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Is Tether a Ticking Time Bomb? By DailyCoin

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Is Tether a Ticking Time Bomb? By DailyCoin



Is Tether a Ticking Time Bomb?
  • Tether (USDT) reaches $50 billion in value.
  • USDT has been criticized due to a lack of transparency.
  • Tether released the Consolidated Reserves Report that backs up all USDT.
  • The rapid growth of USDT is accredited to its diversification across multiple blockchains.

Tether reached a total value of $50 billion. However, if it is not really backed up, the coin can drop the entirety of the crypto market cap below 1 trillion immediately.

Tether, the issuer of USDT, has been criticized throughout its history due to its lack of transparency. That being the case, through a settlement with the New York Attorney General’s office, it was obliged to disclose how its stablecoin is backed in greater detail.

This investigation was conducted throughout the course of 22 months, where they looked at bank accounts and funding. In the end, Tether was actually fined $18.5 million for mixing funds with Bitfinex and the investigation was settled. The investigation managed to confirm that Tether had no access to banking, held no reserves, and wasn’t backed by the dollar while covering up massive losses.

There have been numerous assumptions throughout its history that it is a ticking time bomb, the most notable one being from the co-founder of (ETH), Vitalik Buterin, who argued that like Ethereum, (BTC) had its own potential to explode, citing Tether as another example.

On the Flipside

  • Tether has released the consolidated reserves report that backs up all USDT.
  • The report has been verified by independent accountants Moore, and clarifies that Tether is fully backed.
  • This report states that Tether holds consolidated assets that amount to $41 billion as of the 31st of March 2021.
  • These assets exceed its consolidated liabilities, and the company’s reserves that are held for its digital assets which are issued exceed the amount which is required to redeem the digital asset tokens themselves.

In any case, the report from Moore is a big step forward when it comes to Tether, which has been infamous and criticized for not holding any monetary value while continuously printing out Tether (USDT).

The rapid growth of the USDT has been credited due to its diversification across multiple blockchains. Throughout its history, it started out as being only an ERC-20 token, and when it shifted to the TRON network, it saw exponential growth. The TRON-backed USDT managed to surpass the supply of the native ERC-20 token due to the fact that it has lower transaction fees.

However, with all of this said, could Tether still be a ticking time bomb? If it is truly backed, for how long can Tether and Bitfinex pick up the pace? Only time will tell if Tether ends up being just another ticking time bomb, which once exploded could potentially reduce the value of the token to nothing.

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Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Palestinian rocket fire, Israeli strikes in Gaza run into second day By Reuters

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Palestinian rocket fire, Israeli strikes in Gaza run into second day By Reuters



© Reuters. Flames and smoke rise during Israeli air strikes amid a flare-up of Israel-Palestinian violence, in the southern Gaza Strip May 11, 2021. REUTERS/Ibraheem Abu Mustafa

GAZA/JERUSALEM (Reuters) – Palestinians fired uninterrupted barrages of rockets into Israel, as its military pounded Gaza with air strikes through the early hours of Tuesday, in a dramatic escalation of clashes in Jerusalem.

Explosions shook buildings throughout Gaza and rocket sirens sent Israelis in many southern towns scurrying for shelter overnight. Two Palestinians were killed and more than 100 wounded in air strikes, Palestinian officials said.

Six Israelis were wounded by a rocket, medics said.

Nine children were among the 20 dead in Gaza on Monday and scores of rockets were launched into Israel, many that were intercepted by missile defences.

The events were unleashed by Gaza militants firing on the Jerusalem area for the first time since a 2014 war, crossing what Israeli Prime Minister Benjamin Netanyahu called a “red line”.

The upsurge in violence came as Israel celebrated “Jerusalem Day”, marking its capture of East Jerusalem in the 1967 Arab-Israeli war.

The escalation began with confrontations at Al-Aqsa Mosque in the heart of the walled Old City on the compound known to Jews as Temple Mount and to Muslims as the Noble Sanctuary – the most sensitive site in the Israel-Palestinian conflict.

The Palestine Red Crescent Society said more than 300 Palestinians were injured in clashes with Israeli police, who fired rubber bullets, stun grenades and tear gas in the compound. Police said 21 officers were hurt in the skirmishes.

Although the trouble died down after a few hours, there were other focal points of tension, such as the Sheikh Jarrah neighbourhood of East Jerusalem just north of the Old City, where several Palestinian families face eviction from homes claimed by Jewish settlers in a long-running legal case.

Hamas, the Islamist militant group that controls Gaza, set an evening deadline for Israel to remove its police from Al-Aqsa and Sheikh Jarrah. When it expired, sirens wailed in Jerusalem and rockets pounded the city’s outskirts.

Israel views all of Jerusalem as its capital, including the eastern part annexed after the 1967 war in a move that has not secured international recognition.

Palestinians want East Jerusalem for the capital of a state they seek in Gaza and the Israeli-occupied West Bank.

Hamas and the smaller Islamic Jihad militant group claimed responsibility for the rocket fire on Jerusalem.

The Israeli military said it struck targets that included militant operatives, attack tunnels and the home of a Hamas battalion commander.

Of the 20 Palestinians killed on Monday, seven, including three children, were family members who died in an explosion in the town of Beit Hanoun, though it was unclear if it had been cause by an Israeli strike or a Palestinian rocket that had fallen short.

