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Turks are flocking to the cryptocurrency market as a safe haven against the lira's plunge. Local demand for USDT surged ahead of general elections in early May and has remained high since Erdogan's re-election as Turkey's president sparked market turmoil. In early June, the lira accounted for 10% of the total in the $1.1 trillion-a-day crypto market, after peaking at 18% in May and 4% in early 2023, according to Kaiko. % . Despite the global regulatory crackdown on the crypto asset class, the lira fared worse, falling below record lows in recent days. The Turkish lira has fallen 11% against the dollar over the past week as the central bank pulled back from intervention in the currency after the general election.
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Forbes Interview: Tether Raises $1 Billion for Renewable Energy Bitcoin Mining Project
El Salvador is getting ready to build one of the world's most significant bitcoin mining facilities using wind and solar power.
The project, which will be located west of Santa Ana, is expected to generate a total capacity of 241 MW of renewable energy to mine Bitcoin at a processing capacity of 1.3 EH/s. The project is part of a joint venture called Volcano Energy involving the local private sector, the government of El Salvador and some major crypto industry players such as Tether to increase the adoption of bitcoin across the country.
Since declaring bitcoin a legal tender through El Salvador's bitcoin law in 2021, the developing country has become the first country in the world to adopt bitcoin as an official currency. El Salvador will enter the next phase of this economic policy by launching one of the largest bitcoin mining operations in the world.
The project will fulfill President Nayib Bukele's plan to create a volcano bond. Bukele announced the return of the bonds, which were supposed to be issued through a Bitcoin mining and holding public debt program with the El Salvador government as the counterparty, returning in November 2021. However, market conditions and plans have changed since 2021.
Using Volcanoes to Mine Bitcoins in El Salvador
The new strategy will align investment plans from issuing public debt to private equity financing of Volcano Energy's plans.
Josué López, Volcano Energy's CEO, explained to reporters: "The reason behind this change is that, after carefully studying the economics of our model, we realized that equity financing is more potentially beneficial to all stakeholders than debt financing. The benefits are much greater."
But it also meant that investors in the $1 billion scheme, which had received $250 million in investment, had to dilute their stakes to share a portion with local governments, which were supposed to get 23% preferred equity participation.
“This equity-for-economic freedom approach will allow El Salvador to benefit from the project without spending a dime,” López added.
Investors will now own 27% of the income and 50% will be redistributed for the development of energy facilities and Bitcoin mining parts. The operation will take place in the village of El Shiste in Metapan. Due to its favorable geographical conditions, other power facilities in the region are powered by renewable energy, such as the Eolic Park Ventus with a capacity of 54 MW.
The project will grant them access to any energy surplus they may produce into the local grid. Volcano Energy's chief executive said the idea "helps stabilize energy supply in the region, benefits local communities and promotes a more sustainable and reliable energy supply".
This renewable approach also means that Bitcoin mining facilities will be 100% powered by green energy. According to the latest Bitcoin Mining Council data, this would account for 58% of the total Bitcoin hash rate produced using sustainable energy.
Bitcoin mining project has not been deployed yet
But despite all the hype surrounding Volcano Energy's announcement, the project is still in the pre-engineering phase. The company has selected a location for the deployment of the operation, but the design of the solar and wind farms, the approval of the final engineering plan and all aspects and requirements that this ambitious operation may imply must be fully resolved before moving forward.
Ultimately, the goal of the project is to meaningfully participate in the hash rate of the network while providing employment opportunities for talent in different roles and fields in El Salvador, we need to understand what it takes to mine Bitcoin and what capital inflows to similar projects can bring to El Salvador What.
Tether CTO: Regularly cooperate with third parties to balance USDT liquidity on different chains
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In response to Tether's new printing of 1 billion USDT on the Ethereum network, Paolo Ardoino, Tether's chief technology officer, said that this move is to support the chain swap function, "Tether regularly cooperates with different third parties (exchanges, hedge funds, etc.) , to help them rebalance their USDT liquidity on different chains. For example, since exchanges support Tether USDT on multiple chains, they may end up owning the majority of Tether USDT tokens on one chain (i.e. Tron) , but they may need to process withdrawals from another chain (i.e. Ethereum). Therefore, these third parties require a chain swap.” (The Block
In this regard, Paolo Ardoino, chief technology officer of Tether, said that the Ethereum network has replenished the inventory of 1 billion USDT. This is an authorized but unissued transaction, meaning the amount will be used as inventory for the next issuance request and chain swap.
https://www.theblock.co/post/234170/tether-mints-one-billion-usdt-ethereum
Binance announced that it will swap 750 million USDT from Tron to Ethereum tonight
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Binance tweeted that it will directly convert 750 million USDT on the Tron chain to 750 million USDT on the Ethereum chain through Tether after 20:00 Beijing time today to ensure users’ stablecoin liquidity on all chains.
