Tether liquidates a stake in Celsius with 'no losses' to the stablecoin issuer

Depricated as of Oct 2022

Some CRYPKYP functionalities are depricated as of October 2022 and will no longer be populated until further development and future version.
Although all here is visible and interactable you can not Contribute to those articles.
Try looking at other information on the Platform and Contributing there!

Have a great day,
CRYPKYP Team

Tether liquidates a stake in Celsius with ‘no losses’ to the stablecoin issuer

Tether liquidates a stake in Celsius with 'no losses' to the stablecoin issuer
1657309093 08 Jul / 19:38

The issuer of the stablecoin has reiterated that its investment in Celsius does not affect its USDT reserves.

Tether's Bitcoin (BTC)-denominated loan to Celsius Network has been fully liquidated without a loss, relieving fears that the stablecoin issuer may have disproportionate exposure to the troubled cryptocurrency lender.

Tether claimed in a statement released on Friday that its loan relationship with Celsius eliminated any adverse risk to its core business. In particular, the BTC-denominated loan given to Celsius was 130 percent overcollateralized, and the original arrangement permitted Tether to sell the collateral to satisfy the debt.

“This process was carried out in a way to minimise as much as possible any impact on the markets and in fact, once the loan was covered, Tether returned the remaining part to Celsius as per its agreement,” the statement stated. “Celsius position has been liquidated with no losses to Tether.”

Last month, rumors about Celsius’ insolvency began to circulate when the cryptocurrency lender was forced to suspend withdrawals owing to “extreme market conditions.” As soon as the business recruited new legal counsel to advise on restructuring, details of enormous losses and liquidity concerns began to emerge.

Tether made a statement in June emphasizing that its portfolio investments in Celsius have nothing to do with the health and support of USDT, the stablecoin with the most significant market capitalization.

“While Tether’s investment portfolio does include an investment in the company, representing a minimal part of our shareholders’ equity, there is no correlation between this investment and our own reserves or stability,” the company stated on June 13. The exact same point was conveyed in Tether’s Friday statement.

USDT is the most extensively used stablecoin. However, its market share has decreased over the past year. Currently, USDT has a market capitalization of $66 billion, according to CoinMarketCap. With a market value of $55.5 billion, Circle’s USD Coin (USDC) is a close second.

Last News and Media
CRYPKYP contain links to third-party websites, resources, and advertisers. CRYPKYP does not control, sponsor, recommend or otherwise accept responsibility for any third-party content because we are not responsible for the availability of these outside resources or their contents or privacy practices. It will help if you direct any concerns regarding any third-party content to such a third party. We don't accept responsibility for the content of external websites linked to through the Site or the Services. Third-party content is accessed at the user's own risk. CRYPKYP distributes content from third-party publishers as indicated on the site from time to time mainly in Airdrops, News / Media, Whale Alerts, and Rumors. In these circumstances, CRYPKYP only provides limited stylistic input to the content. CRYPKYP does not verify and takes no responsibility for the accuracy of the content provided by any such third-party publishers.
crypkyp.com