Amid rumours of insolvency at crypto exchange FTX and worries about the financial conditions of Alameda Research, we would like to first and foremost, act as a mouthpiece for the entire crypto ecosystem and reiterate that one crisis does not make an industry. 

Regardless of the volatility that this incident may have set off, cryptocurrency and blockchain technology are fostering a revolution in financial inclusion, transforming a broken model that doesn’t work in the modern world. 

Secondly, we would like to confirm that at this time, Tether has absolutely no credit towards FTX or Alameda Research. Tether is completely unexposed to Alameda Research or FTX.

Tether tokens are 100% backed by our reserves, and the assets that are backing the reserves exceed the liabilities. Tether holds a strong, conservative, and liquid portfolio, which includes cash, cash equivalents and U.S. Treasuries. Tether will continue to focus on safeguarding those reserves as it has done for years. 

While the situation with FTX has caught many people by surprise given their reputation and size, FTX is not indicative of the practices of all substantial players in the industry. Tether has been committed to, and has delivered on its commitments, strengthening its balance sheet and improving the quality and liquidity of its collateral wherever possible.

As market conditions change, Tether has adapted and grown with them. We are proud to say that the vast majority of Tether's reserves are now U.S. Treasuries. This puts Tether in a strong position to navigate any volatility that may come.

In some ways, it is ironic that critics have been waiting for years to see Tether fail in the way so many others have. Not only has Tether continued to navigate countless black swan's without issues, but these same critics missed countless massive failures while focusing on Tether. Maybe they will one day ask themselves the question of why Tether continues to serve its users and the communities when few others can.

This morning, due to a data issue that stemmed from CoinGecko’s API connection with a select few exchanges, the Tether peg appeared to have dropped below $1. Tether did not depeg. The price discrepancy of USD₮ existed there and there alone while on Binance, Bitfinex, and Coinbase it was trading within 10bps from parity. The data issue has already been resolved by the Coingecko team.

Time and time again we find ourselves defending against irrational thinking and Tether FUD when the simple fact of the matter is that many do not understand simple market mechanisms and the way Tether works. 

During periods of market volatility, the trading price for USD₮ that is quoted on exchanges may fluctuate. This happens because there is more demand for liquidity than exists on that exchange's order books and has nothing to do with Tether's ability to hold its peg nor the value or makeup of its reserves. While this was NOT the case this morning, industry critics and skeptics alike have done themselves an injustice by remaining uninformed and jumping to conclusions.

Tether has almost $70 billion dollars of collateral which it can redeem USD₮ against. No exchange’s order book has anything remotely resembling that amount of liquidity. Ultimately, USD₮ maintains its peg because of Tether’s redemption facility for USD₮ and the collateral behind it, not because the price of USD₮ generally trades at 1$ on exchanges. In fact, USD₮ generally trades at $1 on exchanges because investors know Tether’s redemption facility is reliable. 

Tether has never turned down a redemption requisition for USD₮. Many would do well to remember that during countless black swan events Tether not only maintained its peg but honored every redemption requested. 

This year alone, the Tether was able to fulfill redemptions for 10% of its outstanding liabilities within 48 hrs. This is unheard of - no bank in the world has processed the withdrawal of 10% of its outstanding liabilities within a day. Furthermore, Tether fulfilled withdrawals for $20 billion within 30 days which was 25% of reserves. Withdrawal requests for far less than this have resulted in some of the largest bank runs in history and yet Tether was able to do so effortlessly.

Trust is built over years, but can be lost in moments. It's easy to wonder who else could fail if large and trusted players suddenly go under. Tether will continue to dispel fears and speak to the concerns of the community. We will continue to be here by your side, fighting for the potential contained with a decentralized monetary system.

Tether continues to lead the industry in both transparency and security, never wavering and providing a safe haven for all.