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Tether, the world’s largest stablecoin, has slashed back its commercial paper holdings to zero, replacing them with U.S. Treasury bills instead, according to a blog post. The popular U.S.-dollar-pegged cryptocurrency said the move is part of tether’s “ongoing efforts to increase transparency” and back its tokens with “the most secure reserves in the market” — in the ultimate hope of ensuring investor protection.

There are now about 68.4 billion tether tokens in circulation, according to data from CoinMarketCapup from 2 billion three years ago. The cryptocurrency has a market capitalization of $68.4 billion.

“Tether has led the industry in transparency releasing attestations every three months, constantly reviewing the make up of its reserves,” continued the statement.

Commercial paper is a form of short-term, unsecured debt issued by companies, and it is considered to be less reliable than Treasury bills. In October, Tether’s Chief Technology Officer, Paolo Ardoino, tweeted that 58.1% of its assets were in T-bills, up from 43.5% in June. It is unclear where that percentage currently stands, but Ardoino did write in a post on Thursday that Tether was able to pay $7 billion, or 10% of its reserves, in 48 hours.

“Ask your bank or other stablecoins if they can do that, in same time frame of course,” he wrote.

Thursday’s statement went on to note that zeroing out the balance of its commercial paper holdings was also meant to be a step toward “greater transparency and trust, not only for tether but for the entire stablecoin industry.”

The stablecoin corner of the crypto market has certainly had trust issues in the last year.

Last year, tether had to pay a multimillion dollar fine following a legal battle with the New York attorney general’s office over concerns related to the viability of its reserves, and in May, the collapse of terraUSD (UST), which was once one of the most popular stablecoin projects, cost investors tens of billions of dollars.

The fall of UST resulted in a falling domino effect across the wider crypto ecosystem. Part of the fallout involved tether temporarily losing its dollar peg and dipping as low as 95 cents.

But well before UST’s dramatic implosion, Tether — the company behind the stablecoin of the same name — was facing serious regulatory backlash over its reserves.

Most stablecoins are backed by fiat reserves, the idea being that they have enough collateral in case users decide to withdraw their funds. (UST was among a new breed of “algorithmic” stablecoins that attempt to base their dollar peg on code.)

Previously, Tether claimed all its tokens were backed one-to-one by dollars stored in a bank. However, after a settlement with the New York attorney general, the company revealed it relied on a range of other assets, including commercial paper, to support its token.

In April, Ardoino told CNBC that the company was well equipped to deal with mass redemptions, but New York Attorney General Letitia James’ office previously alleged that Tether sometimes held no reserves to back its cryptocurrency’s dollar peg. It said that, from mid-2017, the company had no access to banking and misled clients about liquidity issues.

“Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie,” she added. Tether said in a statement on its website that contrary to speculation, “after two and half years there was no finding that Tether ever issued tethers without backing, or to manipulate crypto prices.”

Critics have also raised fears that tether tokens were used to manipulate bitcoin prices, a claim Tether has repeatedly denied.

While not yet large enough to cause disruption in U.S. money markets, tether could eventually reach a size where its owning of U.S. Treasuries becomes “really scary,” Carol Alexander, a professor of finance at Sussex University, said.

“Suppose you go down the line and, instead of $80 billion, we’ve got $200 billion, and most of that is in liquid U.S. government securities,” she said. “Then a crash in tether would have a substantial impact on U.S. money markets and would just tip the whole world into recession.”

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This new sun-powered electric cargo moped is literally giant solar panels on wheels

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This new sun-powered electric cargo moped is literally giant solar panels on wheels

Cargo scooters are a rare breed, filling a niche that exists between typical e-bikes/e-scooters with minimal storage and larger cargo-specific models designed for utility. But that dearth of cargo scooters may be changing, based on several interesting new models we’ve seen lately, including the recently unveiled Lightfoot cargo electric scooter.

Yet unlike the few other cargo scooters rolling around out there, the Lightfoot has one major advantage: its built-in solar panels keep it charged up directly from the sun.

It’s not the first solar-powered scooter we’ve seen, but it’s definitely the most eye-catching model yet.

Developed by Otherlab, the Lightfoot electric cargo scooter features a pair of 120W solar panels on either side, hiding a large 45.2 L (12-gallon) storage compartment. One panel is hinged, opening the entire side of the vehicle for easy cargo access, then locking back in place for secure storage.

