The Wall Street Journal, one of the most important actors of the US mainstream media, which makes striking news about the crypto money market, targeted Tether in its news yesterday. The Wall Street Journal reported a risk warning against Tether.
Claiming that the company behind the largest stablecoin Tether (USDT) is increasingly lending to customers instead of selling its own coins for cash, the Wall Street Journal noted that these loans increase the risks that the company may not have enough liquid assets to pay in the event of a crisis. The Wall Street Journal claimed in its report that it examined Tether’s financial reports proving these loans.
Responding to the Wall Street Journal’s report with harsh language, Tether company published a blog post titled “WSJ & CO: The Hypocrisy of Mainstream Media Fits in the Information Wheel”. Describing WSJ’s (Wall Street Journal) news as hypocrisy, Tether company stated that Tether has always been a popular target until now.
“Despite the heavy focus of skeptics and critics on the industry, it’s surprising that real bad actors and scams have escaped their radar. Tether has been a popular target for years for these skeptics, journalists, and even mainstream media outlets. Given all this, the fair question to ask is:
How many of Tether’s established critics have warned about FTX, Alameda, BlockFi, Genesis, Celsius, 3AC or Terra?
Did the individuals and organizations focused on rooting out bad actors and protecting investors at least research these assets with the energy they put into scanning every detail of Tether’s operations? The answer to that question is disappointingly no.”
Not denying that the secured loans are genuine in its statement, Tether responded to the WSJ’s claims that “Tether’s USDT loans are denominated in USDT so the company has suffered a drop in the value of its stablecoin”:
“WSJ completely misses the mark here. Because he thinks USDT is the collateral that supports him. Tether’s secured loans are heavily collateralized and even backed by Tether’s additional equity if needed.”