Cointime

Download App
iOS & Android

Tether Addresses FUD Around Secured Loans, Reveals Plans to Reduce These to Zero in 2023

Validated Media

Tether has proven its resilience by weathering eight years of the industry’s tumultuous markets.

Unlike countless parties that have gone bankrupt or are facing bankruptcy risks on the back of widespread fraud, leverage and bad risk management, Tether has prioritized transparency, accountability and operational excellence above all else.

In response to the most recent attack on Tether, the company has reiterated that the secured loans held in its reserves are overcollateralized and covered by extremely liquid assets.

Understandably, after the events that have unfolded this year, the company recognizes that it is mission critical to restore faith in the market. Today, in addition to dismissing the recent cycle of Tether FUD that’s hitting the rumor mill, Tether is announcing starting from now, throughout 2023, it will reduce secured loans in Tether’s reserves to zero.

Tether is professionally and conservatively managed and this will be demonstrated once again by successfully winding down the lending business without losses (since all loans are over-collateralized by liquid assets). Tether risk management has shown over several years to be best in class while dealing with the unjustified fears created by fudders and speculative attempts of a few to take Tether down to the detriment of Tether users which represent the wider community.

This decision is fueled by our unwavering commitment to serve the global audience who have continued to support Tether every step of the way.

We will continue to show Tether’s resilience through the most uncertain times, regardless of the story fabrications and disinformation concocted by Tether Truthers and click bait headlines from mainstream media that have been consistently wrong about Tether, for close to a decade.

First, they questioned Tether’s reserves while propping up competitors as the most ‘trusted’ alternative. They were proven wrong.

Then, they alleged Tether had 70% of its reserves in Evergrande. They were proven wrong again with the Evergrande crisis unfolding without any material impact to Tether or the crypto industry.

It didn’t stop there.

Next, the critics claimed Tether’s commercial paper reserves were worthless and would never sell. They were wrong yet again, as two months ago Tether eliminated all commercial paper from its reserves.

They then went on to say Tether couldn’t sign with a big accounting firm – except, Tether has! With BDO, a top-5 accounting firm.

Now, as we see the ‘media darlings’ of crypto being exposed one by one for causing incalculable damage to people and the industry, their online allies and mainstream media are again desperately trying to make Tether the story.

As this market continues to grow and evolve, Tether is committed to adapting and leading the way forward as the infrastructure that’s powering the future of global finance & decentralized communications and information technology.

No matter what Tether FUD skeptics and journalists throw at us, we will continue to focus on emerging markets, financial freedom and demonstrate the deep care for our community that have made us the most trusted (and most used) stablecoin by people worldwide.

Just don’t expect Tether to ever become a sock puppet for Wall Street – especially as our competitors are doing a fine job filling that role.

Comments

All Comments

Recommended for you

  • Morgan Stanley: The U.S. dollar will peak before the end of the year and enter a "bear market pattern" in 2025

    Morgan Stanley predicts that the strong US dollar will peak before the end of the year and then enter a "bearish market trend", slowly declining until 2025. The bank believes that due to the Bank of Japan's rate hikes and gradual easing actions by the Reserve Bank of Australia, the potential for the yen and Australian dollar to rise next year is the greatest.

  • Equation News calls out Binance for "insider trading": You are destroying the sentiment of the trading market

    On November 25th, Formula News reported that to those insider traders who participated in the listing of Binance perpetual contracts, please slow down when selling your chips next time. The WHY and CHEEMS crashes you caused resulted in a 100% negative return for everyone involved in the trade, and you are destroying the emotions of the trade. Earlier today, Binance announced the listing of 1000WHYUSDT and 1000CHEEMSUSDT perpetual contracts, which caused a short-term crash in WHY and CHEEMS and sparked intense discussion within the community.

  • U.S. Congressman Mike Flood: Looking forward to working with the next SEC Chairman to revoke the anti-crypto banking policy SAB 121

     US House of Representatives will investigate Representative Mike Flood's recent statement: "Despite widespread opposition, SAB 121 is still operating as a regulation, even though it has never gone through the normal Administrative Procedure Act process." Flood said, "I look forward to working with the next SEC chairman to revoke SAB 121. Whether Chairman Gary Gensler resigns on his own or President Trump fulfills his promise to dismiss Gensler, the new government has an excellent opportunity to usher in a new era after Gensler's departure." He added, "It's not surprising that Gensler opposed the digital asset regulatory framework passed by the House on a bipartisan basis earlier this year. 71 Democrats and House Republicans passed this common-sense framework together. Although the Democratic-led Senate rejected it, it represented a breakthrough moment for cryptocurrency and may provide information for the work of the unified Republican government when the next Congress begins in January next year."

