The need for transparency and openness between Blockchain technology developers and users within the Blockchain space continues to top many analysts’ demands. Many analysts feel that the Blockchain space’s decentralized nature means that blockchain networks need always to ensure that their users and investors understand each of the components of their relationship. However, Users and investors of Tether(USDT) have continued to make audit request from Tether Holdings- the company behind the project. Alternatively, in a new report yesterday, they have confirmed that the project’s offerings are backed by Cayman Island-based insurance firm- Moore Cayman.
Tether users demand an audit, not a report
In the report by the U.S dollar-backed cryptocurrency developers, they have now informed their users and investors that Moore Cayman fully insures the stablecoin project. The report’s details show that, as of the beginning of March 2021, the company’s gross asset is $35 billion, with gross liabilities pegged at $35.15 million. In the report, the Tether developers also assured the public that they would continue to show transparency in all their dealings as they continue to grow their earnings. Unfortunately, despite its recent commitment to transparency, the demands of the Tether community are still ignored.
According to many analysts, many of the cryptocurrency users are unsure if they are backed by the U.S dollar. After the report yesterday, many USDT holders took to social media to demand proper auditing, as there are concerns over just a mere report from the company. Many of these users have demand the technology company to employ the services of proper auditing firms to carry out a proper audit of the company, believing that a testament is not enough. The idea behind an audit of a firm is that it will show the public and its stakeholders the current financial stance of the company in full detail.
Tether users do not have enough faith in the project
Many Tether users’ request for a proper audit was fuelled by a ransomware attack on the Blockchain network earlier in February. The network was attacked by a group of hackers, who demanded 500 Bitcoins as a ransom payment. The alleged attackers believed that they possess some documents against the company, which will show the public their fraudulent activities and dampen their image in society. The alleged hackers gave the developer a deadline of March 1st to pay up or face the consequences.
However, Tether developers declined to make such payments, as they had the matter in control. The case was later resolved, but the Tether community is unsure of the project. However, after their statement yesterday, Tether has promised that they will continue to provide more available reports concerning the project’s activities. Unfortunately, suppose the project’s developers refused to conduct a proper audit, as requested by its users. They will be set to lose many investors, as they are not satisfied with the report.