Novogratz Says Tether Hurt by Its Lack of Transparency

Cryptocurrency advocate and billionaire investor Mike Novogratz says Tether's recent troubles are its own fault, and that a lack of transparency is mainly to blame for investors losing faith in the stablecoin.

Billionaire investor Mike Novogratz, one of the best-known advocates of cryptocurrencies, blamed controversial "Stable coin" Tether for its own recent woes https://t.

In June of this year appears to show that they could back every Tether in circulation with one U.S. dollar.

"Despite speculation, we have consistently stated that tether is backed by USD reserves at or exceeding te tethers in circulation at a given moment, and we're glad to have independent verification of this so [as to] answer some of the questions posed by the public."

Despite that, Novogratz thinks the company hasn't done a sufficient enough of a job at keeping their business practices transparent, noting during a conference in Frankfurt, Germany that Tether operates off-shore.

For its part, Tether seems to be working on providing more transparency to its customers.

To show how much Tether is holding in USD and EU for holders of Tether to compare with the amount of USDT in circulation.

Tether told the Independent in June:."We are planning to build on this report moving forward and, despite the challenges of applying current accounting and assurance standards to cryptocurrency clients, we continue to discuss these issues with potential audit partners."

"The above confirmation of bank and Tether balances should not be construed as the results of an audit and were not conducted in accordance with Generally Accepted Auditing Standards."

Id like to put context to these quotes as the last thing I want to do is spread FUD. I said I thought tether has a dollar for every tether and that we actively traded it.