Tether Has No Links To Genesis Global Or Gemini Earn
The stablecoin operator said that it is crucial to emphasize the dependability of its reserves “at a time like this.” Historically, Tether has faced challenges with transparency.
Tether made a brief statement on November 16 stating that it has no exposure to institutional crypto lender Genesis Global or the Gemini Earn programme in response to the news that Genesis Global and the Gemini exchange have froze withdrawals. Genesis Global is the lending partner for Gemini Earn, which bears interest.
Tether, seeking to distinguish itself from crypto groups infected by a contagious disease, stated:
“At a moment like this, it is essential to emphasize that [Tether’s] reserves have shown consistent resilience amid the black swan occurrences that have defined the market over the last year.”
Tether, the operator of USDT, the biggest stablecoin and the third-largest digital currency by market value, temporarily lost its dollar peg on May 12, at the start of the cryptocurrency market crash.
The November 16 release, according to Tether, was “part of Tether’s ongoing efforts to increase transparency.” Tether has rejected attempts to require it to demonstrate the backing of its stablecoin, losing a lawsuit launched by the New York Attorney General’s Office in February 2019 to provide this information. As part of the settlement, Tether engaged BDO Italia in July to undertake monthly evaluations and attestations of its reserves for public publication.
Throughout the year, the stablecoin has made public its decrease of commercial paper reserves to zero.
Genesis Global tweeted on November 16 that it was temporarily stopping redemptions and new loans owing to “market turmoil” caused by FTX’s demise. Gemini said it will be unable to fulfil client redemptions for five days after the statement by Genesis Global.
The collapse of the FTX exchange has sent fresh waves of anguish across the cryptocurrency markets, which may persist for months.
