Tether Promises Zero Risk for USDT Holders

02/16/2023 12:51 • Daily Digest • 77 views

According to the report, Tether’s official document “Evolution of Tether Reserves” pointed out that in 2022, Tether will reduce the risk of commercial paper to zero, and there is no gap in the liquidity of USDT holders, and Tether has not shrunk. USDT now has more than 81% of cash and cash equivalents, including more than $39 billion of direct exposure to US treasury bond bonds, money market funds, reverse repurchase agreements, and cash and bank deposits. Tether said that although collateral was selected based on its conservative and liquidity nature, Tether’s reserves and operations had generated more than $700 million in net profits, which were added to Tether’s reserves, resulting in a total excess reserve of $960 million.

Tether: Tether has generated more than US $700 million in net profit

Interpretation of the news:

Tether, the stablecoin operator, has claimed in its official document, “Evolution of Tether Reserves,” that it will eliminate the risk of commercial paper by 2022. Furthermore, the report indicated that there will be no liquidity gap for USDT holders, and Tether has not suffered any contraction. The report added that USDT presently has more than 81% of cash and cash equivalents in reserve, including exposure to US treasury bond bonds, money market funds, and bank deposits worth over $39 billion. The move to reduce the risk of commercial paper to zero by 2022 highlights Tether’s efforts to minimize its vulnerability to market fluctuations and provide more stability for USDT holders.

Tether has for long been regarded as a controversial player in the cryptocurrency space, accused by some analysts of lacking transparency in its reserve reporting, among other issues. However, the release of an official statement on reserve developments and its commitment to providing zero risk to USDT holders could help to restore trust in Tether.

The report also revealed that the reserve and operations of Tether generated profits worth over $700 million, which were added to its reserves, resulting in a total excess reserve of $960 million. This presents an encouraging sign of the company’s reserves generating consistent profits that can accrue to the benefit of USDT holders.

Tether’s choice of collateral for reserve pooling was dictated by its conservative and liquidity nature, ensuring that the reserves remained stable and liquid despite market shifts. The significant amount of cash and cash equivalents in reserve should also mitigate the impacts of cryptocurrency price fluctuations and other external factors that may result in instability for USDT holders. The move to diversify reserves and the commitment to providing zero risk for USDT holders indicates that Tether is making substantial efforts to address the concerns of its critics and ensure that its operations remain transparent, safe, and stable.

In conclusion, Tether’s report represents a step in the right direction towards restoring confidence in the cryptocurrency and its operations. By eliminating the risk of commercial paper by 2022 and maintaining significant cash and cash equivalents in reserve, Tether is sending a message of stability and safety to the crypto market. The sustained growth in reserves and profits generated from operations is also an encouraging sign that Tether has a sustainable business model that can benefit USDT holders over the long term.

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Tether Promises Zero Risk for USDT Holders

Tether: Tether has generated more than US $700 million in net profit

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