Tether Denies WSJ's Panic-Causing Reserve Claim!

Tether, the issuer of the largest stablecoin, denied all the allegations in The Wall Street Journal's report.

Tether responded to The Wall Street Journal's (WSJ) claims that the largest stablecoin USDT does not have enough reserves and there are doubts about these reserves. Tether, the issuer of USDT, targeted the WSJ's claims in its latest blog post and claimed that the respected media outlet spread "false information" with its news.

Denial of Reserve Claim

A WSJ report published on Sunday claimed that even a 0.3 percent loss in Tether's assets could "technically bankrupt" the stablecoin issuer at the center of the controversy. In its latest blog post, Tether stated that the WSJ's news is part of a fake agenda to tarnish its image as it is not the only stablecoin issuer with narrow margins.

Tether published its last quarter report a few days after it announced that it had signed with one of the largest auditing companies, BDO, earlier this month. The report included information that approximately 12 percent of the $66.4 billion reserve was cash reserves and was in the company's vault. In the news of WSJ, which was also mentioned in this audit report, it was claimed that crypto money companies are not transparent enough when it comes to their financial statements, and even if an audit is carried out, there is no audit standard set for crypto assets. The company also disputed this claim, pointing out that BDO International is the world's fifth largest audit firm, adding that BDO has "unlimited access" to any document during the audit process.

Tether also stated that in response to the WSJ's report, the assumption that its business process was "unprofitable" was incorrect. The company pointed out that billions of its tokens have been used in the last few months.

Short Position Alleged Also Dismissed

Tether's market cap, on the other hand, dropped significantly as a result of the Terra (LUNA) ecosystem crash in May. In its news published at the end of June, the WSJ implied that many investors are only interested in USDT to take short positions, implying that investors are acting with the expectation that one day the USDT will lose its peg. The issuer of the largest stablecoin also rejected the claim that hedge funds and investors opened a short position in USDT.

Source: Omer Ergin by coin-turk.com