Tether is one of the pillars of the crypto industry particularly in the stablecoin world, yet USDT FUD seems to be a yearly occurrence. Is Tether really is setting aside enough in assets to keep its dollar peg secure? That is the question that is continually being asked by everyone. One thing is for sure we don’t know exactly where those assets are held, which money market funds Tether invests in or any other details that might imply the level of risk around its collateral to back up their $83 billion mcap.
Tether has already paid fines of $18.5 million in a settlement with the NY Attorney General & $42.5 million to the Commodity Futures Trading Commission in 2021 from allegations that they lied about their reserves in the past.
Personally I like to use Tether the most out of all stablecoins – but do I trust them to be fully backed 1:1 at all times? Hell no.
But everyone in crypto, including myself, will just have to hope/pray they are either ‘too big’ to fail or they can continuously keep paying fines like they have already done to get out of predicaments. Otherwise the crypto house of cards will certainly be falling very hard if Tether's peg ever breaks for good. Show Less
