Stablecoin issuer Tether continues to maintain a robust liquidity cushion estimated at $3.3 billion, aimed at ensuring a stable Tether ecosystem and establishing trust among stakeholders. This surplus capital spread across 15 blockchain ecosystems is confirmed in Tether’s USDT transparency report updated on Aug. 24. The Solana ecosystem leads the pack, holding authorization for issuance worth approximately $1.57 billion, followed by Ethereum and Tron at $617 million and $353 million respectively.
Yet, amidst this solid financial position are lingering concerns about the currency’s liquidity and backing of assets, questions that have swirled ever since Tether was charged a $41 million fine by the Commodity Futures Trading Commission for misrepresentation of its reserve holdings in 2021.
Not to be overlooked is the fact that Tether’s other stablecoins – XAUT, EURT, MXNT, and CNHT – unlike USDT, do not enjoy the same liquidity cushion. The report reveals that none of these stablecoins possesses the adequate balance to sustain the 1-1 peg in times of a crisis.
In other news, Tether recently discontinued its Bitcoin OmniLayer, with the assurance of rendering redemptions available for at least a year from the discontinuation announcement. This suspension is largely attributed to mounting challenges encountered by the OmniLayer team due to a lack of popular token availability, which eventually led exchanges to swap for other transport layers in place of Omni.
Meanwhile, cryptocurrency community’s attention is also drawn to FTX, a bankrupt crypto exchange, reporting a cyber intrusion with its claims agent, Kroll. While no significant damage has been recorded, the event exposed non-sensitive customer data from specific claimants linked to the ongoing bankruptcy lawsuit. Upon detection, FTX swung into action to manage the situation, ensuring that account passwords, systems, and funds remained unaffected.
These prevail a two-fold perspective in the world of cryptocurrency. On one side, robust liquidity cushions emphasize the stellar financial performance of certain cryptos, while the other side underscores the imminent threats and challenges. The dichotomy brings to light the constant need for maintaining transparency, bolstering security measures, and ensuring liquidity to foster trust among the masses.
Source: Cointelegraph
