Tether Responds to WSJ’s Damaging Report
In a recent blog post, the stablecoin issuer Tether said that The Wall Street Journal’s recent report included “fake facts.”
The WSJ asserts in a story published on Sunday that simply a 0.3% decrease in Tether’s assets may render the contentious stablecoin issuer “technically insolvent,” meaning that its assets barely exceed its obligations.
Tether asserts that the research is part of a “plan” to damage its reputation, despite the fact that it is not the only stablecoin issuer with narrow margins.
According to the WSJ, Tether’s new attestation was approved by its own accounting firm. BDO International is the fifth biggest auditing firm in the world, and its Italian unit has “unrestricted access” to any material throughout the attestation process.
In reaction to the study, Tether asserts that it is erroneous to imply that their company is “unprofitable.” In recent months, the business claims to have effortlessly redeemed billions of tokens.
Due to the Terra mayhem in May, the market capitalization of Tether has decreased dramatically. Additionally, the stablecoin issuer disputes that hedge funds have established short positions in USDT. The WSJ reported at the end of June that sophisticated investors were interested in shorting the stock.