Transparency and reliability are two significant problems that crypto operators have always struggled with. While many are still trying to reduce the effects of this, others are making conscious and active efforts to strengthen those qualities. For example, as a stablecoin operator, Tether struggled with transparency issues. That's why they continue to make intentional efforts to prove themselves.
To do better on that part, they've made a recent move to set themselves further apart. On November 16, Tether published a brief statement stating that it has no connection to the Gemini Earn program or institutional crypto lender Genesis Global. This development followed the news that Genesis Global and the Gemini exchange were stopping withdrawals. The loan partner for interest-bearing Gemini Earn is Genesis Global.
The biggest stablecoin and third-largest digital currency by market value, USDT, is operated by Tether, which briefly dropped its dollar peg on May 12 at the start of the crypto market collapse.
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According to Tether, the revelation on November 16 was part of Tether's continuous initiatives to encourage openness. For example, Tether has fought calls for it to demonstrate the stability of its stablecoin. It lost a case launched by the Office of the New York Attorney General to publish that data publicly in February. As part of the agreement to resolve that lawsuit, Tether engaged BDO Italia in July to carry out monthly evaluations and proof of its reserves for public publication.
The stablecoin has been pretty open about reducing the amount of commercial paper in its reserves to zero during the year.
On November 16, Genesis Global tweeted that it was temporarily halting redemptions and new loans due to the market instability brought on by FTX's demise. As a result, Gemini declared that it would be unable to fulfill client redemption requests for five days following Genesis Global's declaration.
The FTX exchange's downfall has caused unrest in the cryptocurrency markets, which might last for months.
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How can Tether improve its transparency? Kindly share your thoughts in the comments section.
