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S&P Downgrades Tether (USDT) to Lowest Level Due to Exposure to Bitcoin and Gold in Its Reserves 🚨
The financial services agency S&P Global Ratings has downgraded the stability assessment of the stablecoin Tether (USDT) to its lowest score, 5 (weak condition), from its previous "limited" rating.
Main Reason: The change is due to the composition of the reserves backing the USDT. S&P criticizes that an increasing portion of these assets consists of higher-risk investments, such as bitcoin and gold, instead of safer and more liquid instruments.
Warning: This exposure could jeopardize the currency's parity with the dollar if the value of these volatile assets suddenly drops.
Lack of Transparency: The agency also criticizes the lack of clarity in the company's management, including opacity regarding the custodians of the funds and the absence of complete audits.
#Tether #USDT #SPGlobalRatings #Stablecoin #Cryptocurrencies #Risk
