Cryptocurrency billionaire investor Mike Novogratz said he doubted the stability of Tether's stablecoin and called Gemini Dollar as a better alternative.
In recent days, the price of Tether has fallen below a limited trading range around $1. It was suspected that investors began to doubt that each token was backed by a dollar in Tether’s bank accounts.
Unlike bitcoins, the cost of which varies greatly from day to day, Tether tokens are designed for stability. During the conference in Frankfurt, Mike Novogratz stated that "I think Tether didn’t do a great job in terms of creating transparency." He also added that “the concept of stablecoins make sense."
Novogratz believes that it may take time for Tether to restore investors' confidence. He also noted that he would have preferred the recently announced Gemini Dollar over the Tether because it has State Street as a U.S.-based correspondent bank.
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