This year’s slump in digital assets is pressuring crypto companies to show investors that their money is safe. So far, they haven’t delivered.
Many crypto companies lack the basic financial guardrails that help protect investors in traditional banks. Firms often don’t publish financial statements, or have anyone check their books. Even if they are audited, there are no agreed accounting standards for digital assets.
Take Tether, the company behind the world’s largest stablecoin. In recent months, it launched a marketing blitz of blogs and press releases, touting its transparency, after a series of crypto firm failures rattled investor confidence in it. Tether is designed to grease the rails of the roughly $1 trillion cryptocurrency market by promising each token can be redeemed for $1. Market observers have long questioned whether the firm’s reserves are sufficient and have been demanding audited information.
The company has been promising an audit since at least 2017….
Source: Tether Says Audit Is Still Months Away as Crypto Market Falters – WSJ
