Today, June 15, the issuer of one of the most in-demand stablecoins (USDT), Tether, released a denial of rumors regarding the portfolio of commercial papers that make up USDT's coverage reserves. Tether also said there was no exposure to the CeDeFi platform Celsius and crypto hedge fund Three Arrows Capital (3AC).
According to the rumors, which were later denied by the company, Tether's commercial paper portfolio consisted of nearly 90% Chinese and other Asian securities and traded at a 30% discount due to market conditions. Tether and its spokesman, Paolo Ardoino, denied the rumors, calling them an attempt to create fear, uncertainty and dump.
Ardoino also stated that Tether has reduced nearly 50% of its reserves in commercial paper since March 31, with only $8.4 billion remaining as of the end of June. He also stated that the company's exposure in commercial paper will gradually be reduced to zero in future periods.
2/— Paolo Ardoino (@paoloardoino) June 15, 2022
It's insane how much FUD is spread by hedge funds interested to cause was further hell to make some extra bucks.
Pay attention and always ask yourself: who benefits from this
As for Celsius, it was stated that as with any other borrower, Tether was overcollateralized and, therefore, the position of the now infamous CeDeFi platform was liquidated, with no loss to Tether itself. Nevertheless, despite the absence of any credit relationship with Celsius, Tether still has investments in the platform made with its own funds.
With Three Arrows Capital, the situation, according to Tether, is even simpler because, according to the latter, no debt obligations were provided to it. Therefore, these rumors are also categorically incorrect. Recall that Three Arrows Capital fund faces the risk of massive liquidation of its ETH positions as a result of a possible attack.