Leading crypto firms, like Tether, are trying to ensure customers that their goods and services are immune to the FTX and Alameda viruses.
Tether, the biggest stablecoin issuer in the world, has assured that USDT on the Solana network poses no danger.
Tether published a statement on November 18 stating that Alameda-issued USDT was immune to the failure of the FTX exchange.
Solana is the third-largest stablecoin network, according to the Tether transparency report, behind Tron and Ethereum. Solana has 1.89 billion USDT, under 3% of the entire supply.
The fintech company noted that when institutional parties pay money to Tether, USDT is issued on a 1:1 ratio. This was the situation with Alameda for Tether on Solana. The report continued:
“Those reserves are still in Tether’s possession; they are not on Alameda’s balance sheet. The collateral backing Alameda’s USDT is not on Alameda’s balance sheet.”
Alameda’s only choice is to redeem the USDT and have Tether reimburse the dollars.
Tether further says it has no outstanding loans to Alameda involving the stablecoin, its reserves, or any other cash.
“The main problem countless other companies are facing is that they recklessly lent Alameda various assets relying on extremely illiquid collateral,” it explained. The business noted no leverage, a significant factor in FTX’s demise.
It also mentioned Binance and OKEx’s recent prohibitions of USDT and USDC deposits on Solana.
“USDT issued on Solana is the same as USDT issued on any other chain. The token represents a claim to $1 of Tether’s reserves and collateral.”
1/ Tether re: Alameda: Alameda sent USD and got USDt. Alameda/FTX doesn't have claims on USD. It's pure transactional. Truthers can't believe all their mighty heroes are actually the ones that destroyed half industry.
Solana’s native token has dropped a further 5.7% on the day to $13.68 at the time of writing. CoinGecko reports that SOL has lost 56% over the previous two weeks and is down 95% from its all-time high.
Ecosystem Outlook for Stablecoin:
Tether remains the top stablecoin issuer, with 65.9 billion USDT and a 45.5% market share. Its supply has decreased by 21% since May’s commencement.
With 44.1 billion USDC in circulation, Circle’s USD Coin maintains a market share of around 30%. In addition, its supply has decreased by 21% since the beginning of July.
The supply of the third-largest stablecoin by market capitalization, Binance USD, has increased by 30% since the beginning of July. With 22.9 billion coins in circulation, BUSD has a market share of around 16%.
