Auditors reveal USDC backing as Jim Cramer sounds alarm over Tether's mad money
July 21, 2021. Summarized by summa-bot.
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As of May 28, 61% of USDC’s reserves were held in cash and cash equivalents equating to $13.4 billion.
Auditors working for Circle have disclosed the reserves backing the firm’s USDC stablecoin, while Mad Money’s Jim Cramer has questioned Tether’s lack of transparency with its USDT reserves.
Circle’s total commercial paper accounts for 9% of its reserves, and the figures provide a stark contrast to Tether’s reserves, in which undisclosed commercial paper accounted for 49. 5% of its total reserves — something that Cramer has been "sounding the alarm" about recently.
Speaking during a July 20 interview with The Street, Jim Cramer, the host of CNBC’s Mad Money questioned Tether’s lack of transparency and is asking why the firm hasn’t disclosed what the large percentage of commercial paper backing USDT is.
Tether’s reserve breakdown showed that as of March 31, three-quarters of its reserves were held in cash, cash equivalents, other short-term deposits, and commercial paper.
The firm is yet to reveal what comprises its commercial paper holdings, and Cramer has been sounding the alarm bells:
Tether open up the kimono, what commercial paper do you own?”