Peter Brandt thinks Tether is nothing more than a “Nigerian trinket”
By Bob Garcia
The cryptocurrency enthusiast doesn’t see a lot of value in the stablecoin
Perter Brandt, a trading veteran and renowned personality in the cryptocurrency world, has directed some controversial comments toward Tether’s credibility. He has advised traders not to “hold it overnight,” as he called this investment to be riskier than “the Nigerian Trinket.” Brandt took aim at this controversial stablecoin, calling the people who hold Tether “even overnight” to be “fools.” Basically, his point seems to be that this stablecoin is neither reputable nor well regulated, so it becomes a risky asset.
“It is a joke when people condemn USD as fiat, yet hold Tether,” said Brandt. “Tether holders — sleep well. Your wealth will sit overnight with a patchwork of exchanges not subject to regulatory authorities and for whose financial strength you know little about. LOL with that one.” To be fair, Nigeria’s currency is called naira and, even though it has 18% inflation, it is not even close to countries like Venezuela, which has one of the highest inflation ever reported.
In addition, Brandt warned investors about rumors that using Tether from trading funds to avoid being investigated by the Internal Revenue Service (IRS) to pay taxes could be risky. “Point of clarification for U.S. citizens. Selling BTC or other cryptos for tether does NOT let you escape the IRS. The trigger to the IRS is the [amount] of cryptos sold/traded. Once you hit that level (AND THAT LEVEL WILL BE DOWN TO $1k within years), you will be reported by exchange,” he added.
Tether has been dealing with waves of controversy since 2018, and there have been more critics just like Brandt. Another research suggested that Tether issuance was somehow a market manipulation leading to a jump in Bitcoin prices to all-time highs.