By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
IndebtaIndebta
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
IndebtaIndebta
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
Indebta > Markets > Crypto > El Salvador’s Bitcoin Mining Industry Sees Tether Join its $1 Billion Venture
Crypto

El Salvador’s Bitcoin Mining Industry Sees Tether Join its $1 Billion Venture

News Room
Last updated: 2023/06/06 at 1:30 PM
By News Room
Share
4 Min Read
SHARE

After the massive losses that followed the collapse of the crypto exchange FTX, users lost confidence in lending, custody, and cryptocurrency service providers. 

The fear of losing assets, as with FTX, plagues people’s minds after the commotion. 

Some experts believe it will take a while for fear, uncertainty, and doubt (FUD) to clear from people’s minds.

It is a critical time for crypto firms as many are experiencing the effects of the FUD caused by the FTX collapse. 

Many of them are struggling to gain back customers’ trust. In this light, Tether has pledged to stop lending funds from its reserves. 

The largest stablecoin issuer reasoned that restoring consumers’ faith in the crypto market is critical.

Tether Debunks Rumors of Its Secured Loan Being Risky

In a December 13 press release, Tether addressed the media FUD concerning its secured loans. 

Contrary to the circulating rumor, Tether assured that its secured loans are fully-collateralized and backed by “extremely liquid assets.” 

It also revealed its plans to stop the loan services throughout 2023.

According to the firm, the so-called secured loans operate like private bank loans with collateral. 

But in contrast to bank loans that use fractional reserves, Tether said its loans are fully-backed. 

Tether’s statement could be in response to Wall Street Journal’s claims earlier this month, alleging that the firm’s secured loans are risky. 

The journal claimed that Tether might not have enough liquid assets for loan redemption if a crisis occurs. 

It wasn’t the first attack Tether has received from the Wall Street Journal. 

Tether Faces Repeated FUD Attacks From the Wall Street Journal

In August, the media outlet alleged that Tether could be technically insolvent if its assets drop just 0.3%. However, at that time, Tether refuted the statement. 

The stablecoin issuer said it hired a top-5 account firm to increase the legitimacy and transparency of its financial attestations.

Following Tether’s attestations, 82% of the firm’s reserves were held in “extremely liquid assets.” 

In October, Tether removed the commercial paper from its reserves and replaced it with US Treasury Bills in response to more media FUD. 

In the latest statement, Tether said it would reduce its lending services without losses and focus on promoting transparency and accountability. 

Tether is determined to prove the media wrong through its resilience, transparency, and accountability. 

Tether remains the leading stablecoin issuer. According to CoinGeko data, Tether has about 66 billion USDT in circulation and a market share of 46.6%. 

The Tether stablecoin is trading at $1 with a 24-hour decline of -0.1% and currently ranking #3 in market capitalization.

Meanwhile, the broader cryptocurrency market seems to be experiencing a price rally. Bitcoin has gained 2.32% in the last 12 hours and is trading at $17,817.13. Ethereum has gained 3.28% in the past 24 hours and is trading at $1.323.40.

Read the full article here

News Room June 6, 2023 June 6, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Kraft Heinz explores potential break-up

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Elon Musk’s xAI seeks up to $200bn valuation in next fundraising

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Trump’s immigration agenda follows the trade template — for good and ill

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Brussels plans new tax on big companies to boost EU budget

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

US pressed African countries to take in Venezuelan deportees, Nigeria says

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

- Advertisement -
Ad imageAd image

You Might Also Like

Crypto

'Fundamental Shift' in Traditional Bitcoin Market Cycle May Be on the Horizon

By News Room
Crypto

FTX/Alameda Unstakes Over $1B in Solana – Is a Major Price Shift Coming?

By News Room
Crypto

Mastercard Launches “Crypto Credential” To Replace Wallet Addresses With Usernames

By News Room
Crypto

Polygon Executive Pivots Roles To Developing ZK Proof Tech

By News Room
Crypto

Altcoin Interest Driving South Korean Crypto Craze – Report

By News Room
Crypto

Russian Central Bank Flags Sharp Rise in Crypto-related Activity

By News Room
Crypto

BitGo’s $100M Suit Against Galaxy Gets Green Light from Delaware Supreme Court

By News Room
Crypto

Here Are Your Top Crypto Gainers Today on DEXScreener

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?