Renowned economist and Bitcoin critic Peter Schiff has come for the USDT issuer Tether. He accused the crypto firm of manipulation following its recent 7,629 BTC purchase.
Peter Schiff Accuses Tether Of Manipulation
In reaction to Tether’s recent Bitcoin purchase, Peter Schiff accused the USDT issuer of “more manipulation.” He stated that the crypto firm simply creates USDT out of “thin air” and uses it to buy Bitcoin.
The renowned economist further described this USDT minting as Tether’s version of quantitative easing (QE). He added that this will not end well for Tether or Bitcoin.
USDT issuer Tether recently added 7,629 BTC to its reserve, which sparked Schiff’s remarks. The crypto firm now holds $7.68 billion worth of Bitcoin.
Meanwhile, Schiff’s accusation that USDT was created out of thin air is unfounded, as the stablecoin is backed by the USD and other Tether reserve assets. The firm also releases independent audit reports of its reserves.
However, Peter Schiff still seems to be convinced that there is some sort of manipulation involved in the USDT minting. In another X post, he stated that by definition, the USDT Tether uses to buy is not backed by anything other then the BTC it acquires as a result of the purchase.
It is worth mentioning that Schiff also criticized MicroStrategy’s $209 million Bitcoin purchase. He stated that the software company is no longer buying enough BTC to keep the price rising.
Adding To The Tether FUD
Peter Schiff’s remarks about Tether add to the FUD surrounding the stablecoin issuer. There have been many ill comments about the crypto firm’s imminent exit from the European Union (EU) region.
Amid this development, USDT’s market cap has slumped by $2 billion. Tether’s CEO, Pablo Ardoino, has addressed the FUD, stating that competitors are just trying to make market participants believe things that don’t exist.
In a recent X post, Arduino stated that the paid shill armies that have kept attacking Tether for years are the same that keep attacking Bitcoin to promote some alternative “useless tech.” He added that Bitcoin and Tether are standing in their way but stated that they are unstoppable together.
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