In a recent development, Tether’s Chief Executive Officer has publicly criticized both the S&P Global Ratings agency and various social media influencers for disseminating what he termed as unfounded fear, uncertainty, and doubt (FUD) regarding the stability of USDt (Tether). This response came shortly after S&P issued a downgrade in its assessment of USDt’s capacity to maintain its 1:1 peg with the U.S. dollar. The ratings agency specifically highlighted concerns over Tether’s reserve composition, which includes allocations to Bitcoin and gold, questioning their liquidity and volatility in times of market stress. Tether’s CEO defended the company’s reserve strategy, emphasizing its robustness and transparency, and accused detractors of spreading misinformation that could undermine user confidence. He reiterated Tether’s commitment to upholding the peg through diversified assets, pointing to historical performance as evidence of reliability. The exchange underscores ongoing tensions between cryptocurrency entities and traditional financial institutions over valuation methodologies and risk assessments.
