The firm disclosed the intention to provide monthly updates on the financial reserves.
It denied the article’s assertions that the company is losing money.
As Tether put it, “unsubstantiated conclusions” have been made about the stablecoin’s reserve adequacy. Tether responded with a statement after a Wall Street Journal report raised questions about the company’s reserves. An article in the journal said that the audited financials of the corporation had been in high demand for quite some time.
The company stated:
“Tether’s disclosures have been the most honest and transparent in the market – everyone knows that we have not had an audit and they know we are working towards one. To assume that our business is unprofitable is false. According to our Consolidated Reserves Report, Tether has never disclosed any equity despite being profitable for several years.”
International Standards of Reporting
Tether’s leadership thought they were attacked because of their stablecoin holdings. Even while this range applies to other stablecoins on the market, Tether was singled out. Moreover, the firm has been open with its disclosures as it prepares for an audit, the firm claimed. It denied the article’s assertions that the company is losing money. Over $16 billion of the issued token has been redeemed with ease, the management emphasized once again.
According to the Wall Street Journal report, crypto companies are not entirely forthright with their financials. It went on to say that even if businesses did conduct audits, there would be no conventional accounting practices for digital assets. To counter this assertion, Tether has pledged complete openness in accordance with the tenet of International Financial Reporting Standards.
At the beginning of August, the company made public its partnership with the prestigious accounting firm BDO Italia. Furthermore, it disclosed the intention to provide monthly updates on the stablecoin’s underlying financial reserves.