• 28 May, 2024
News

Tether Announces Launch of CNH₮ on Tron Amidst Transparency Allegations

According to a recent announcement, the popular stablecoin platform Tether has launched its CNH₮ stablecoin (Pegged to Chinese yuan), on the Tron blockchain. The Tron-based stablecoin will initially be available on the crypto exchange Bitfinex, where users would be able to withdraw and deposit CNH₮ using the Tron blockchain transport layer.

Launched in 2019, CNH₮ is pegged to the offshore Chinese Yuan (CNH). Initially available solely on Ethereum as an ERC-20 token, CNH can now be bought, exchanged, and held on TRON.

“At a time when the crypto market is experiencing immense turmoil, we believe that the best way forward is to keep building. Things are business as usual at Tether and we hope our continued growth and expansion will inspire others to keep going as well,” said Tether CTO Paolo Ardoino.

Tether under fire

The recent development comes just a week after a Wall Street Journal report alleged that Tether has been operating without transparency by not publishing details about the reserves that back the popular stablecoin USDT.

The article also alleged that the stablecoin issuer had been ”lending its own coins to customers” instead of selling them for liquid currency, adding that this adds to the risk of not having enough liquid assets in the case of a crisis situation such as what transpired in the case of Terra’s UST.

The report also added, “Tether doesn’t say what the loans’ market value is, or whether the collateral includes cryptocurrencies.”

Tether was swift to respond to these allegations with a blog post, stating that “The article had many misconceptions of Tether and USDT, the most glaring of which was the claim that because Tether’s secured loans of USDT were denominated in USDT, Tether was exposed to a decline in the value of USDT.”

In addition, Tether co-founder Reeve Collins appeared on CNBC’s SquawkBox to refute the claims, saying that the company has published proof of its reserves on its website and that it undergoes regular audits.

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