A serious warning was issued by the Financial Conduct Authority of the United Kingdom this Monday. It was directed to those who have invested in the crypto assets. According to the statement of the authority, the investors are likely to lose all of their investments.
The statement came, following the price of Bitcoin, the premier asset of the industry, by 11 percent. Since the last three months, its value had surged three times. The warning can also be directed towards the cryptocurrency holders who believe in the fact that the cryptocurrency is one of the reliable bases of the financial system that is an innovative one.
Tether And Its Downsides
What stands out in the unstable world of cryptocurrency, is Tether. According to the reports, it comes in the third position among the most widely collected coin in accordance with the value. The second in the line is Ethereum. Tether is a crypto-coin that is stable in the market that revolves around constant speculation. The price that is fixed to the dollar is at of ratio of 1-to-1.
The best advantage that Tether provides a token that stands to be a widely recognized one. And these are used for the facilitation of transactions between the cryptocurrencies of varied forms. It also helps in liquidity. Tether is known to act as a dollar of the digital world that is used everywhere.
However, there are downsides to the company as well. Tether is facing a number of lawsuits and of those state that it is a part of the largest fraud in the world. According to reports, there were links found between Tether and Bitcoin back in 2017. It printed its currency in a way that led to the rise in Bitcoin. However, this was unsuccessful as Bitcoin ended up losing about 45% value within five days.
It is to be noted that whatever the case, the history of Tether is full of negativities like the involvement of certain criminals, some unsolved hacks, etc.