The founder and CEO of Avanti Financial is claiming Tether’s recent disclosure about the stablecoin's reserves may have contributed to the altcoin selloffs last week.
In a series of Saturday tweets, Caitlin Long said that Tether Holdings Limited’s breakdown of Tether’s (USDT) reserves were not invested in “short-term, lower-risk, liquid securities,” but rather credit assets of “who-knows-what quality.” The Avanti CEO claimed traders may have felt compelled to sell other cryptocurrencies to reduce their total risk exposure, given that the stablecoin — ranked sixth with a $58 billion market cap — has the potential to bring down other tokens amid a credit market correction.