Reflecting on the events of mid-2022, Ardoino highlighted Tether's resilience amidst challenges faced by the cryptocurrency industry. He noted that while many other cryptocurrencies were experiencing collapses, Tether managed to maintain its stability. Despite facing a surge in redemption requests during that period, Ardoino proudly stated that Tether successfully redeemed and paid out $7 billion within two days, followed by another $20 billion in less than a month.
Ardoino asserted that every Tether token in circulation is fully backed by cash reserves, including Treasury bonds, ensuring that more than 100 billion USDT can be exchanged for cash at any time. This emphasis on backing and liquidity serves as a testament to Tether's financial stability and ability to meet redemption demands.
In light of recent developments involving Digital Currency Group (DCG), Ardoino remarked on the challenges faced by the company, which is currently under scrutiny and facing legal action from New York regulators. He contrasted Tether's resilience with the troubles encountered by DCG, particularly its subsidiary Genesis Global, which had exposure to FTX and relied on FTT as collateral.
Ardoino concluded by suggesting that the idea of shorting USDT, which some had attempted, was ultimately not as wise as it seemed, particularly in comparison to the risks associated with taking FTT as collateral. This remark underscores Tether's stability and the prudence of its financial practices, even in the face of industry-wide challenges.
