Cryptocurrencies
Novogratz Says Tether’s Lack of Transparency Hurts It
- He favors custody-supported stable coins such as Gemini Dollar
- Pushing back on Roubini criticism, he says sector must mature
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Billionaire investor Mike Novogratz, one of the best-known advocates of cryptocurrencies, blamed controversial “stable coin” Tether for its own recent woes.
Tether has broken out of its historically tight trading range around $1, fueling suspicion that investors may be losing faith in the token. Unlike Bitcoin, whose value fluctuates wildly from day to day, Tether’s tokens are designed for stability. Prices for the coin have slumped in recent days as traders question Tether’s claim that each one is backed by a dollar in its bank accounts.