The well-known trading veteran Peter Brandt is making headlines once again. Specifically, Brandt is now taking aim at the cryptocurrency stablecoin Tether. In a recent tweet, Brandt said that holding Tether is as risky as holding a “Nigerian trinket”.
“Tether about as safe as holding Nigerian trinkets”
Specifically, Brandt’s tweet calls those holding Tether “fools” and lambasts people who condemn fiat currencies, yet still invest in Tether. In calling Tether “about as safe as the Nigerian Trinket”, he compares Tether to some arcane, worthless asset class:
“Tether. Now that is an interesting story. Holding Tether is about as safe as holding the Nigerian Trinket. I think people are fools for holding wealth — even overnight — in Tether. It is a joke when ppl condemn USD as fiat, yet hold Tether.”
This is not the first time that an investor compares a cryptocurrency to trinkets. Warren Buffett famously said that Bitcoin was “like a seashell or something”, in that it does not hold any intrinsic value. Brandt, unlike Buffett, is however bullish on Bitcoin.
Brandt says Tether holders should “sleep well”
Nevertheless, he does not seem to share the same sentiment when it comes to Tether. In addition to comparing it to a “trinket”, Brandt also said Tether is risky and not adhering to proper regulations:
“Tether holders — sleep well. Your wealth will sit overnight with a patch-work of exchanges not subject to regulatory authorities and for whose financial strength you know little about. LOL with that one.”
Moreover, Brandt also made sure to point out that holding Tether does not shield US investors from the IRS.
“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 amt 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.”
Tether has become a somewhat controversial “stablecoin”
Peter Brandt is not afraid to make bold statements regarding the cryptocurrency sector. For example, earlier this year he was predicting that Bitcoin and gold could both fall.
Nevertheless, he was sure to note that there was a bullish “pie-in-the-sky” scenario in which Bitcoin could see a fresh crypto rally.
Tether was previously claiming to back each and every one of its tokens with a corresponding US dollar. However, since March 2019, Tether is now also using loans to affiliate companies to back its stablecoin. This change in policy is still the source of some criticism, as some believe it erodes Tether’s stability.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.