Tether has condemned the false rumors regarding the portfolio of commercial papers and also connection with Three Arrows
Tether denies rumors about its reserves
Tether, the issuer of one of the most popular stablecoins (USDT), denied rumors about the portfolio of commercial papers that make up USDT’s covering reserves today, June 15. Tether also stated that it had no exposure to Celsius, a CeDeFi platform, or Three Arrows Capital, a crypto hedge fund (3AC).
Tether’s commercial paper portfolio, according to the speculations, contained roughly 90% of Chinese and other Asian securities and traded at a 30% discount due to market conditions, which the business later disputed.
The rumors were rejected by Tether and its spokesman, Paolo Ardoino, who described it as an attempt to spread panic, uncertainty, and dump.
Tether has reduced nearly half of its commercial paper reserves since March 31, according to Ardoino, with only $8.4 billion remaining at the end of June. He also claimed that the company’s commercial paper exposure will be steadily decreased to zero in the future.
Three Arrows connection is also a false rumor
The rumors about Three Arrows Capital are likewise completely false. Remember that the Three Arrows Capital fund is at risk of large ETH liquidation as a result of a hypothetical attack.
Three Arrows has been consistently unloading stETH for the past month, according to on-chain statistics. The venture capital firm now looks to be putting the ETH it has obtained into AAVE and Lido loan pools.
3AC has lost more than $30 million on Bitfinex trading in May alone, according to the Bitfinex leaderboard, falling out of first place on the platform. The fund lost over $40 million during the year.
