Tether responds to research and development, promising no secured loans by 2023

Tether is back again with criticism from the mainstream media, which once again called out the stablecoin provider for having unreliable reserves.

In response to the “latest Tether FUD cycle,” the company has pledged to reduce the secured loans in its reserves to zero by the end of 2023.

What is research and development?

earlier this month, The Wall Street Journal He called Tether because of its “secured loans” — whereby Tether lends its token stablecoin rather than selling it in advance for hard currency. depending on the company websiteThese loans accounted for $6.1 billion, or 9%, of its reserves as of September 30.

While Tether claims that these loans are secured by “ultra-liquid” assets, it offers few details about the exact nature of those collateral and who the borrowers are. The Wall Street Journal used this angle to point out that these loans create risks for the company to continue meeting stablecoin redemptions.

“Tether cannot be certain that the loans will be repaid, that it can sell the loans to a buyer for dollars if necessary, or that the collateral it holds will be sufficient,” the company wrote.

The cord is generalized ResponseWriting on Tuesday, she dismissed criticism of her secured loans as more “misinformation” produced by Tether Trotters and mainstream media (MSM). However, in its commitment to restore confidence in cryptocurrencies after the FTX crash, it decided to sell it entirely in 2023.

“Tether is professionally and conservatively managed and this will be demonstrated once again by the successful liquidation of the loan business without losses (as all loans are secured by liquid assets),” Tether wrote.

The company has reviewed a number of other ways the MSM has misjudged tether, including suspicions that it has 70% of its reserves. EvergrandeAnd that the company’s testimony kept in its reserves is not reliable. In October, Tether has been confirmed That all the commercial papers you own have been sold.

Doubt ends

With the demise of several major players in the industry like Celsius, FTX, and Alameda, members of the crypto community are turning against each other with theories about who will go down next.

Panic swelled on Twitter on Tuesday as Binance struggled to handle multi-billion dollar withdrawals – especially those denominated in USDC. Its CEO, Chanpeng Zhao (CZ), has surely Any withdrawal delays are simply due to the need to exchange BUSD for USDC, which is happening now It has been done.

Speaking of USDC: Famous bitcoiner and financial journalist Max Keizer posited last week that Circle would be the next big player to fall.

“The department pays people to use it [USDC] And as such, they are on the verge of bankruptcy, while not paying anyone to use Tether [USDT],” he is He said Friday.

CZ has shown suspicion towards Coinbase in recent weeks about the amount of bitcoins it claims to hold on behalf of Grayscale. But the CEO quickly to retreat Questionable claims after looking at Coinbase’s revised financial statements.

Post Tether Responds to FUD, Promises Zero Secured Loans in 2023 appeared first on CryptoPotato.

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