Deutsche Bank Slammed by Tether

Business Recorder

Hey folks.

The largest stablecoin, Tether, has blasted Deutsche Bank for a recently published analysis claiming that stablecoins, including its USDT token, which is pegged to the dollar, may experience a "peso moment" that would completely disrupt the cryptocurrency market.

According to Deutsche analysts in a May 7 research report on stablecoins, the 2022 crash of TerraUSD (TUSD) which experienced at least $40 billion wiped from the market in a few days, as justification for broader criticism of stablecoin products with dollar pegs.

Analysts from a study of 334 currency pegs from the last 223 years found that 49% of the fixed currencies collapsed over the course of their median lifespan of approx 8 to 10 years.

According to analysts, in the crypto industry, most of the pegged assets will experience substantial "turbulence" coming from speculative sentiment and in the end experience some sort of de-pegging event.

Analysts from Deutsche also noted lack of transparency on the part of Tether concerning its reserves describing the company's solvency status as "questionable".

The Deutsche bank report was lashed out by Tether stating it "lacks clarity and substantial evidence" and depends on "vague assertions rather than rigorous analysis".

A spokesman for Tether stated that although the research makes an effort to predict stablecoin declines, it is unable to "provide concrete data to support its claims."

Over the transparency of its reserves, Tether has been the subject of criticism. However, the company has released multiple financial attestations suggesting it holds over $110 billion in fiat-denominated reserves - Nevertheless, some critics argue that it differs from a financial audit.

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Posted Using InLeo Alpha