Tether CTO: Market sentiment is easy to exploit, ready to deal with any amount of token redemption
https://twitter.com/binance/status/1668218926721818624
Tether CTO: Market sentiment is easy to exploit, ready to deal with any amount of token redemption
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According to previous reports, the Curve platform's stablecoin 3 pool has a severely skewed proportion, of which USDT accounts for 72.87%.
https://twitter.com/paoloardoino/status/1669223742831042562
Tether responds to doubts about its success and continued commitment to transparency
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Earlier this year, Tether completed its reporting obligations to the New York Attorney General's Office under the terms of the 2021 settlement. The settlement calls for quarterly reporting of Tether's reserves for two years. Tether fully complied with this obligation and there is no indication of incomplete disclosure or insufficient reserves. We are pleased to have fulfilled our obligations under the settlement agreement. Today, Tether is stronger than ever, with a market capitalization at an all-time high.
Shortly after the 2021 settlement, CoinDesk requested the public disclosure of material related to Tether's first quarterly report under New York's Freedom of Information Act. This morning, the New York Attorney General's Office provided CoinDesk with a response document. They provided the documents because Tether decided to drop its appeal to CoinDesk.
Tether initially initiated these procedures to prevent the public dissemination of confidential customer data and to prevent the use of sensitive business information that could be exploited by malicious actors. However, our ongoing and demonstrable commitment to transparency means we must prioritize openness over further time-consuming fruitless U.S. lawsuits that distract from real issues facing our communities.
In the disclosed documents, Tether’s statement shows that our reserves are fully transparent, as evidenced by our publicly disclosed independent third-party assurance certificates. Furthermore, the report shows how Tether applies top-notch asset management concepts: short-term investing and diversification, which is clear from the investments listed in various bank statements. Our biggest critics have written a lot about the reliability and authenticity of Tether support. Accordingly, these materials should debunk all unfounded doubts and uncertainties. In addition, these materials are outdated and do not accurately reflect the current state of our reserves nor account for changes in our ecosystems. Among other actions, Tether will reduce its commercial paper holdings to zero by mid-2022 and significantly reduce its secured loan portfolio, with the goal of reducing it to zero in the coming months.
We found that the attack on USD₮ via DeFi and centralized exchanges occurred on the same day that the material was handed over to CoinDesk. The timing raises our questions. Nonetheless, Tether has nothing to hide and we are confident in the accuracy of our financial data. While our sensitivity to government agencies releasing classified data (at least related to Tether's reserves) is now lower than in 2021, we remain vigilant about customer data. While we cannot count on fair reporting from CoinDesk, which often misrepresents Tether's position in the market in favor of its main competitors, we urge them to put aside their prejudices and refrain from publicly sharing any past or current client names, thereby shifting risk to anyone in the community.
Tether is proud to be the leading stablecoin and a force for good in the community. We are proud of the deep liquidity of our reserves, our strength and stability, having weathered the many black swan events that have disrupted the cryptocurrency industry and traditional finance. We will always protect our customers, our employees and our communities from attack.
https://tether.to/en/tether-on-FOIL-and-continued-commitment-to-transparency/
Tether CTO: Bitcoin and Gold Are Equivalent
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Tether CTO Paolo Ardoino said in an interview that there is a deep connection between gold and "digital gold" - Bitcoin, which has been used as a store of value for centuries as a hedge against inflation and economic uncertainty. , by contrast, fiat currencies like the U.S. dollar can be potentially volatile."So, if you're going to sell your bitcoins for other assets, I personally think it's better to exchange them for gold than for dollars."（Cryptonews）
Tether responds to everything
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The New York State Attorney General's Office (NYAG) disclosed a document about Tether to the media.
This document is the first quarterly report provided by Tether to NYAG after Tether and NYAG reached a settlement in 2021. Since the material contains a lot of information that was previously unknown to the public (such as holding some commercial papers of Bank of China, Customer relationship with Celsius Network), so shortly after the publication of this material, it caused an uproar in the market.
At around 8 o'clock tonight, Beijing time, Tether officially released a long article, giving a detailed response to the content of the document and the FUD rumors.
Tether statement
Since Tether's settlement with the New York State Attorney General's Office, we have fulfilled our quarterly reporting obligations. Tether remains committed to transparency and puts the privacy and security of its customers first.
