Tether

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Following the crypto winter in the first half of 2022 and the collapse of the Terra ecosystem, many investors had a paradigm shift with stablecoins such as Tether. Unfortunately, too many such coins have failed to provide the stability they claimed. Hence, users started demanding more transparency in the reserves of most stablecoins.
Tether USDT was among the coins that investors demanded to publish its reserves. A report mentioned that the issuer firm of USDT stablecoin, Tether, has been operating without transparency.

It revealed that the company has been lending its token to users instead of making sales for cash. Also, it has refused to disclose all the loans it issued using the stablecoin. The accusations are increasing doubts about the stability of Tether USDT as the issuer failed to be more transparent.
The tension has been gradually building up against Tether and its reserves publication. The situation worsened for Tether with the collapse of the FTX crypto exchange and its Chapter 11 bankruptcy.
Image source: Reuters.com
The spreading contagion from the FTX saga is the bearish market trend that many believe has cut down the collateral of the stablecoin.
Tether Founder Defends The Firm
With the growing flame against Tether, the co-founder, Reeve Collins, decided to step into the situation. He has finally defended the firm against several allegations on CNBC’s latest episode of SquawkBox.
The co-founder mentioned that Tether disclosed its proof of reserves on the company’s official website. According to him,  the publication is there for everybody to see or validate the information it reveals.
Also, Collins stated that the firm undergoes auditing frequently over a few months. This practice will enable government authorities to probe the processes involved in their funds’ investment and management.
Further, the co-founder explained that Tether had maintained its integrity during its operational history. For example, he reported that the firm has never failed to redeem its coin for exactly $1 per coin.

Even after he sold Tether in 2015, Collins noted that the company has not deviated from its principles in operation. To him, the firm has withstood the test of time as it continued to employ the best tactics in curbing associated risks of operations.
FTX Collapse Rekindles Uncertainty
Tether has faced conflicts with regulators, even from the time of the fall of Terra and other firms like 3AC. There have always been doubts over the transparency of the stablecoin’s reserves.
Again, the collapse of the FTX exchange has spiked doubts about USDT’s market cap. The concern relates to the connection alleged between the FTX token, FTT, and the stablecoin. USDT lost its peg on the dollar due to the spreading impact of the FTX saga.
FTT is on an upward trajectory l FTTUSDT on Tradingview.com
Featured image from Pixabay, chart from TradingView.com


Following the crypto winter in the first half of 2022 and the collapse of the Terra ecosystem, many investors had a paradigm shift with stablecoins such as Tether. Unfortunately, too many such coins have failed to provide the stability they claimed. Hence, users started demanding more transparenc...

bitcoinist.com

Tether Founder Responds To Concerns Over Not Publishing USDT Reserves

On Dec. 1, the Wall Street Journal published another attack on the crypto industry, targeting Tether this time.
The outlet claims that the company has “increasingly been lending its own coins to customers rather than selling them for hard currency upfront.”
It added that these loans add risk that the “company may not have enough liquid assets to pay redemptions in a crisis.”
The WSJ claims to have examined Tether’s financial reports, which evidence these loans. The most recent report suggests they reached $6.1 billion as of Sept. 30, which equates to 9% of the company’s total assets.
Tether hit back with a blog post titled “WSJ & CO: The Hypocrisy of Mainstream Media, Asleep at the Wheel of Information.”

WSJ & CO: The Hypocrisy of Mainstream Media, Asleep at the Wheel of Informationhttps://t.co/XS4eCE84I8
— Tether (@Tether_to) December 1, 2022

Tether Bites Back
The majority of the lengthy response was ranting at mainstream media for its failure to predict the demise of major crypto platforms and its repeated targeting of Tether.
However, it did not deny that these secured loans were real. The WSJ wrote that because Tether’s loans of USDT were denominated in USDT, the company was exposed to a decline in the value of the stablecoin.
Regarding those loans and the WSJ coverage, the firm stated:
“This completely misses the mark and mistakes the USDT itself for the collateral that underpins it. Tether’s secured loans are extremely overcollateralized and even backstopped by Tether’s additional equity if needed.”
The company added that the equity was growing quickly. Around 82.45% of total Tether reserves are in “U.S. Treasuries and other cash equivalents whose yields are at multi-year highs,” it added.
Tether explained that its secured loans operate similarly to private banks lending to customers using secured collateral. It added that Tether always requires wide over-collateralization by extremely liquid assets.
“While banks are generally allowed to end up in a fractional reserve scenario, this is not the case for Tether. Tether collateral size and quality ensures that Tether backing remains above 100% at any time.”
In November, Tether also refuted FUD regarding its issuance on the embattled Solana network.
Stablecoin Market Outlook
Tether is still the industry leader for stablecoins, with a market share of 46% and a supply of 65.6 billion USDT.
The total capitalization of all stablecoins has fallen to $142.6 billion, which represents around 16% of the total crypto market cap.
Circle’s USDC is the second largest stablecoin, with a supply of 43.2 billion and a market share of 30%. Both Tether and Circle have seen supplies decrease this year, while Binance has increased its issuance of BUSD, which currently has a supply of 22.3 billion coins.
The post Tether Responds to Media FUD Regarding Rising Loan Risk appeared first on CryptoPotato.

