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

  • BTC Surpasses $80,000

    Market data shows that BTC has surpassed $80,000, currently priced at $80,071.38, with a 24-hour increase of 2.32%. The market is experiencing significant volatility, so please ensure proper risk management.

  • BTC Surpasses $79,000

    Market data shows that BTC has surpassed $79,000, currently priced at $79,010.22, with a 24-hour increase of 0.98%. The market is experiencing significant volatility, so please ensure proper risk management.

  • Iran's Foreign Ministry: The U.S. Responds to Iran's '14-Point Proposal'

    On May 4, local time on May 3, Iranian Foreign Ministry spokesman Baghaei stated that the U.S. has responded to Iran's '14-point proposal' through Pakistan, and Iran is currently reviewing this response. Baghaei pointed out that Iran proposed to reach an understanding on a complete cessation of hostilities within 30 days and to agree on its implementation, focusing on ending conflicts on all fronts, including Lebanon. Baghaei also mentioned that 'at this stage, there are no nuclear negotiations between the U.S. and Iran.' (Dongxin News Agency)

  • SpaceX IPO Approaches, Wall Street May Sell Billions in Tech Stocks to Reallocate Funds

    According to The Information, SpaceX is set to launch a large-scale initial public offering (IPO), prompting major funds on Wall Street to take action. Reports indicate that about a week ago, a private jet emblazoned with the SpaceX logo carried nearly 200 investors from large Wall Street funds to Texas for a multi-day roadshow hosted by SpaceX executives. Due to overwhelming subscription demand, there were even instances where the aircraft could not accommodate all interested investors. As the IPO of this company, which comprises Musk's rocket and AI businesses, approaches, Wall Street may be discussing which tech stocks to sell in order to free up funds for subscribing to SpaceX shares, which is expected to trigger a sell-off of billions in tech stocks.

  • ETH Falls Below $2300

    Market data shows that ETH has fallen below $2300, currently priced at $2299.76, with a 24-hour increase of 0.11%. The market is experiencing significant volatility, so please ensure proper risk management.

  • Trump Suggests Possibility of Resuming Airstrikes on Iran

    On May 3, during an interview at an airport in Florida on the evening of May 2, U.S. President Trump stated that there is a possibility of the U.S. resuming airstrikes on Iran. Trump posted on social media that he would soon review Iran's latest proposal, but he 'cannot imagine' that the proposal 'would be acceptable,' threatening that Iran 'has not yet paid a sufficiently high price.' Earlier that day, before boarding Air Force One, Trump indicated that he would provide further details on Iran's latest proposal. Previously, reports indicated that Iran had submitted a proposal containing 14 points through Pakistan in response to the 9 proposals put forth by the U.S.

  • Berkshire Hathaway's Cash Reserves Surge to Record $397 Billion

    On May 2, it was reported that in the first quarter under CEO Greg Abel, Berkshire Hathaway's cash reserves soared to an all-time high of $397 billion. Although the company's cash reserves slightly decreased at the end of last year, they saw a significant increase in the first quarter, as the company net sold $8.1 billion in stocks during this period. (Jin Shi)

  • Berkshire Hathaway Releases Q1 Report

    On May 2, Berkshire Hathaway A (BRK.A.N) reported Q1 2026 revenue of $93.675 billion, up from $89.725 billion in the same period last year, exceeding market expectations of $89.274 billion. The net profit was $10.106 billion, compared to $4.603 billion in the same period last year, while market expectations were $11.762 billion. (Jin Shi)

  • U.S. Government: $40 Billion Earned from 10% Stake in Intel (INTC.US)

    On May 2, the U.S. government announced that its 10% stake in Intel (INTC.US) has generated $40 billion in earnings. (Dongxin News Agency)

  • BTC Falls Below $78,000

    Market data shows that BTC has fallen below $78,000, currently priced at $77,977.99, with a 24-hour increase of 1.9%. The market is experiencing significant volatility, so please ensure proper risk management.