There are about $216 Billion worth of cryptocurrencies in circulation (according to the Wall Street Journal) and of that, about $3 Billion is in the cryptocoin Tether.
A major reason for this is that Tether claims to be backed by the strongest fiat currency in the world: the US Dollar.
However, the WSJ reports that Tether has never proven that it has the cash reserves to back up its claim.
Although Tether is considered by many as the “cryptobank” for the cryptocurrency market, it recently fired its auditor before the audit report was released. The auditor refused to comment.
This lack of transparency was a major reason why the SEC refused to approve a proposed #Bitcoin ETF. (WSJ subscription may be required).