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Peter Brandt compares Tether with the “Nigerian jewel”

April 30, 2020

The renowned merchant Peter Brandt compared the storage of Tether (USDT) with the risk of storing the “Nigerian jewel”.

In a Tweet Today, Brandt aimed at the controversial stable coin and called the people “stupid” because they had kept Tether “even overnight”. “It’s a joke when people condemn the dollar as Fiat and still keep Tether,” he said.

To be fair to Nigeria, its currency is actually called “Naira”, not a gem, and inflation is 18% there, which is not a good thing, but not terrible compared to hyperinflationary countries like Venezuela.

Peter Brandt compares Tether with the “Nigerian jewel”Peter Brandt compares Tether with the “Nigerian jewel”

Brandt’s argument seems to be that Tether does not have a good reputation and is not well regulated, which makes it a risky asset where money can be parked:

“Seat belts … sleep well. Your assets will be linked overnight to a number of exchanges that are not regulated and you know little about their financial strength. LOL with it. “

He also warned investors that holding funds in Tether would prevent them from being investigated by the Internal Revenue Service. or have to pay taxes on their holdings:

“Clarification point for American citizens. If you sell BTC or other cryptocurrencies through Tether, you CANNOT escape the IRS. The trigger for the IRS is the number of cryptocurrencies sold / traded. Once you have reached this level (and this level will change) Years to $ 1,000), you will be reported through an exchange. “

A story of controversy

Brandt is far from Tether’s only critic. In 2018 An investigation showed that the tether problem was a form of market manipulation that had brought the price hike to the highest level ever. The investigation was cited in several lawsuits against the company. However, recent research contradicted the idea.

Nevertheless Many people believe that there is a connection between the tether problem and BTC price increases. Reports based on Whalebot Alerts reported that Tether spent more than $ 1 billion in new Tether coins just before a surge in which Bitcoin made up most of the losses in March. And the day before, Whalebot Alerts also reported that an unknown wallet had transferred $ 50 million to Binance just minutes before the increase from $ 400 to nearly $ 8,800.

The tweet reads:

For years, however, Tether claimed to have 100% of its reserves in USD During an experiment, it was shown that Tether’s reserves can only be 74%.. Tether was not the subject of a public trial, and his relationship with his former examiner was dissolved in 2018.

Brandt’s reaction

Brandt does not back up on his avane. Yesterday you referred to Bitcoin traders as “amateurs” because of their alleged short-sighted views of the currency’s price movement:

The tweet says:

Besides that, Brandt claimed two days earlier that he would no longer tweet about Bitcoin. “I will no longer post tweets about BTC. Too many disrespectful trolls,” he said.

It seems be who finds the topic too interesting to stay away.

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