assets back the stablecoin. Additionally, the organization furnishes independent audit reports regarding its reserves.
However, Peter Schiff maintains his conviction that the USDT minting is subject to some form of manipulation. In a separate X post, he stated that the USDT Tether purchases are not backed by anything other than the BTC it acquires due to the transaction, as its definition dictates.
Schiff’s criticism of MicroStrategy’s $209 million Bitcoin acquisition is also noteworthy. He stated that the software company is no longer purchasing an adequate quantity of Bitcoin to sustain the price increase.
Enriching the Tether FUD
Peter Schiff’s comments regarding Tether further exacerbate the FUD surrounding the stablecoin issuer. The crypto firm’s imminent departure from the European Union (EU) has been the subject of numerous negative comments.
Due to this development, USDT’s market capitalization has declined by $2 billion. Pablo Ardoino, the CEO of Tether, has responded to the FUD by asserting that competitors are merely attempting to deceive market participants into believing in things that do not exist.
Arduino recently stated in a recent X post that the paid shill armies that have been attacking Tether for years are the same ones that continue to attack Bitcoin to promote some alternative “useless tech.” He also mentioned that Bitcoin and Tether impede their progress, but he insisted they are invincible when working together.
