The FTX bankruptcy will not affect USDT, although Alameda Research is among the largest issuers of this stablecoin. Tether’s reserves have remained intact and the company guarantees very strong USDT resistance regardless of market conditions.
USDT, 8 years of stability
” Tether was designed to withstand the staggering volatility of the cryptocurrency markets. While FTX’s situation has been unique in many ways, it does not pose a risk threat to Tether or USDT. »
This is only an excerpt from the article published on Tether.to through which the company demonstrates its resistance to the fall of FTX.
” Tether continues to operate normally and process redemptions whenever requested. Tether has no exposure to FTX or Alameda (and no exposure to Genesis either) “, she added.
Alameda, a large issuer of USDT
The fact that Alameda, the company founded by Sam Bankman-Fried at the age of 25, has sunk worries investors. For Tether, Alameda did send USD to Tether before, and Tether issued USDT on a 1:1 basis to match the amount sent.
As for the USDT available to Alameda, Tether suggests exchanging it for USD if need be.
Tether also claimed that it has never loaned USDT to Alameda. This was unfortunately the case of Celsius, which assigned some to FTX against TTF as collateral. So, during the Celsius breakup, and for sure Terra, “ Tether operations were not disrupted “.
What about Tether’s relationship with Solana (SOL)?
On this point, Tether had reversed the recent decisions of Binance and OKX to temporarily suspend USDC and USDT deposits on the blockchain. The close ties between FTX, Alameda and Solana would have motivated them to do so. In addition, Solana found an alternative to circumvent this problem by proposing to fork the Serum code.
Tether clarified that in these difficult times, USDT will not lose its peg to the dollar, whether on Solana or other blockchains. It has been 8 years since USDT maintained its stability, the failure of FTX and Alameda will not affect it.
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