Fun

Tether slams Deutsche Bank over suggestion its stablecoin could fail

News Feed - 2024-05-10 10:05:03

Tom Mitchelhill7 hours agoTether slams Deutsche Bank over suggestion its stablecoin could failAnalysts at Deutsche Bank also argued Tether’s solvency status is “questionable” which the stablecoin firm said is “ironic” considering the bank’s own history with fines.1720 Total views4 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksStablecoin giant Tether has slammed Deutsche Bank over a newly released report suggesting that stablecoins — including its dollar-pegged token Tether (USDT) — could witness a “peso moment,” that would wreak havoc on the crypto industry. 


In a May 7 research report on stablecoins, Deutsche analysts cited the 2022 collapse of the Terraform Lab’s algorithmic stablecoin TerraUSD (TUSD) which saw at least $40 billion wiped from the market in a few days, as cause for wider criticism of dollar-pegged stablecoin products.


From a study of 334 currency pegs from the last 223 years, analysts found that 49% of fixed currencies failed over the course of their median life span of approximately eight to ten years.42% of European consumers believed stablecoins would fail eventually. Source: Deutsche Bank


The analysts concluded that most of the pegged assets in the crypto space will experience significant “turbulence” stemming from speculative sentiment and eventually suffer some kind of de-pegging event.


“While some may survive, most will likely fail, particularly due to the lack of transparency in stablecoin operations and vulnerability to speculative sentiment.”


Deutsche analysts also noted Tether’s lack of transparency concerning its reserves and described the firm’s solvency status as “questionable.”


However, Tether lashed out at Deutsche’s report, saying it “lacks clarity and substantial evidence” and relies on “vague assertions rather than rigorous analysis.”


In comments shared with Cointelegraph, aTether spokesperson said that while the report attempts to forecast the decline of stablecoins, it failed to “provide concrete data to support its claims.”


“Moreover, its comparison to Terra, an algorithmic stablecoin, is misleading and irrelevant to the discussion on reserve-backed coins,” said Tether in response.


“Questioning the credibility of any financial institution, especially one with Deutsche Bank"s track record, seems ironic. Deutsche Bank"s history of fines and penalties raises doubts about its own standing to critique others in the industry.”


Related:Tokenizing money is the ‘greatest innovation’ after fiat — Tether co-founder


Tether has been the subject of criticism over the transparency of its reserves.


However, the firm has released several financial attestations, which suggest the firm holds over $110 billion in fiat-denominated reserves — though some critics argue it’s not the same as a financial audit.


Audits are conducted to look at data, risks, or compliance issues that may not have been known before the audit took place while an attestation is a more simple tool used to take a snapshot of certain data.


In 2021, the New York Attorney General settled with Tether to pay an $18.5 million fine and barred it from practicing in the state for allegedly misrepresenting the degree to which its reserves were backed fiat collateral.


Despite never releasing an official audit since the firm’s inception in 2014, Cantor Fitzgerald CEO Howard Lutnick says he believes Tether “has the money,” on hand.


Magazine:Lazarus Group’s favorite exploit revealed — Crypto hacks analysis# Cryptocurrencies# Business# Adoption# Deutsche Bank# Tether# StablecoinAdd reaction

News Feed

Zhiyuan Sun6 hours agoHashKey signs MOU for crypto exchange insuranceThe policy would potentially cover both the exchange"s hot wallets and cold storage addresses.1479 Total views23 Total sharesListen to article 0:00News
EU publishes draft rules for stablecoin issuer complaint procedures
Amaka Nwaokocha1 minute agoEU publishes draft rules for stablecoin issuer complaint proceduresThis regulatory framework for stablecoins results from a joint collaboration between the European Banking Authority and the Eu
Bitcoin Loss Holders Highest Since October As BTC Crashes To $87,000
Este artículo también está disponible en español. On-chain data shows the number of Bitcoin loss addresses has shot up following the cryptocurrency’s dive toward $8
Tom Mitchelhill3 hours agoFed inspector blames crypto focus, nepotism for Silvergate Bank collapseAn investigation into Silvergate Bank found that its collapse was brought about by a dependency on crypto deposits and “
Ontario Regulator Lets Security Token Startup Test Secondary Trading
The Ontario Securities Commission (OSC) is allowing a tokenization startup to facilitate secondary-market trading of its tokens by giving the firm regulatory relief for a short time.
Price analysis 8/9: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB
Rakesh Upadhyay7 hours agoPrice analysis 8/9: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIBBuyers are struggling to build upon Bitcoin’s sharp recovery on Aug. 8, indicating that the bears remain active at higher
CBDC Could Be ‘Holy Grail’ of Cross-Border Payments, ECB Says, Sees Bitcoin as Less Credible
CBDC Could Be ‘Holy Grail’ of Cross-Border Payments, ECB Says, Sees Bitcoin as Less Credible Several solutions can potentially improve cross-border payments significantly and c
EigenLayer’s EIGEN token unlock looms, futures tip a $6.8B FDV
Alex O’Donnell6 hours agoEigenLayer’s EIGEN token unlock looms, futures tip a $6.8B FDVEigenLayer’s EIGEN token is scheduled to unlock at 5:00 am UTC on Oct. 1 and will start trading on exchanges such as Binance so
Grayscale’s Mini Bitcoin ETF ‘cheap’ fees are ‘hypothetical’ — analysts
Ciaran Lyons7 hours agoGrayscale’s Mini Bitcoin ETF ‘cheap’ fees are ‘hypothetical’ — analystsGrayscale"s new Mini Bitcoin ETF will be around ten times cheaper than GBTC"s fees, but Bloomberg ETF analyst Eric
Vitalik Buterin says crypto regulations have created ‘anarcho-tyranny’
Tristan Greene3 hours agoVitalik Buterin says crypto regulations have created ‘anarcho-tyranny’The Ethereum co-founder says we’d all be better off with either anarchy or tyranny but not both.1603 Total views1 Total
Derek Andersen2 hours agoHouse committee chairman threatens SEC chair with subpoena, but not over cryptoU.S. House Oversight and Accountability Committee chair James Comer thinks Genlser is stonewalling him. Crypto suppo
Tony Hawk Partners With the Sandbox to Open a Skate Park in the Metaverse
Tony Hawk Partners With the Sandbox to Open a Skate Park in the Metaverse Tony Hawk, one of the most popular skateboarders in the world, is planning to build a skateboard park in t