'We Wear Your Loathing With Pride': Tether's Downgrade at S&P Sparks Online Battle

S&P Global downgraded Tether's USDT stablecoin rating to its weakest level (from 4 to 5) citing concerns over the opacity of Tether's reporting and the fact that Bitcoin now constitutes over 5% of its reserves, posing a risk of undercollateralization if BTC prices fall. Tether CEO Paolo Ardoino defiantly responded, stating they "wear your loathing with pride" and asserting that Tether is an overcapitalized company built to defy the broken traditional financial system. The downgrade reignited long-standing arguments about USDT's backing. Investor Jason Calacanis advised Tether to sell its Bitcoin, hold only U.S. treasuries, and secure two audits from American firms. This advice drew sharp criticism from Bitcoin proponents, who pointed to the failure of SVB (which held Treasuries) and the absurdity of swapping BTC for government paper. Financial blogger Quoth the Raven also weighed in, demanding a full, independent audit as the "bare f---ing minimum" for an entity underpinning global markets.

(Source：CoinDesk)