Tether CEO dismisses insolvency claims, says critics ignore $30B in group equity
NeutralCryptocurrency
- Tether's CEO has dismissed claims of insolvency, highlighting the company's $30 billion equity buffer as a significant asset that critics overlook. This response comes amid ongoing scrutiny regarding Tether's reserves and financial practices, particularly following a recent downgrade by S&P Global Ratings of its stablecoin, USDT, to the lowest score due to concerns over reserve exposure and governance issues.
- The dismissal of insolvency claims is crucial for Tether as it seeks to maintain market confidence and trust in its stablecoin, which plays a vital role in global cryptocurrency transactions. The CEO's emphasis on the company's substantial equity aims to reassure investors and users about the stability of USDT amidst rising concerns.
- This situation reflects broader tensions in the cryptocurrency market, where stablecoins like USDT face increasing scrutiny regarding their asset management and transparency. The downgrade from S&P has sparked debates about the risks associated with Tether's exposure to volatile assets like Bitcoin and gold, raising questions about the sustainability of its business model and the implications for the wider crypto ecosystem.
— via World Pulse Now AI Editorial System