  • Indian billionaire Adani summoned by US SEC to explain position on bribery case

    Indian billionaire Gautam Adani and his nephew, Sahil Adani, have been subpoenaed by the US Securities and Exchange Commission (SEC) to explain allegations of paying over $250 million in bribes to win solar power contracts. According to the Press Trust of India (PTI), the subpoena has been delivered to the Adani family's residence in Ahmedabad, a city in western India, and they have been given 21 days to respond. The notice, issued on November 21 by the Eastern District Court of New York, states that if the Adani family fails to respond on time, a default judgment will be made against them.

  • U.S. Congressman: SEC Commissioner Hester Peirce may become the new acting chairman of the SEC

    US Congressman French Hill revealed at the North American Blockchain Summit (NABS) that Republican SEC Commissioner Hester Peirce is "likely" to become the new acting chair of the US Securities and Exchange Commission (SEC). He noted that current chair Gary Gensler will step down on January 20, 2025, and the Republican Party will take over the SEC, with Peirce expected to succeed him.

  • Tether spokesperson: The relationship with Cantor is purely business, and the claim that Lutnick influenced regulatory actions is pure nonsense

     a spokesperson for Tether stated: "The relationship between Tether and Cantor Fitzgerald is purely a business relationship based on managing reserves. Claims that Howard Lutnick's joining the transition team in some way implies an influence on regulatory actions are baseless."

  • Bitwise CEO warns that ETHW is not suitable for all investors and has high risks and high volatility

    Hunter Horsley, CEO of Bitwise, posted on X platform that he was happy to see capital inflows into Bitwise's Ethereum exchange-traded fund ETHW, iShares, and Fidelity this Friday. He reminded that ETHW is not a registered investment company under the U.S. Investment Company Act of 1940 and therefore is not protected by the law. ETHW is not suitable for all investors due to its high risk and volatility.

  • Musk said he liked the "WOULD" meme, and the related tokens rose 400 times in a short period of time

    Musk posted a picture on his social media platform saying he likes the "WOULD" meme. As a result, the meme coin with the same name briefly surged. According to GMGN data, the meme coin with the same name created 123 days ago surged over 400 times in a short period of time, with a current market value of 4.5 million US dollars. Reminder to users: Meme coins have no practical use cases, prices are highly volatile, and investment should be cautious.

  • Victory Securities: Funding Rates halved and fell, Bitcoin's short-term direction is not one-sided

    Zhou Lele, the Vice Chief Operating Officer of Victory Securities, analyzed that the macro and high-level negative impact risks in the cryptocurrency market have passed. The risks are now more focused on expected realization, such as the American entrepreneur Musk and the American "Efficiency Department" (DOGE) led by Ramaswamy. After media reports, the increase in Dogecoin ($DOGE) was only 5.7%, while Dogecoin rose by 83% in the week when the US election results were announced. Last week, the net inflow of off-exchange Bitcoin ETF was US$1.67 billion, and the holdings of exchange contracts and CME contracts remained high, but the funding rates halved and fell back, indicating that the direction of Bitcoin in the short term is not one-sided, and bears are also accumulating strength.

  • ECB board member Villeroy: Falling inflation allows ECB to cut interest rates

     ECB board member Villeroy de Galhau said in an interview that the decline in inflation allows the ECB to lower interest rates. In addition, the slow pace of price increases compared to average wages is also a factor in the rate cut. Villeroy de Galhau emphasized that the ECB's interest rate policy decision is independent of the Fed. Evidence shows that the ECB began to lower interest rates in early June, while the Fed lowered interest rates three months later. With the decline in inflation, we will be able to continue to lower interest rates. Currently, the market generally expects the ECB to cut interest rates by 25 basis points at the next meeting in December, but weaker data increases the possibility of a 50 basis point cut.