An Israeli military spokesman said about a third of the Palestinian rockets fired had fallen short and caused damage and casualties inside Gaza.

International efforts to stem the violence appeared to have already. A Palestinian official told Reuters that Egypt, Qatar and the United Nations, which have mediated truces between Israel and Hamas in the past, were in contact with the group’s leader Ismail Haniyeh.

Tension had been building for weeks during the Muslim holy month of Ramadan, amid clashes between Israeli security forces and Palestinian protesters prompting international concern that events could spiral out of control.





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Chinese Producer Prices Surge, bur Consumer Prices Slow Down, Over Inflation By Investing.com

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Chinese Producer Prices Surge, bur Consumer Prices Slow Down, Over Inflation By Investing.com



© Reuters.

By Gina Lee

Investing.com – China’s producer price jumped in April, but consumer inflation saw modest gains, as soaring commodity prices increased concerns about inflation.

Data from the National Bureau of Statistics (NBS) said that China’s grew 6.8% year-on-year in April, the highest since October 2017. It exceeded the 6.5% growth in forecasts prepared by Investing.com and March’s 4.4% growth.

Meanwhile, the consumer price index (CPI) fell 0.3% in April, lower than the 0.2% contraction in forecasts prepared by Investing.com but above March’s 0.5% decrease. The CPI grew 0.9% , slightly below the 1.0% growth in forecasts prepared by Investing.com while remaining above March’s 0.4% growth.

The widening gap between the CPI and PPI “suggests an uneven recovery of the economy,” said Raymond Yeung, chief China economist at Australia & New Zealand Banking Group (OTC:) Ltd.

“Despite the commodity boom, the service sector has yet to catch up… wages are lagging and the People’s Bank of China (PBOC) will likely keep its policy stance ‘largely neutral,'”  he added.

Investors are also concerned that a commodities boom in the world’s biggest exporter, which was driven by increasing global demand and supply shortages, will lead to inflation globally as manufacturers start passing on higher prices to retailers.

Some central banks, including the U.S. Federal Reserve, maintain the view that any inflation is temporary. However, Chinese policymakers insist that it can limit the impact of commodity prices on the domestic economy and control price growth. Meanwhile, the government also pledged to limit costs to firms by taking further measures to control the raw materials market.

The PBOC is also looking to slow down its stimulus measures rolled out as COVID-19 spread in 2020, due to concerns over the buildup of debt. Economists also expect a slowdown of credit expansion instead of interest rate growth.

Meanwhile, the Communist Party’s Politburo said in April that it will not hand down any sharp reversal of macroeconomic policies.

While China targets to keep its consumer inflation at around 3% this year, the index is expected to be “significantly lower” than the official aim in 2021, said an NBS official.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Benign food prices likely dragged India’s April inflation to three-month low: Reuters poll By Reuters

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Benign food prices likely dragged India’s April inflation to three-month low: Reuters poll By Reuters



© Reuters. FILE PHOTO: A woman wearing a protective face mask buys fruit in a market, amidst the spread of the coronavirus disease (COVID-19) in Mumbai, India, August 20, 2020. REUTERS/Hemanshi Kamani

By Vivek Mishra

BENGALURU (Reuters) – Indian retail inflation likely eased to a three-month low in April on softening prices for vegetables and other perishable foods, a Reuters poll suggested, bringing the headline rate closer to the midpoint of the Reserve Bank of India’s medium-term target.

That reprieve would provide policymakers with some relief as they seek to keep prices under control amid growing risks that state-wide lockdowns and curfews imposed to tackle a record surge of COVID-19 cases could disrupt supplies and fuel prices.

Consumer price inflation was predicted to cool to 4.20% in April, just above the RBI’s 4% mid-point target and down from March’s four-month high of 5.52%, according to the poll of nearly 50 economists taken over the past week.

Forecasts for the headline figure ranged from 3.90% to 6.15%. The data will be released on May 12 at 1200 GMT.

“Base effects are significantly favourable in April, putting more than 150 basis points downward pressure on headline year-on-year inflation. Beyond this, onion prices have also fallen further,” noted Samiran Chakraborty, chief economist for India at Citi.

“On the other hand, prices of food excluding vegetables continue to exert upward pressure on inflation. Fuel prices remained broadly stable in April, likely due to the state elections.”

India will probably receive an average amount of rain in the 2021 monsoon, the India Meteorological Department said last month. Rain delivers about 70% of the country’s annual rainfall and helps drive up food and grain production, which keeps inflation in check.

However, the recent build-up in input costs, driven by high global commodity prices and supply chain disruptions, remains a major concern for the central bank.

The RBI raised its inflation projection for the first half of this fiscal year to 5.2% last month, still within the central bank’s target range of 2%-6%.

“Despite the expected easing in CPI to 4% levels and downside risks to growth, we expect the RBI to keep rates on hold at its June meeting and all through FY22,” said Teresa John, economist at Nirmal Bang.

“We expect the RBI to rely on yield curve management to ensure the smooth sailing of the borrowing programme and to keep benchmark linked rates from rising so as to aid the recovery. We also expect the RBI to continue with its liquidity support measures for the vulnerable sectors.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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