Also hidden away by those panels are the equally large UL-certified 1.1 kWh battery and the 600W on-board charger (just in case you do need to plug it into the grid for a quicker charge than you’d get from the solar panels). In fact, the company claims an 80% charge is possible in just 90 minutes from a 110V wall outlet. Based on the company’s figures, it looks like solar charging is likely to fill the battery at a rate of roughly 7-8% per hour (around 3 miles or 5 km of additional range per hour of sun exposure). That means heavy utility users will likely still rely on the wall plug from time to time, but there’s nothing wrong with outdoor parking helping to extend the range.

The company rates the scooter’s range as up to 37 miles (60 km) per charge and claims an extra 18 miles (30 km) of range can be added per day from the solar panels.

That means the scooter could actually be purely solar-charged when used for modest duty cycles, i.e. less than 18 miles (30 km) per day. As the company explained, “If you only need it for a few short errands a day, park it in your driveway and it will always be ready for you. For many riders, we’re hoping this means saying goodbye to plug-in charging altogether.”

With a 20 mph (32 km/h) top speed, the scooter is said to be “bike lane legal” without requiring any additional license or registration.

The Lightfoot is also designed to be easy to work on with minimal mechanical components. The dual motor system relies on hub motors instead of centrally mounted motors, meaning there are no chains or belts to deal with. Between those two 750W rated (1 kW peak) motors, the scooter should get up to speed pretty quickly while laying down nearly 2,000 watts of power.

The company is offering a 1-year warranty on the entire scooter, with an even longer 2-year warranty for the major components consisting of the frame, motors, controllers, brakes, lighting, and front suspension. The scooter is also covered by an “ironclad buy-back guarantee” with the company promising to buy the scooter back from any riders who are “unsatisfied with their purchase for any reason.”

Set to begin deliveries in January 2025, the Lightfoot is now available for purchase with an MSRP of US $4,995.

Electrek’s Take

Look, I’m split here. My inner mechanical engineer is drooling over this thing, while my inner MBA is wondering how you sell it to a broader market than… people like me. My two professional backgrounds have often been in conflict before, but this is peak engineer’s delight meets ultra-niche aesthetic.

Sure, I would 100% ride the hell out of this thing. I’d ride it everywhere with zero qualms about the appearance. But I’m probably not the best representative of the average scooter customer since I tend towards the tech nerd side of the spectrum. And so I hope that the Lightfoot can find wider appeal than I fear it may be limited to.

Oh, and for all of those ready to hammer out the “AcTuAlLy ThAt’S NoT tHe MoSt EfFiCiEnT WaY tO dO iT…” comments, I think that’s missing the point. The whole idea here isn’t to maximize every photon, but rather to not waste the ample sunlight that otherwise simply bakes the paint on every other scooter and moped out there (and don’t get me started on the “moped” linguistic purists). Sure, you’re probably only ever getting appreciable solar charging from one panel at a time, but why not maximize your chances of catching those rays whenever you can?

So all told, I love this thing. I just wonder how many people will love it as much as I do.

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Hyundai confirms IONIQ 9 SUV debut date while teasing first look at its ‘lounge-like’ interior

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Hyundai confirms IONIQ 9 SUV debut date while teasing first look at its 'lounge-like' interior

Hyundai will finally unveil its first three-row electric SUV, the IONIQ 9, at the LA Auto Show next week. With its debut around the corner, we are getting a sneak peek at the SUV’s “lounge-like” interior.

Hyundai IONIQ 9 will debut on November 21, 2024

The 2025 Hyundai IONIQ 9 will make its first appearance at AutoMobility LA (LA Auto Show) on Thursday, November 21, 2024.

Hyundai will hold a news conference inside the LA Convention Center to unveil its new flagship three-row electric SUV. The event will be live-streamed starting at 9:10 am PT (12:10 pm ET).

Although rumors claimed that Hyundai would reveal its new SUV at the LA Auto Show, this is the first time it has officially confirmed the debut date. Previously, the company left it open, saying it would make its first appearance in November.

Ahead of its official debut, Hyundai previewed the IONIQ 9’s “lounge-like” interior. Simon Loasby, head of Hyundai’s Design Center, boasted that “IONIQ 9 offers the ultimate lounge-like environment.”

The spacious and “nature-inspired” interior features Hyundai’s latest software and connectivity tech. Based on its advanced E-GMP platform, following the IONIQ 5 and 6, the larger SUV includes a flat floor for an open space cabin.

