Cryptos: Tether reverses claim of 100% dollar backing, sparking criticism

Tether is back in the headlines after the company updated its terms and conditions to suggest its dollar-pegged digital currency may not be 100% backed by traditional currencies — a claim it had repeatedly stood by in the past.

In a statement on its website, Tether said its coin, known as USDT, is backed by reserves that “may include other assets.”

“Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, ‘reserves’).

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