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On July 8, 2022, Tether, the company behind the world’s largest stablecoin, liquidated a loan to cryptocurrency lender Celsius, which “had no loss to Tether.” I made it clear. According to Stablecoin issuers, Bitcoin loans to Celsius were “more than 130%” and “over-collateralized.”
Company Tether Have Informed the public The company “has never endangered the integrity of its reserves and will never do so.”Tether said on Friday it had an investment CelsiusA confused crypto lender, investment was a “minimal portion of shareholders’ equity.”
Bitcoin-denominated loan (BTC) Was taken out by Celsius When Tether He said the loan was more than 130% secured. “The decision to clear the collateral to cover the loan was part of the initial terms of the agreement between the two entities and was reaffirmed in writing prior to the start of the clearing event,” Tether said in detail. Said to. The stablecoin issuer added:
This process was carried out in a way that minimized the impact on the market. In fact, once the loan was covered, Tether agreed to return the rest to Celsius. The position in Celsius was liquidated without any loss to Tether.
In the company’s blog post, Tether leverages a risk management process: “While media, critics, and the community mistakenly stick to Tether, other lenders, including celebrities in the field, have collateral. It blatantly provided a few lending facilities. ” This type of lending practice goes against the spirit of tether and the company’s “strict regulatory practices.”
Meanwhile, in the past few weeks, many cryptocurrency companies have been exposed to companies such as Cryptocurrency and the cryptocurrency company Three Arrows Capital (3AC). The founder of Keyfi Sue CelsiusThe NFT whale, also known as “0xb1”, has accused the company of being a “Ponzi scheme” and allegedly allowed “naked exposure to the market” for the entire portfolio.
More Blockchain.com was reported this week Lost $ 270 million Like 3AC exposure and crypto companies Voyager Digital, BlockfiBabel Finance, and bold All were affected by 3AC’s financial problems.
Today, Stablecoin has a market capitalization of about $ 154 billion, worth $ 65.9 billion. USDT It is managed by tether. Over the last 24 hours, there has been a global trade volume of $ 100 billion across the crypto market, USDT Order that volume of $ 66.6 billion.
Tether’s blog post on Bitcoin loans in degrees Celsius highlights how the company has been criticized by critics over rumors and speculation. “Critiques claiming Tether’s contradictions have no clear understanding of how lending, borrowing, and risk management work,” concludes Friday’s Tether blog post.
What do Tether think about clearing the Bitcoin loan issued by Celsius? Please tell us what you think about this subject in the comments section below.
Image credit: Shutterstock, AIXabay, Wikicommons
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