Following the settlement, CoinDesk requested that Tether submit materials related to its first quarterly report under the Freedom of Information Act (FOIL). Tether has previously opposed such disclosures to prevent the public dissemination of confidential data involving customers and sensitive proprietary information — information that could be exploited by malicious actors. After outcry, Tether dropped its objection, allowing CoinDesk and other media access to the documents as evidence of its commitment to transparency and openness, rather than further futile defense of various lawsuits.
Compared with two years ago, Tether's market position has completely changed. In the biggest black swan events in 2020 and 2022, Tether has proven its market leadership, showing that its reserves have high-quality liquidity, ready to be used to support redemptions of any size, such as Tether in 2022 at 48 $7 billion in redemptions were processed in an hour, almost 10% of the reserves at the time. This is a great example of our strength in the face of a stress test.
Tether’s transparency about the lending program was clear in its recent confirmation. We have always maintained our commitment to openness, and there is nothing new to reveal. Tether has never, and will never, risk compromising the integrity of its reserves. This is evidenced not only by its consistent and unhesitating fulfillment of redemption obligations, but also by its utmost transparency with regard to reserves.
Tether remains committed to maintaining the highest standards, which is reflected in our ongoing diligence in developing risk indicators and risk measurement processes. These robust mechanisms allow our investment and finance teams to thoroughly assess the risks associated with any financial interaction of a company. Tether has a firm understanding of the lending business and the regulatory environment and proactively strives to achieve and sustain its business objectives while adhering to its unshakable risk management culture.
In addition, our commercial papers are consistently rated A 2 or higher. None of our past statements have been amended in any way. We are strongly committed to accountability and upholding the highest standards.
If the published information is read and understood correctly, the public will see that Tether has demonstrated the legitimacy of its business and the adequacy of reserves. However, like a lot of things that have happened to Tether and the crypto industry in general before, information has always been intentionally isolated or distorted in order to attract more traffic.
Tether is proud to be a leading stablecoin and a force in the community, and Tether is also proud of the liquidity, stability and health of its own reserves, which have withstood many hacks that have hit the encryption industry and even the traditional financial industry. The test of the swan event. Tether will always protect its customers, its employees and the community from attacks.
As this information becomes public, Tether wishes to provide a factual reference as to what this material does and does not contain.
Included in the disclosed documents is Tether’s statement about the bank, showing the full existence of its banking relationships and reserves. This is as we have mentioned in our public disclosures and as evidenced by audits provided by independent third-party agencies.
These statements show that Tether has been applying the best asset management methods: short-term investment plus diversification, which is clearly visible from the investment list listed in various bank statements.
Since previous data from the media only provided limited old data (2 years have passed), these materials do not represent the current state of Tether. Tether has taken various steps, including reducing its commercial paper holdings to zero by mid-2022 and significantly reducing its secured loan portfolio, which it plans to reduce to zero in the coming months.
Tether is the first company to disclose the composition of its reserves and will provide quarterly certificates of reserves completed by independent accounting agencies. Tether’s proof of reserves evolves over time, providing greater transparency relative to proofs previously provided to the New York Attorney’s Office. In fact, Tether's latest proof of reserves showed a record net profit of $1.48 billion, which pushed Tether's reserve surplus to a record $2.44 billion and reduced bank cash deposits by more than 90%.
The proof of reserves also shows that Tether continues to work on reducing its backed loans to zero, now down from 8.7% to 6.5%, while Tether's U.S. Treasury holdings are also at a record $53 billion, accounting for 10% of its total reserves. More than 64%.
Tether is committed to continuing to be the transparency leader in the crypto industry, and we show we take this commitment seriously by providing information to the community and stakeholders, and demonstrating full support.
In addition, Tether regularly cooperates with law enforcement and has been involved in more than 150 investigations across four continents. In the past 18 months alone, Tether has complied with the requirements of regulators and law enforcement agencies to recover approximately $200 million in stablecoins and return them to their rightful owners.
Tether Q&A
In the end, Bloomberg, CoinDesk, or any other media outlet chooses to publish this information either because the decision was made too hastily, or because the current events (the facts) did not pay enough attention. We do not endorse this type of behavior, but our priority is our customers and our continued support of the greater cryptocurrency community.
Q1: What happened on June 15, 2023?
Earlier this year, Tether completed its reporting obligations to the New York State Attorney General's Office as part of the 2021 settlement. The settlement requires quarterly reporting on Tether's reserves for two years. Tether fully complied with this obligation, and there is no indication that disclosures were incomplete or reserves were insufficient. We are pleased to have completed our obligations under the Settlement Agreement. Today, Tether is stronger than ever, with a market capitalization at an all-time high.
