Crypto Bull Mike Novogratz Criticizes Tether Stating It didn’t do a Good Job on Transparency
Stablecoins have found a new supporter in the form of billionaire investor and entrepreneur, as well as one of the most vocal cryptocurrency advocates Mike Novogratz.
Speaking in an interview, Novogratz, whose Galaxy Digital investment company is active in the cryptocurrency space, said he favored alternative stablecoins pegged to the U.S. dollar with known U.S. banking connections.
Despite being positive on the general outlook for stable coins, Novogratz found fault with the world’s largest stable coin and eighth largest cryptocurrency by market capitalization, Tether USDT.
According to Mike Novogratz, Tether’s lack of transparency is the leading reason behind the stablecoin’s recent troubles, Bloomberg reports.
“I think Tether didn’t do a great job in terms of creating transparency,” Novogratz said.
Being a stablecoin, Tether’s price has remained fixed at $1. Recently, however, the coin has fluctuated in its price, even dropping as low as $0.91, leading to investors losing faith in the token as questions arise regarding the legitimacy of tether’s claim that each coin is backed by a dollar in its bank account.
Novogratz stated that he believed Tether was responsible for the negative press generated around the coin, by failing to institute a policy of transparency early on which has continually hurt the currency’s brand perception.
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