Crypto Cries Foul In Wake of Tether's Dollar Token Report

That's what some are wondering after Tether, the makers of the dollar-pegged crypto asset, USDT, made an announcement Wednesday insisting that its tokens - valued at $2.6 billion - are fully-backed by real cash.

For months, Tether has fought accusations that it is falsely issuing tokens without actually having the dollar reserves to back them.

Some background on Tether: Unlike bitcoin or ethereum, which does not have traditional assets affirming its value, USDT can boast a relatively secure store of value being pegged to the dollar.

Investors view tether as less of an investment and more of a tool to move funds from one cryptocurrency exchange to another.

The problem is that if allegations over tether not having the funds to back their tokens are indeed true, there's less money than is currently being depicted in the cryptocurrency markets and in fact more reason to believe cryptocurrency prices are inflated.

An audit, which Tether refuses to provide, and which companies large and small undertake on a regular basis, would answer that question.

Not to mention that tether is a cryptocurrency closely linked to cryptocurrency exchange Bitfinex, which, like tether, has a history riddled with hacks, lost funds and a resistance to greater transparency.

The worry over the increased impact of tether and, by consequence, Bitfinex, has caused outcry on social media by notable voices such as the creator of litecoin Charlie Lee, and professor at NYU Stern School of Business, Nouriel Roubini.

Tether seems well aware of the concerns voiced on social media and recent reports.

The company wrote in a blog post on their official webpage that their efforts in "Transparency" are far from over and that they will continue with "Steps aimed at opening up Tether to the general public and clearing away any uncertainty that may exist."