Tether (USDT) Responds To The Wall Street Journal’s Claims!

stablecoin distributor Tether (USDT), He denied the allegations in a Wall Street Journal report about the uncertainty in the company’s balance sheet.

In an announcement on the company’s website, Tether said US treasury bonds have been the leading safe asset for decades, in response to the WSJ’s claim that the company has a “weak resource reserve.”

The Wall Street Journal Claimed that a 0.3% Drop in Tether’s Assets Could Cause Bankruptcy

According to a recent certification report from accounting firm BDO, USDT’s assets of $67.7 billion on August 25 were only $191 million more than liabilities, meaning a mere 0.3% decline in assets was “technical bankruptcy,” according to the WSJ report. was said to result in

USDT also insisted that it is the most honest and transparent stablecoin on the market, promising to provide monthly audits from January despite criticism of the lack of an official audit.

Stablecoins have come under scrutiny by regulators and investors alike this year following the collapse of the algorithmic stablecoin TerraUSD (UST), with $18 billion in market capitalization disappearing from the industry.

Terra’s collapse came as a result of companies like Celsius Network, Voyager and Three Arrows Capital filing for bankruptcy in the months that followed. cryptocurrency led to the crisis.

As the sustainability of stablecoins began to be questioned, the USDT price temporarily decreased to $ 0.95 due to the fear of investors in May.

In June, hedge funds reportedly had hundreds of millions of dollars worth of shorting positions on Tether, but the stablecoin company denied these claims.

*Not investment advice.