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Hyundai teaser IONIQ 9 interior ahead of its debut (Source: Hyundai)

What to expect

Hyundai has been dropping new teasers leading up to its debut. Earlier this week, we got a look at the IONIQ 9’s new LED light bar, similar to the Tesla Cybertruck.

The IONIQ 9 features Hyundai’s new “Aerosthetic” design, which blends aerodynamics with a sleek aesthetic look.

Hyundai-IONIQ-9-debut
Hyundai IONIQ 9 teaser (Source: Hyundai)

Although prices and specs have yet to be revealed, the IONIQ 9 is expected to be similar in size to the Kia EV9. Also based on the E-GMP platform, the EV9 is 197.2″ long, 77.9″ wide, 70.1″ tall, with a wheelbase of 122″. That’s about the size of its Telluride.

However, with its flat-floor design, the EV9 provides more rear legroom (42″) than a Cadillac Escalade.

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2024 Kia EV9 GT-Line interior (Source: Kia)

Kia’s three-row EV9 starts at about $55,000, so IONIQ 9 prices are expected to start at about the same or slightly higher. More premium trims could cost upwards of $80,000.

The IONIQ 9 will be built at Hyundai’s massive new Metaplant America (HMGMA) alongside the updated 2025 IONIQ 5 model. The new 2025MY has more range, features, and an sleek new design. It even includes a Tesla NACS charging port, which the IONIQ 9 is also expected to feature.

Hyundai said all US-made EVs qualify for a $3,750 federal tax credit. However, once the battery portion of the plant opens, they are expected to be eligible for the full $7,500. Until then, Hyundai is passing the $7,500 on through leasing.

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Hyundai’s new 2025 IONIQ 5 Limited with a Tesla NACS port (Source: Hyundai)

Last week, Hyundai announced that 2025 IONIQ 5 prices will start at $43,975 (including a $1,475 destination fee). The extended-range SE RWD trim, with a range of up to 318 miles, starts at $46,550.

Check back next week for all the details on the new IONIQ 9 SUV. And keep an eye out for more teasers leading up to its debut on Thursday, November 21, 2024.

With the new 2025 IONIQ 5 arriving at dealerships any day, Hyundai is offering clearance prices on 2024 models. You can use our link to find the best deals on Hyundai’s IONIQ 5 at a dealer near you.

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Buy now, pay later provider Klarna says it filed confidentially for U.S. IPO

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Buy now, pay later provider Klarna says it filed confidentially for U.S. IPO

Buy now, pay later firms like Klarna and Block’s Afterpay could be about to face tougher rules in the U.K.

Nikolas Kokovlis | Nurphoto | Getty Images

Klarna, which is known for its popular buy now, pay later business, announced Wednesday that it’s confidentially filed IPO documents with the SEC.

The Swedish payments company has yet to publicly file its IPO prospectus. The company said the offering would follow the SEC’s review process and is subject to market conditions.

Analysts recently valued Klarna, which was founded in 2005, in the $15 billion range. At its peak during the pandemic-led surge in fintech stocks and e-commerce, the company had a valuation of $46 billion in a funding round led by SoftBank’s Vision Fund 2.

But Klarna took an 85% haircut in its most recent primary fundraising round, in 2022, when the company raised money on a valuation of $6.7 billion.

In addition to SoftBank, Klarna’s roster of shareholders includes Sequoia Capital and London-based firm Atomico.

Klarna CEO Sebastian Siemiatkowski previously told CNBC in an interview that unfavorable rules in Europe on employee stock options could risk the company losing talent to U.S. tech giants such as Google, Apple and Meta.

Plans for an IPO have been in the works for some time. In a February interview with CNBC’s “Closing Bell,” Siemiatkowski said an IPO in 2024 was “not impossible.” Affirm, one of the company’s key competitors, went public in 2021 and is now valued at about $18 billion.

In August, Klarna said it swung to a profit in the first half of the year.

Klarna’s decision to go pursue a listing in the U.S. represents a major blow to European stock exchanges, which have been trying to encourage local tech companies to list at home.

The London Stock Exchange, for example, has made reforms to make the U.K. a more attractive market for tech companies to list, including the ability for founders to issue dual-class shares that enable entrepreneurs to maintain control over a company’s strategy and direction.

Siemiatkowski hadn’t previously committed to listing in one market over another, and London was among the markets he was considering for Klarna’s IPO.

However, in 2021 he said that the firm was more likely to list in the U.S. than the U.K., due in part to higher visibility.

WATCH: Block and Affirm slide on earnings

Block and Affirm slide on earnings

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