Another exchange has delisted Tether amidst an ongoing controversy regarding its dollar reserves.
Singapore-based Digifinex is a relatively new exchange operating since last year and focused on the Chinese market. It features low trading fees and no charges for depositing or withdrawing cryptocurrency.
— Digifinex Exchange (@digifinex) September 15, 2018
The decision to delist Tether (USDT) coincides with the exchange adding TrustToken’s fellow stablecoin TrueUSD (TUSD), which is fully collateralized. Throughout this year a number of questions have arisen regarding Tether’s auditing and compliance practices. Some believe the stablecoin does not hold fiat dollar reserves equal to the amount of issued Tether tokens and allegations of market manipulation have also been made.
However, Tether denies the claims but has been unable to provide independently audited proof to back up its defense. Despite this, Tether remains one of the most widely used dollar-pegged cryptocurrencies available. Critics, including Berkeley professor Barry Eichengreen, have debated whether Tether’s business model would hold up in the event of a financial crisis like that of 2008.
Others believe that stablecoins should not exist at all as they are more like fiat currency than cryptocurrency and so negate the original purpose of decentralized digital assets.
Digifinex co-founder Kiana Shek says the company had been “looking for ways to get rid of USDT” for a while.