KEY POINTS

  • Tether is the world's largest stablecoin by market value
  • It has been fighting the spread of "false information" by "naysayers" over the past months
  • USDT was trading up 0.02% at $1.00

After finding stability for the first time in more than two months, Tether (USDT), the stablecoin designed to be worth a dollar, has released a fresh set of details to preserve its reputation and combat "fake news."

In a blog published Wednesday, Tether categorized the spread of false information as a major threat similar to what is brought by cyberattacks, scams or hacks. The company also called out "naysayers who continue to spread falsities about its commercial paper holdings" as "wrong."

According to the asset-backed crypto stablecoin, its portfolio does not hold any Chinese commercial paper and its total commercial paper exposure was only around $3.7 billion from $30 billion in July 2021. Tether said it has "plans to further decrease to ~200M by the end of August 2022 and to zero by the end of October/early November 2022."

Smartphone with Tether logo is placed on displayed U.S. dollars in this illustration taken, May 12, 2022.
Smartphone with Tether logo is placed on displayed U.S. dollars in this illustration taken, May 12, 2022. Reuters / DADO RUVIC

The statement was published in response to the FUD (Fear, Uncertainty and Doubt) making rounds online, accusing the company that its portfolio is 85% backed by Asian or Chinese commercial papers. The asset-backed crypto stablecoin denied the allegation in June and called it "completely false," but it seems that the rumors need more than that to stop.

Last month, Tether CTO Paolo Ardoino claimed crypto hedge funds and traders had launched a "coordinated attack" against the USDT after the historic implosion of the algorithmic stablecoin of Terra UST. "Tools: USDT/USD perps (the perfect attack vector that offers an asymmetric bet), spot short selling, DeFi pools unbalancing, ...Goal: create enough pressure, in the billions, causing tons of outflows to harm Tether liquidity and eventually buy back tokens at a much lower price," Ardoino said on Twitter.

The latest blog to combat false information was released after Tether regained its dollar peg on July 20. The world's largest stablecoin by market value has since remained stable despite the myriad of bad publicity thrown against it.

"Tether is determined to lead the stablecoin market through the next wave of adoption and it will do so proudly regardless of critics and rumors," the blog read.

USDT was trading up 0.02% at $1.00 with a 24-hour market volume of $67,783,090,732 as of 4:02 a.m. ET on Thursday, based on the latest data from CoinMarketCap.

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