Tether in Bloomberg Articles Looks Like a Problem For the Industry

As we wrote earlier, Tether often finds itself in the media spotlight. More recently, Tether responded to the attacks of journalists from the Wall Street Journal, but the problems with the press do not end there.

On December 14, Bloomberg published an article in which, once again, referring to experts, they pointed out the unreliability of Tether, and talked about the collapse of the company, which may be even more important than the collapse of FTX.

“A handful of hedge funds are now turning their focus back to the $66 billion stablecoin, which they warn could be the next crypto catastrophe — one that would make the implosion of Bankman-Fried’s FTX exchange look small in comparison.” - the article says.

One of the key points in the article was about Tether's short trades. Quoting its sources, Bloomberg writes that Tether's short positions are risky and unreliable. Regarding this part of the article, Tether CTO, Paolo Ardoino commented on it on Twitter.

Another central topic of the article was the FTX and Tether connection. Journalists point to banks whose clients were both FTX and Tether, indicating that lawyers working for the exchange and for Tether were previously employees of a poker site. In general, journalists were clinging to any detail that connected FTX and Tether, but could not find anything significant in these connections.

Tether, in turn, responded to journalists by posting a message on its official website. The company pointed out the incompetence of the Bloomberg editorial board in covering crypto news, and also once again stated that there are no special ties or agreements between Tether and FTX. The Tether team is also confident that regulators will confirm this information during the FTX investigation.

“No special deal whatsoever was established between FTX/Alameda and Tether. Any allegation in this respect is categorically false and we remain absolutely sure that the multiple regulators working on the FTX case will confirm the same. It should be noted that Alameda was a prominent customer of all the stablecoins in the market,” - writes Tether.

But it seems that Bloomberg journalists were not going to stop and continued to put out publications questioning the reliability of Tether. Less than a week after the publication of the article described above (December 19), journalists released an article with the title: “Why Tether and Stablecoin USDT Have Become a Big Crypto Worry”.

The title of the article directly screams that the first among all stablecoins is a threat to the entire industry. Further in the article, the journalists again foreshadow the problems of the crypto market, which may be triggered by the fall of Tether, if it suddenly happens.

“USDT, the stablecoin issued by Tether Holdings Ltd., isn’t the most valuable cryptocurrency or the most likely to make you rich… It’s also become a focus of concern in the wake of the collapse of the FTX exchange, whose knock-on effects continue to reverberate throughout the sector. If USDT stumbles, the risk of broader turmoil across already troubled crypto markets could rise significantly.” - the article says.

However, journalists are watching not only Tether. As you already know, the most popular crypto exchange Binance has been experiencing difficulties lately. In this regard, Bloomberg has issued several articles a week about them, highlighting their problems.

We can assume that the media will continue to mention Tether in their articles, so we will continue our observations and tell you about the news.