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Tether: Celsius bankruptcy has no impact on USDT

 


The crisis surrounding the “crypto savings bank” Celsius has had no impact whatsoever on the crypto company Tether and its USDT stablecoin .


As Tether explicitly announced on Monday , the impending insolvency of the influential crypto savings platform Celsius will not have a negative impact on the stablecoin publisher .


According to the announcement, all loans that Tether has granted to Celsius have always been “overcollateralized”, i.e. secured beyond the actual loan value. A possible collapse would therefore not affect the Tether reserves.


The stablecoin publisher sees the problems at Celsius as an "unfortunate result of volatility and extreme market conditions".


In 2021, Celsius had borrowed nearly $1 billion from Tether , using Bitcoin as collateral. Celsius founder Alex Mashinsky stated at the time that his company was paying an interest rate of between 5 and 6% for the loan.


However, Tether is not only associated with Celsius as a lender, as the company has also invested $10 million in the crypto savings platform as an early investor. However, this funding only makes up a small part of Tether's portfolio and is therefore also not a real threat to the reserves of the stablecoin issuer. So it says:


“Although Tether's portfolio includes an investment in the company [Celsius], this represents a minimal portion of our equity. Our financial stability and that of our reserves does not depend in any way on this investment.”

Celsius surprisingly imposed a payout freeze today, June 13 , which the crypto savings bank attributes to “extreme market conditions.” The proprietary cryptocurrency had lost a whopping 50% in value the previous day.


On June 12, Celsius boss Mashinsky emphasized that rumors about payment problems on his platform and opponents are spreading fake news of this kind.

The crypto community is now extremely skeptical about the once influential platform. Some observers fear that the Celsius Network will now "collapse and wipe out the money of many investors". Because of his great success would be

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