After Genesis Global Capital ceased withdrawals due to FTX exposure, stablecoin Tether clarified that they have absolutely no exposure to Genesis or Gemini Earn.
Moreover, they let it be known that the USDT tokens are 100% backed by its reserves and that the assets backing them outweigh the liabilities.
Tether stablecoin reiterated that they have no liquidity problems and are true to their “customer first” philosophy
On 16 November, the Tether company issued a very important statement, especially at such a time. The company denied any rumors that it was exposed to institutional cryptocurrency lender Genesis Global or the Gemini Earn program.
Paolo Ardoino, Tether’s CTO, said:
“It is important at a time like this to emphasize that these Tether reserves have proven themselves by demonstrating consistent resilience during the black swan events that shaped the market last year.”
Previously, Tether has denied having exposure to FTX or Alameda Research.
Paolo Ardoino, CTO of Bitfinex and Tether, quickly silenced the possible FUD that could be created by this open allegation, clarifying that his exposure “was nil.”
On this occasion, Tether reiterated that it has a strong and conservative portfolio and no shortage of cash or cash equivalents and US Treasury bonds.
The stablecoin’s operations are business as usual, the “customer first” philosophy always applies, precisely pointing out the exclusion of exposure to further failures of exchanges, funds or blockchain protocols.
USDT has also been affected by the FTX crisis
The stablecoin Tether, along with many other cryptocurrencies, is struggling in this bearish phase of the market and primarily because of the FTX collapse.
A collapse that, as we know, resulted from CoinDesk’s examination of the exchange, which revealed that Alameda Research’s balance sheet was full of FTT tokens.
This created a domino effect on the entire rest of the crypto market.
As a result, all other cryptocurrencies, including Tether precisely, were affected by the collapse.
In fact, even Curve’s stablecoin pool is becoming unbalanced. Indeed, the vast majority, about 82%, of the pool is in USDT, resulting in less liquidity for other stablecoins. According to CoinMarketCap, in the past 24 hours Bitcoin is down 5.14% to $16,560, Binance Coin (BNB) down 4.94% to $275.13, while Ethereum ticked up +1.93% to $1,188.5. Deep in the red was the FTT token, -35.47% to $2.71.
The company’s CTO steps in to clear up any questions, explaining that the link between FTX and Tether does not exist, that the company is doing well and is ready to rise again:
“During periods of market volatility, the trading price of the exchange-listed USDT can fluctuate. This happens because there is more demand for liquidity than exists on the order books of that exchange and has nothing to do with Tether’s ability to maintain its peg or the value or composition of its reserves.”