You can’t stop the Tether FUD

In the crypto world, FUD stands for fear, uncertainty and doubt. It is often raised intentionally to draw negative attention to a particular project or business. One of crypto’s most enduring legacies is the persistent FUD surrounding Tether, whose USDT stablecoin commands a market capitalization of nearly $68 billion. Intentional or not, The Wall Street Journal ran a story this week claiming that Tether is on the verge of technical bankruptcy and that it won’t take much to push the stablecoin issuer into financial peril. Of course, Teter didn’t take it lying down and immediately responded to the Journal’s “fake” campaign.

No matter which side of the debate you’re on, there’s a strong media bias against Tether. In fact, the Journal ran a story a few months ago saying that more hedge funds were betting against statcoin at the same time the crypto market as a whole was declining.

This week’s Crypto Biz Newsletter breaks down the Tether controversy and brings you up-to-date information on the state of venture capital and intangible tokens (NFTs).

Tether responded to the Wall Street Journal’s ‘false information’

In an article published on Saturday, The Wall Street Journal said that even a 0.3% decline in Tether’s assets could render the stablecoin issuer “technically bankrupt.” The Journal was referring to Tether’s latest disclosure on its website, which showed that its assets narrowly exceeded its liabilities. Teter clapped back and accused the Journal of engaging in unnecessary FUD. “The article seeks to discredit Tether’s commitment to open and honest communication with the public,” Tether said. Perhaps the WSJ confused Teter with some of its competitors. If you’re concerned about Tether FUD, don’t sweat it. The stablecoin has been regularly attacked by the mainstream media since at least 2017.

‘Everything’s for sale’: Reddit founder Galaxy and Genesis X raise big money

With all the talk of crypto summer, venture capital continues to flood the blockchain industry. This week, Reddit founder Alexis Ohanian announced that his company is raising $177.6 million to invest in seven different crypto and blockchain startups. “If you’re long in the industry, now is the best time to buy. It’s on sale. Everything is on sale,” said Katelyn Holloway, co-founder of Seven Seven Six. If recent history is any indication, Seven Seven Six will be successful in meeting its investment target. More big from the world of blockchain. Stay tuned for funding stories.

Meta announced that Facebook and Instagram users can post NFTs from digital wallets

Mark Zuckerberg’s Meta has yet to launch its own stablecoin, but the social media giant is still embracing blockchain technology in other ways. Effective immediately, nearly 2.9 billion Facebook users will be able to share NFTs by connecting their digital wallets directly to the social media app. The announcement comes less than a month after Meta Instagram enabled NFT integration in over 100 countries. It’s not entirely clear how Meta will make money from the NFT merger. Investors may be hoping that NFTs won’t burn a hole in Zuckerberg’s pocket like the company’s Metaverse division (yikes).

‘Most cryptocurrencies are still junk’ and don’t have a use case – JPMorgan blockchain head

After years of crushing bitcoin (BTC), JPMorgan has released a limited dividend for the digital asset — a clear sign that major banks recognize the sector’s long-term value proposition. Umar Farooq, who heads JPMorgan’s digital asset division, recently told a panel that most crypto projects are “junk” and not worth pursuing as investments. “Except for a few dozen signals, everything that’s been quoted is either noise or, in fact, gone,” a finance official told Singapore’s Green Shot Seminar. I think most investors would agree that most crypto projects have no future. The problem lies in agreeing which projects outside of Bitcoin and Ether (ETH) are not garbage.

Don’t miss it! Crypto Market Crash – Is It Over Or The Start Of The Next Mega Crash?

Crypto winter is starting to look like a deep snow for crypto as Bitcoin, Ether and altcoins crashed this week. Have we seen an actual bottom in crypto prices or is there more pain on the way this fall? In this week’s market report, I sit down with fellow analysts Marcel Pechman and Benton Yaun to discuss where crypto prices are headed next. You can watch the full replay below.

Crypto Biz is your weekly roundup of the business behind the blockchain and crypto delivered straight to your inbox every Thursday.