Tether Says USDT Reserve Remains Immune to Crisis on CEL Network
2022.06.13 18:41
Tether Says USDT Reserve Remains Immune to Crisis on CEL Network
- Tether said its USDT reserve is immune to the events impacting the Celsius lending platform.
- Binance will delist the USDT-Margined SC Perpetual Contract on June 17, 2022, after conducting an automatic settlement.
- CEL trades at $0.19, representing over a 50% decrease in 24 hours, and a 92% decrease from April 8th, when it traded at $3.
Tether, the issuer of USDT, the largest stablecoin by market capitalization, has announced that its USDT reserve is immune to the events impacting the Celsius lending platform.
They announced via their official website on June 13, 2022, following several rumors on Twitter (NYSE:TWTR) that USDT may be under attack anytime soon.
Tether noted that while they have some investment portfolios with Celsius, there is no correlation between their USDT reserves and their investment with Celsius.
In their words:
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 reserves or stability. Also, Tether lending activity with Celsiushas always been overcollateralized and has no impact on our reserves.
In other news, Binance, the largest cryptocurrency exchange, announced that they will delist the USDT-Margined SC Perpetual Contract on June 17, 2022, after conducting an automatic settlement.
Users are advised to close any open positions before the delisting time to avoid automatic settlement.
The Celsius Network is a decentralized finance (DeFi) platform and one of the largest cryptocurrency lenders, with a customer base of over 1.5 million. It announced on Sunday night, June 12, that it will pause all withdrawals, swaps, and transfers between accounts on its platform. Celsius noted that they took the actions “to put Celsius in a better position to honor, over time, its withdrawal obligations.”
At the time of writing, the network’s native token, CEL, trades at $0.19, representing over a 50% decrease in the last 24 hours. That’s also a 92% decrease from April 8th, when it traded at $3, and 97.51% from its all-time high of $8 a year ago.
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