A minor drop in Tether’s assets may make it ‘technically insolvent’

 Tether’s USDT reserves remain unclear, and the audit of its books has been pending since 2017. 

A Wall Street Journal article reported that Tether’s balance sheet showed a tight margin, and a drop of 0.3% could cause the firm to become insolvent. This could lead to a loss in investor confidence and mayhem in the market. The fall in assets could also lead to an increased rate of redemptions. 

At the time of writing, Tether’s assets stood at $67.74 billion and liabilities at  $67.54 billion – a difference of $191 million. However, Paolo Ardoino, Tether’s CTO, shoved off the fears citing that the assets are expected to grow significantly in the next few months and that the firm wasn’t at any systematic risk. 

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