Tether hits on Hindenburg Research’s ‘pathetic’ $ 1M reward proposal

The investment research firm and short-seller Hindenburg Research has offered a USD 1m award for data on how the tether (USDT) stablecoin is really fixed to the United States dollar, and information on how Tether’s deposits really work. In an emphatic reaction, Tether called the “bounty” “cynical,” and called Hindenburg’s declaration “a pathetic bid for attention. “Hindenburg, which has recently designated any semblance of the Chinese automaker Kandi and the medical services supplier Clover Health among other significant firms, claims that it had “doubts about the legitimacy of tether” – which was recently the subject of what it labeled an “outlandish” report from Bloomberg Businessweek.

It also spoke of a “growing threat to investors” and “encouraged disclosure” related to what it called “a crucial part of the crypto markets, which are nearing ‘systemic’ size.”

In its own statement, Hindenburg wrote that it had decided to make the offer “due to the company’s sparse disclosures.”

On Twitter, though, Tom Schmidt, a Partner at Dragonfly Capital, quipped that if anyone had “strong evidence that tether is unbacked, there’s a bounty out there” that is “much larger than USD 1 million.”

Tether wrote that “everyone” could sense Hindenburg’s “opportunism as bitcoin (BTC) approaches another all-time high” – a feat BTC has achieved since the stablecoin operator penned its response.

News Summary:

• Tether hits on Hindenburg Research’s ‘pathetic’ $ 1M reward proposal
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