- Tether confirms that it has no exposure to Genesis amid the withdrawal halt.
- Tether announced on November 16 that they are striving hard to increase transparency.
In reaction to the news that exchange withdrawals were being frozen, Tether released a brief statement on November 16 stating that it has no risk to interest-bearing Gemini Earn. Or the institutional crypto lender Genesis Global. USDT was hoping to set itself apart from other crypto organizations that were experiencing a crypto-related crisis.
Tether said that
“At this point, it is crucial to emphasize that Tether’s reserves have exhibited persistent courage in the face of the black swan events that have characterized the market this past year.”
Tether Strives For Transparency
The largest stablecoin is Tether, which oversees the USDT. And ranks third in terms of market capitalization among all digital currencies. On May 12, at the start of the market collapse, it lost its dollar peg value for a short duration.
Tether stated in an announcement on Nov16 that they are making every effort to increase transparency. Tether has rejected attempts to demonstrate the stability of its stablecoin, losing a case initiated by the Office of the New York Attorney General to make such information public in Feb.
As part of the settlement of that case, Tether hired BDO Italia to conduct monthly evaluations and proof of its reserves for public presentation in July. And Tether has confirmed via Twitter that they have no exposure to Genesis. Throughout the year, the stablecoin has made its drop in corporate debt in its reserve zero public.
Genesis Global said on Twitter on November 16 that it was halting withdrawals and new loans due to market instability induced by FTX’s demise. Following Genesis Global’s statement, Gemini stated that it will be unable to repay user bills for the next five days. The FTX exchange meltdown has triggered new waves of distress in the crypto markets that might last months.