The world’s largest stablecoin issuer, Tether, has responded to the latest round of mainstream media FUD (fear, uncertainty, and doubt).

cryptopotato.com

Tether Responds to Media FUD Regarding Rising Loan Risk

Tether, the largest stablecoin issuer in the world, has released a statement assuring investors that USDT is in no way affected by the meltdown of crypto exchange FTX and its trading arm Alameda Research.
In a new blog post, Tether says that since Alameda was a large issuer of USDT, speculation on whether the trading firm’s collapse presents a risk to Tether has surfaced.

Tether says that Alameda being an issuer of USDT means that Alameda originally sent USD to Tether, and received USDT in return. Now, the only option Alameda has is to return USDT to Tether to be reimbursed in USD.
“Those reserves are still in Tether’s possession; they are not on Alameda’s balance sheet. The collateral backing Alameda’s USDT is not on Alameda’s balance sheet.
What can Alameda do with their USDT? Their only option is to redeem any USDT they have for USD via Tether’s redemption facility. This is the same as any other USDT holder around the world…
Tether has no outstanding loans of USDT, of Tether’s reserves, or of any other funds whatsoever.
The main problem countless other companies are facing is that they recklessly lent Alameda various assets relying on extremely illiquid collateral. Since Alameda cannot repay those loans at this time, those companies have a hole on their balance sheet. This is not how USDT issuance works, and is not behavior Tether engaged in with Alameda in any way.”
The Hong Kong-based company also addresses the decision from multiple crypto exchanges to halt deposits of USDT on the Solana (SOL) blockchain. Tether says this also does not affect it.
“USDT issued on Solana is the same as USDT issued on any other chain. The token simply represents a claim to $1 of Tether’s reserves and collateral. Alameda’s heavy involvement in Solana doesn’t impact the underlying dynamics of how USDT functions and USDT issuance works whatsoever.
The move to suspend USDT deposits on these exchanges is likely just due to the heavy connections between FTX, Alameda, and Solana. If holders of USD? want to redeem USDT with Tether, they still can. USDT on Solana is equivalent to USDT on any other Blockchain, it is not issued by Solana and is not reserved by Alameda or FTX.”
On Friday, Tether announced a chain swap of $1 billion worth of USDT from Solana to Ethereum.

In few minutes Tether will coordinate with a 3rd party to perform a chain swap, converting from Solana to Ethereum ERC20, for 1B USDt. The #tether total supply will not change during this process.Learn more about chain swaps ??https://t.co/abfgnELSvi
— Tether (@Tether_to) November 18, 2022

A chain swap is a process that moves crypto assets from one blockchain to another. According to Tether, chain swaps may be requested by an exchange if they have a surplus of funds on one blockchain but a deficit on another.
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Featured Image: Shutterstock/cosmoman
The post Stablecoin Issuer Tether Explains How FTX and Alameda Collapse Has No Effect on USDT appeared first on The Daily Hodl.


Tether, the largest stablecoin issuer in the world, has released a statement assuring investors that USDT is in no way affected by the meltdown of crypto exchange FTX and its trading arm Alameda Research. In a new blog post, Tether says that since Alameda was a large issuer of USDT, speculation o...

dailyhodl.com

Stablecoin Issuer Tether Explains How FTX and Alameda Collapse Has No Effect on USDT

Dogecoin’s Shibetoshi Nakamoto believes a potential crash of the crypto exchange Binance or the stablecoin-issuer Tether could severely destabilize the entire industry.
He also advised people to do appropriate research and understand the digital asset’s sector specifics before entering it.
Binance/Tether Collapse Could be Devastating
The Co-Creator of the memecoin Dogecoin – Billy Markus (better known as Shibetoshi Nakamoto) – thinks if either Binance or Tether goes down, this could be “pretty much game over.”
The American software engineer also outlined that an increasing number of people have realized that too much centralization is a “big weakness.”

to anyone worrying about binance and/or tether collapsing, if either does it’s pretty much game over
it’s good that more of y’all are finally figuring out what this whole thing is and how the centralized stuff is a big ol’ weakness, but also, it was like this when ya bought too
— Shibetoshi Nakamoto (@BillyM2k) November 16, 2022