Soon after the 2021 settlement was reached, CoinDesk and other parties requested release of material related to the first Tether quarterly report under New York's Freedom of Information Act. On June 15, 2023, the New York State Attorney General's Office provided corresponding documents to CoinDesk and others. They are providing these documents because Tether has decided to drop its claim against FOIL.
Q2: Why didn't Tether/Bitfinex complete the appeal?
Tether first filed these lawsuits to prevent the public from disseminating confidential customer data and to prevent sensitive business information from being exploited by malicious actors. However, our ongoing and demonstrable commitment to transparency means that we must prioritize disclosure rather than getting further bogged down in time-consuming and unhelpful U.S. litigation that distracts the community from addressing real issues.
Q3: If Tether/Bitfinex intends to disclose this information, why wait until now to stop fighting? Why choose this point in time?
At this point in the proceedings, Tether must decide whether to complete the appeal. The information disclosed today is not the same in sensitivity as it was two years ago, at least when it comes to Tether’s reserves. At this stage, we need to prioritize disclosure over further time-consuming and unhelpful U.S. litigation that distracts us from the real issues facing our community.
Q4: Does Tether/Bitfinex agree to disclose customer information to the news media?
Absolutely not. The reason Bitfinex and Tether objected to CoinDesk's disclosure under FOIL was that we wanted to prevent customer data from being made public. We call on CoinDesk and others not to publicly share past or current customer names and not put anyone in the community at physical or digital risk.
Q 5: Are you forced to do this?
totally not. Tether first filed these lawsuits to prevent the public release of confidential customer data to prevent sensitive business information from being exploited by malicious actors. We continue to call on CoinDesk and others not to publicly share past or current customer names and not put anyone in the community at physical or digital risk. We could have continued to appeal, however, our ongoing and demonstrable commitment to transparency means we must prioritize disclosure over further time-consuming and unproductive U.S. litigation that distracts the community from addressing real issues.
Q6: Tether once stated that it has no risk exposure to Chinese commercial paper?
That's wrong. Tether has always refuted rumors about its investment in Evergrande. Again, this is simply false, and these disclosures prove it.
Q7: Okay, but why do you have so much exposure to Chinese commercial paper?
Tether's exposure to Chinese commercial paper is mainly in the banking industry, but all Chinese papers have good liquidity and are issued by well-known issuers in the international commercial paper market. All of these notes have stable issuers, and many are held in conservative portfolios by the world's largest investment managers. These BOC-related commercial papers are rated A 1 or higher.
Also, it’s worth noting that Tether reduced its commercial paper holdings to zero last year. Tether has not lost a penny on any commercial paper, including Chinese commercial paper.
Q 8: What role does Bitfinex play in the reserve adequacy ratio?
Bitfinex was a borrower on an interest-bearing loan from Tether, which was prepaid in full in 2019. This lending facility is now closed and will not be reopened. As a regular user, Bitfinex is also Tether's favorite option for buying Bitcoin.
Q9: Is the collateral wallet controlled by Tether? Who are the clients providing these collaterals? How is the collateral valued?
Collateral wallets are fully controlled by Tether. Collaterals are valued at market prices, and an effective margin call system has been implemented. Tether previously disclosed lending transactions with some large Tether customers in independent, third-party assurance statements. These borrowings are all over-collateralized, and Tether has never lost a dime on these borrowings, unlike some people in the traditional financial industry and elsewhere in the community who engage in "short lending". Tether stands for financial freedom and does not disclose the names of its customers to protect their privacy. We urge anyone who receives such information not to disclose wallet addresses, names and other identifiable information that may compromise the safety, security and privacy interests of third parties.
Q1 0: Are there indeed several customers whose personal and business accounts were closed? Should these accounts ever be public?
We regret that these names may be made public by the media, as Tether believes that the privacy of customers should be protected. It’s worth noting that, if made public, this information would not be made public by Tether, but by the New York State Attorney General’s Office and the media. We do not wish to comment on any individual relationship, but each client has passed the rigorous compliance checks and ongoing monitoring required by Tether's compliance policy.
Q1 1: Ok, if you guys are so transparent, can you share the file with us?
Can't. We have dropped requests to block CoinDesk and other media outlets because disclosure outweighed continued litigation. However, this does not mean that we are actively releasing this information. We continue to believe that information in these disclosures may be used to disclose the identity of customers, both current and future customers. In addition, our Compliance Policy may be used to circumvent our controls and violate our Terms of Service.
https://tether.to/en/Everything-You-Need-To-Know-About-What-We-Shared-With-NYAG/
