A California nonprofit has begun a major advertising push to highlight concerns about Tether. Consumers' Protection is spending millions on TV ads, billboards, and digital outreach.
The campaign centers on a 30-second TV spot. It asks: "Is Tether the next FTX?" The ad labels Tether the "go-to cryptocurrency for the world's worst."
The nonprofit cites Tether's lack of a full audit as a key issue. This mirrors criticisms of FTX before its collapse. Billboards will appear in high-profile locations. These include Times Square in New York and mobile displays in Washington, DC.
A new website accompanies the campaign. It features stark visuals and links to critical media coverage of Tether.
The effort underscores stablecoins' growing prominence. Will Hild, executive director of Consumers' Protection, stated: "Consumers should be weary [sic] of any so-called stablecoin that refuses to properly certify that they actually hold the assets they claim."
Research suggests limited consumer use of stablecoins currently. Bloomberg reported in May that less than 10% of stablecoin transactions involve "real people."
Tether is pushing into the consumer market. It launched a Telegram-based mobile app in May. PayPal's new PYUSD stablecoin also targets consumers.
Regulatory challenges loom for Tether, some crypto exchanges are delisting USDT ahead of new EU rules.
Consumers' Protection, founded in 1929, is a US nonprofit. It receives backing from religious and conservative groups. The organization runs other campaigns on issues like ESG investing and corporate "wokeness."