- After the collapse of FTX and the halt of withdrawals, Genesis Global Trading has mentioned bankruptcy as a potential option.
- Tether has confirmed that it has no exposure to Genesis and Gemini Earn. USDT has maintained its position in the crypto-verse.
The Crypto market is currently going through one of its worst phases. The collapse of one of the biggest crypto exchanges has impacted companies like Genesis. Crypto trading firm Genesis has a long exposure on the FTX and 3AC. Genesis has spread its contagion to its parent company, DCG and Grayscale. DCG currently owns $1.1 Bn to Genesis. Many analysts have argued that the fallout of DCG will have a worse ripple effect than FTX.
Winklevoss-run crypto operation Gemini earn has also frozen $700 million in client withdrawals as it becomes affected by the FTX disaster. But Despite various speculations, Tether has remained unaffected by the recent Genesis bankruptcy and Gemini Earn withdrawal. They have cleared their positions that they have no exposure to, and their assets are 100% backed.
Fud Surrounding Tether Continues
Many blockchain Veterans have taken a hit on Tether. They have speculated that FTX was established by the same individuals who were behind Tether. They have done so to have a supposedly unaffiliated exchange pump full of USDT and wash trade tokens. But there have always remained speculations, and Tether has always come out strong at the end. Tether has always held a strong, conservative, and liquid portfolio, which includes cash, cash equivalents, and U.S. treasuries. Meanwhile, they are focused on safeguarding their reserves. Many have tried to link Tether with the same bank as FTX in the Bahamas. But that has remained only a hoax, and no proof has come out. Meanwhile, Tether has proved the Resilience of Reserves in the Latest Attestation.
Conclusion
Tether has been the target of a lot of FUD due to its balance sheet and lack of a public audit. The company has repeatedly been under the radar for misleading statements in its books, from which they have emerged victorious. But despite so many FUDs, Tether has remained unharmed. They have done several audits and shown their reserves. They have recently clarified that they have no exposure to Genesis or Gemini Earn
Source: https://www.thecoinrepublic.com/2022/11/30/tether-remains-far-far-away-from-genesis-contagion/