Cryptocurrency lending firm Nexo denies close association with Tether [USDT]

Nexo, a cryptocurrency lending firm, recently shared on Twitter about its relation with the USD-backed stable coin Tether [USDT]. Nexo stated that the company has never held any significant amounts of USDT on its balance sheet.

Nexo follows the situation around Tether (USDT) closely. We would like to assure all clients and investors that Nexo has never held significant amounts of Tether (USDT) on its balance sheet. We are soon adding support for more stablecoins.

— Nexo (@NexoFinance) October 16, 2018

This came after a fresh round of speculations arose last week regarding the status of Tether [USDT] being fully backed by dollars. Tether Ltd, the company that issues USDT tokens, has repeatedly affirmed that each USDT coin is backed by dollars. However, the company has failed to provide proof of its dollar holdings. Bitfinex and its affiliate Tether recently lost their primary banking partner, Puerto Rico-based Noble Bank International. Bitfinex has failed to carry out an audit to back its claims of each USDT token being backed $1, doubting the stability of the coin. Bitfinex is now the second largest holder the token after Binance, the largest crypto exchange in the world. On Monday, Binance suspended withdrawals of the stable coin on Monday during a period of heightened activity. Rumors of Binance de-listing Tether started going around, which the exchange later denied. According to the platform's website, withdrawal functionality was later restored. On Tuesday, to clear the speculations surrounding Tether, Binance CEO Changpeng Zhao (CZ), tweeted, "1 USDT withdraw on Binance is not the issue. 2 Our USDT reserve is public, can be seen on the blockchain. 3 We have same info as the public. 4 We don't comment on coins. Anything we say is over/misinterpreted. 5 We stay neutral, and we SIMPLY PROVIDE CHOICES." See also: Binance shares what Blockchain Charity Foundation does, origin of BCF and more Real estate marketplace Propy will now accept Binance Coin [BNB] as a mode of payment Image via Shutterstock Join our telegram group