The former CEO of Twitter – Jack Dorsey – was among the individuals to agree with Nakamoto’s assumption. He said such a potential meltdown will undoubtedly be “game over for the games.”
Still, DOGE’s creator believes the potential adverse event will not mean “crypto dies” but trigger a “big mega mondo market crash.”
Almost every disruption in the past, including the recent fiasco with FTX, has prompted severe market declines and panic among crypto participants. The uncertainty has also caused critics to proclaim bitcoin “dead.”
Despite “dying” over 460 times, the primary cryptocurrency is still around and keeps expanding its presence across the globe. It has become a legal tender in distressed economies like El Salvador and the Central African Republic, while numerous investors view the asset as a hedge against inflation because of its limited supply.
How Is Binance Doing?
Some market participants expected the FTX crisis to cause a domino effect and drag other exchanges into the mud.
The largest cryptocurrency platform – Binance – assured its balance sheet is stable and even topped up its Secure Asset Fund for Users (SAFU) to $1 billion to protect customers in case of emergency.
In addition, the company introduced an industry recovery fund that could help struggling projects during turbulent times.
“To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify,” CEO Zhao stated.
The post If Binance or Tether Collapse, it’s Game Over for Crypto, DOGE’s Founder Says appeared first on CryptoPotato.

An eventual crash of Binance or Tether could cause a "big mega mondo market crash," Shibetoshi Nakamoto assumed.

If Binance or Tether Collapse, it’s Game Over for Crypto, DOGE’s Founder Says

The world’s largest stablecoin issuer, Tether, has ensured that there are no risks from USDT on the Solana network.
On Nov. 18, Tether issued a statement that Alameda issued USDT was safe from any contagion fallout from the failed FTX exchange.
According to the Tether transparency report, Solana is the third-largest network for the stablecoin after Tron and Ethereum. There are 1.89 billion USDT on Solana, representing just under 3% of the total supply.

Why USD₮ Issuances Ensures No Risks from FTX/Alameda https://t.co/iLXchRHVsI
— Tether (@Tether_to) November 18, 2022

Tether: No Threat From Alameda
The fintech firm explained that USDT is issued on a 1:1 basis when institutional parties send dollars to Tether. This was the case with Alameda for Tether on Solana, it added:
“Those reserves are still in Tether’s possession; they are not on Alameda’s balance sheet. The collateral backing Alameda’s USDT is not on Alameda’s balance sheet.”
The only option Alameda has is to redeem the USDT and have Tether return the greenbacks.
Tether also asserts that it has no outstanding loans of the stablecoin, its reserves, or any other funds whatsoever to Alameda.
“The main problem countless other companies are facing is that they recklessly lent Alameda various assets relying on extremely illiquid collateral,” it explained. The company added that there was no leverage, which played a key role in the downfall of FTX.
It also referenced the recent suspensions of USDT and USDC deposits on Solana by Binance and OKX.
“USDT issued on Solana is the same as USDT issued on any other chain. The token simply represents a claim to $1 of Tether’s reserves and collateral.”

1/
Tether re: Alameda: Alameda sent USD and got USDt. Alameda/FTX doesn’t have claims on USD.
It’s pure transactional.
Truthers can’t believe all their mighty heroes are actually the ones that destroyed half industry.
— Paolo Ardoino  (@paoloardoino) November 17, 2022

Solana’s native token, meanwhile, has tanked a further 5.7% on the day in a fall to $13.68 at the time of writing. SOL has now lost 56% over the past fortnight and is 95% down from its all-time high, according to CoinGecko.
Stablecoin Ecosystem Outlook
Tether remains the leading stablecoin issuer with 65.9 billion USDT giving it a market share of 45.5%. Its supply has shrunk by 21% since the beginning of May.
Circle’s USD Coin remains in second place with 44.1 billion USDC in circulation, giving it a market share of around 30%. Its supply has also declined by 21% since the beginning of July.
The third-largest stablecoin by market cap, Binance USD, has seen the opposite, with a supply increase of 30% since the beginning of July. BUSD has 22.9 billion coins circulating, giving it a market share of almost 16%.
The post Tether Ensures No Risk From USDT on Solana, SOL Tanks Further appeared first on CryptoPotato.

Leading crypto companies such as Tether are scrambling to reassure users that their products and services are free of FTX and Alameda contagion.

Tether price	$1.00
Low - High 24H	$0.996876 - $1.00
Market cap	$65.61B
Volume 24H	$27.27B
All time high	$1.32 -24.43% July 24th 2018
All time low	$0.572521 74.64% March 2nd 2015
Genesis date	N/A

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