Tether, USDT issuerhas long been considered one of the most stable assets in the cryptocurrency market, but a recent report suggests that Collapse in the price of Bitcoin It could jeopardize the solvency of the stablecoin. Arthur Hayes, co-founder and CIO of BitMEX, revealed that a portion of USDT reserves are allocated to Bitcoin, which could expose it to increased market volatility.
Bitcoin price collapse threatens USDT stability
In a recent report subscriber At X earlier this week, Hayes outlined market risks that could have a devastating impact on Tether’s USDT. The BitMEX founder explained that the stablecoin issuer was executing a broad interest rate trade, potentially betting on… The Federal Reserve (FED) lowered interest rates.
He stated that the stablecoin issuer had done so Accumulated significant positions in Bitcoin And gold to hedge against falling interest income. As a result, Hayes warned that if Tether’s positions in both gold and Bitcoin decline by roughly 30%, it could wipe out its entire stock, theoretically putting USDT at risk. Insolvency.
Since stablecoins are usually backed by the US dollar, the cryptocurrency founder stated that a sharp decline in the reserve value of Tether could lead to panic among people. USDT holders And exchange cryptocurrencies. In such a scenario, they may require immediate insight into the balance sheet of the stablecoin issuer to gauge solvency risk. Hayes also suggested that mainstream media could further amplify fears, creating widespread alarm in the market.
Analyst responds to Hayes USDT claims
Following Hayes’ comments on X, Tether’s USDT has come under scrutiny, with cryptocurrency analysts debating the resilience of its reserves. Joseph Ayoub, former leader of SETI Research, challenge Hayes claims, arguing that even if Bitcoin and gold prices collapse by 30%, a USDT bankruptcy remains highly unlikely.
And highlight that Co-founder of BitMEX He missed three key points in his post. Ayoub pointed out that Tether was open It has been detected Assets do not represent the entire property of the company. According to him, when Tether issues USDT, it maintains a separate balance sheet for the shares It has not been reported publicly. The reserve figures revealed at the end are intended to show how USDT will be supported. At the same time, the company maintains a balance sheet of Stock investmentsMining operations, corporate reserves, and perhaps more Bitcoin, and the rest is distributed as dividends to shareholders.
As Job described Tether’s core operations are very profitable And effective. He stated that the company holds more than $100 billion in interest-yielding Treasury securities and generates approximately $10 billion in liquid profits annually while operating a relatively small team. The former Citi research leader estimated that the equity value of the stablecoin issuer was likely to be between $50 billion and $100 billion, providing it with a significant cushion against losses in its assets. Cryptocurrency and Gold Collectibles.
Finally, Ayoub revealed that Tether operates like traditional banks, keeping only 5-10% of deposits in the form of liquid assets, while the remaining 85% is kept in long-term investments. He also noted that the stablecoin issuer has much better collateral than banks, adding that he is with The ability to print moneyBankruptcy is almost impossible.
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