Legendary Analyst Warns for That Altcoin: It’s Heading for Disaster!

Long-standing doubts about the popular altcoin and stablecoin Tether (USDT) are reigniting. Experienced trader and well-known market expert Peter Brandt accused the company behind Tether of corruption and suggested that it could be the next FTX incident. Here are the details…

Analyst Brandt made a statement about the well-known altcoin and stablecoin USDT

Amid corruption accusations against the issuer of Tether (USDT) and growing questions about whether it will be the next FTX, veteran trader and renowned market expert Peter Brandt has shared his opinion that the well-known stablecoin may be headed for disaster. Brandt’s concerns echo those of Consumers’ Research, a nonprofit organization dedicated to protecting consumers. The Consumer Protection Organization launched a campaign targeting Tether in early June, claiming that USDT poses a risk to consumers.

In a post published on June 19, Brandt stated that he had been arguing for years that Tether was “eventually heading towards a disaster” and that the US dollar would “end” years after Tether. “Tether is tied to corruption,” Consumer Watchdog posted on a giant digital billboard in New York’s Times Square. Wild Hild, the CEO of the organization, drew attention to the suspicious contacts between Tether and FTX in the press release. Hilde said:

We shed light on Tether’s questionable business practices, including its decade-long refusal to undergo independent checks and its routine use by terrorists and human/drug traffickers. Given these cautionary signs, we are concerned about the possibility of Tether becoming the next FTX. Consumers should be suspicious of any stablecoin that refuses to certify their holdings in a real form.

Brandt: ‘There should be no Tether in the future’

More recently, a report by Consumer Watchdog, which also cited Brandt’s post, said “the future may be about stablecoins, but it shouldn’t include Tether.” The report also included accusations that Tether “misled the market about its US dollar basis, received a 4/5 high risk rating from S&P, and refused to undergo strict independent financial control.” Despite all these arguments and the Consumer Watchdog’s million-dollar campaign, Tether has so far managed to remain tied to the US dollar. However, it should not be forgotten that stablecoins have faced similar crises in the past.

For example, as Kriptokoin.com reported, the collapse of the algorithmic stablecoin LUNA/UST plunged the cryptocurrency market into a long-term calm. At the same time, Circle’s USD Coin (USDC) also lost value due to its $3.3 billion exposure to the failed Silicon Valley Bank (SVB) in March 2023. As a result, experienced investors and consumer advocacy organizations are raising questions about the future of Tether and USDT. It is critical that Tether respond to these allegations and act transparently in terms of regaining investors’ trust. Additionally, regulatory authorities may need to take a more active role for the future of the stablecoin market.