Tether refutes the circulating rumor that its commercial paper portfolio is backed by 85% by Chinese or Asian commercial paper and is traded at a 30% discount.
Tether condemns false rumors
Tether knows rumors are circulating that their commercial paper portfolio is 85% backed by Chinese or Asian commercial paper and is traded at a 30% discount.
The above rumor comes right after the market is experiencing some significant crashes from the Celsius platform and the investment fund Three Arrows Capital, causing Bitcoin and Ethereum to continue to plunge seriously in the afternoon of June 15.
Immediately, Tether quickly reassured the community with the claim that this viral effect was completely untrue, launched to cause more panic in order to profit from the already tense market.
The company has called such allegations baseless, reiterating that more than 47% of total USDT reserves are currently US Treasury bonds and commercial paper makes up less than 25%.
The world’s largest USDT stablecoin issuer added that Celsius’ positions were liquidated after the lender froze user withdrawals in response to a sharp downturn in the crypto market. An investigation last year found that Tether lent Celsius $1 billion using Bitcoin (BTC) as collateral.
In addition, the company Chief Technology Officer (CTO) Paolo Ardoino also denied rumors that they have a lending connection with Three Arrows Capital, an investment fund currently facing insolvency after being liquidated. massively.
Besides, Mr. Paolo Ardoino also confirmed that Tether has continued to reduce its current commercial paper portfolio, down to 11 billion USD. The company expects to further reduce it to $8.4 billion by the end of June 2022. Eventually this number will gradually decrease to zero without incurring any loss.
The reserve composition of USDT has long been an area of interest in the crypto market, with particularly questionable questions surrounding the company’s USDT backing story. However, according to the latest audit report published in May 2022, Tether still claims to have a reserve of $82.4 billion, confirming that it is “excessive” to back the stablecoin USDT.
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