Tether, the largest stablecoin in the cryptocurrency markets, has been battling FUD for a long time. Many crypto whales are selling their USDT holdings and switching to stablecoins like USDC, which they consider more reliable. However, Tether is still the most used stablecoin. The company wants to dispel fear with its latest statements.

The company's Chief Technology Officer (CTO) Paolo Ardoino made some critical statements. First of all, after the collapse of Terra, the stablecoin FUD in the markets peaked. Paolo claims continued fear was pumped by some hedge fund managers. The Tether CTO seems confident of a coordinated attack.

   "I have been open about the attempts from some hedge funds that were trying to cause further panic on the market after TERRA/LUNA collapse. It really seemed from the beginning a coordinated attack, with a new wave of FUD, troll armies, clowns etc "

So he says the next target is themselves. Rumors of LUNA and stETH that many funds were profitable from the process were also circulated on social media. Many billion dollar companies like 3AC went bankrupt amid all this chaos.

Tether

What allegations are spreading about Tether?

  • Tether reserves do not have 100% coverage
  • Tether's exposure to Evergrande
  • Tether has 85% exposure to Chinese CP
  • Free token (USDT) issuance
  • loaned by Tether without asking for excess collateral

The CTO announced that they are gradually selling commercial papers that are said to be risky. They are replaced by the safer US treasury bonds. Despite all our efforts, Paolo says, they continued to spread negative claims about us. Indeed, cryptocurrencies were severely damaged by these allegations during the Evergrande crisis.

The company announced today that it has reduced its commercial paper reserves of $45 billion to $8.4 billion. Tether will continue to buy treasury bonds by selling all expiring papers, and will continue to do so until its commercial papers are reset. Thus, it is aimed to eliminate the fear and panic about Tether (USDT). Drawing attention to the chaos experienced in the last 2 months, Paolo said that they have successfully come out of this difficult process and asked:

   “Now… can other stablecoins survive the same test?”