Tether responds to next round of doomsday gossip

The Wall Street Journal opened a December 1 next attack on the industry and this time Tether, publisher of the USDT stablecoin, was once again in the crosshairs of the powerful newspaper. The news outlet claims that Tether is increasingly lending its own stablecoins to customers, rather than selling them for actual US dollars.

Risk regarding Tether is increasing

This results in the risk of Tether implosion increasing with the next major capitulation. The Wall Street Journal writes:

“The company may find itself in a position of having insufficient liquid assets to meet its obligations in a crisis.”

The American newspaper claims to have examined Tether’s books, which contain evidence for these loans. The most recent report suggests that this form of lending has now grown to $6.1 billion, which takes up about 9 percent of all of the company’s assets.

Of course, Tether doesn’t let this happen and hits back in a blog post. “WSJ & CO: The Hypocrisy of Mainstream Media, Asleep at the Wheel of Information,” is the title of Tether’s blog post.

Tether in the counterattack

The main message in Tether’s blog post revolves around the fact that the mainstream media has failed to predict the collapse of parties like FTX, while continuing to focus on Tether.

Incidentally, it does not deny that the loans discussed by the Wall Street Journal are indeed on the books. The newspaper wrote that Tether could get into trouble because the loans are denominated in its own USDT. If the value of the stablecoin drops, the company could be damaged.

“This misses the mark completely and misunderstands the assets underlying USDT. The loans are protected by extremely high collateral and are even backed by Tether itself if necessary.”

It is not the first time that WSJ has lashed out at Tether.

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