Tether, the operator of the USDT stablecoin, on Wednesday derided speculation that the token is backed by low-rated debt.
The firm said in a press release that recent “rumors” that the portfolio used to back USDT consists of Chinese or Asian commercial papers are “completely false.”
It also denied any exposure to beleaguered lender Celsius, and crypto hedge fund Three Arrows Capital– both of which face a deluge of liquidations due to falling crypto prices.
Tether, which is operated by crypto exchange BitFinex, said that the rumors are being circulated to “generate additional profits from an already stressed market.” But the firm did not specify the where and how these “rumors” were being circulated.
Tether’s comments come amid one of the worst crypto downturns seen in recent history, with both Bitcoin and Ethereum losing a significant amount of value. USDT has also fallen slightly below $1.
