In a recent statement, Tether publicly confirmed that it is not exposed to Gemini Earn or Genesis Global.
Genesis Global and Gemini Exchange recently announced that they will halt user withdrawals temporarily. They will do so becayse the company is facing liquidity issues due to large recent withdrawals. These withdrawals came as a result of the FUD caused by FTX. Hence, Genesis had to cease withdrawals because it was unable to user demand for money. Nonetheless, Tether reaffirmed to its users that it should not be affected by Genesis or Gemini given that it is not exposed to any of them.
Users urged Tether to be clear about this, given that previous market turmoils led to USDT de-pegging from the USD. To illustrate, when Terra (LUNA) crashed, USDT temporarily de-pegged, which caused even more FUD in the market.
Tether is continually trying to be as transparent to its users as possible. Tether is using BDO Italia accounting firm to deal with continuous reviews and maintain public relations regarding its ability to back USDT.
After controversies regarding FTX, the decline of Genesis only rubbed salt into the wound, further aggravating market sentiment.
Even though Tether’s announcement alleviates some of the public’s fears regarding USDT, users remain largely unconvinced. This comes due to the fact that a lot of companies that claimed to have no exposure to companies that failed, were eventually exposed.
Still, USDT has been in the market for quite a while. Many consider it to be superior to other stablecoins. Hence, many still believe that USDT is not prone to danger despite what happens with other exchanges.