18-05-2022, 08:33 AM
PUBLISHED TUE, MAY 17 20228:10 AM EDTUPDATED 5 HOURS AGO
Ryan Browne
Investors have withdrawn more than US$7 billion from tether since it briefly dropped from its dollar peg, raising fresh questions about the reserves underpinning the world’s largest stablecoin.
Tether’s circulating supply has slipped from about US$83 billion a week ago to less than US$76 billion on Tuesday, according to data from CoinGecko.
The so-called stablecoin is meant to always be worth US$1. But on Thursday, its price slipped as low as US 95 cents amid panic over the collapse of a rival token called terraUSD.
Most stablecoins are backed by fiat reserves, the idea being that they have enough collateral in case users decide to withdraw their funds. But a new breed of “algorithmic” stablecoins like terraUSD, or UST, attempt to base their dollar peg on code. That’s been put to the test lately as investors have soured on cryptocurrencies.
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The situation has once again placed the subject of the reserves behind tether under the spotlight. When Tether last disclosed its reserve breakdown, cash made up around US$4.2 billion of its assets. The vast majority — US$34.5 billion — consisted of unidentified Treasury bills with a maturity of less than three months, while US$24.2 billion of its holdings was in commercial paper.
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Tether has faced repeated calls for a full audit of its reserves. In July 2021, the company told CNBC it would produce one in a matter of “months.” It has still not done so.
Lots more at: https://www.cnbc.com/2022/05/17/tether-u...cking.html
Ryan Browne
Investors have withdrawn more than US$7 billion from tether since it briefly dropped from its dollar peg, raising fresh questions about the reserves underpinning the world’s largest stablecoin.
Tether’s circulating supply has slipped from about US$83 billion a week ago to less than US$76 billion on Tuesday, according to data from CoinGecko.
The so-called stablecoin is meant to always be worth US$1. But on Thursday, its price slipped as low as US 95 cents amid panic over the collapse of a rival token called terraUSD.
Most stablecoins are backed by fiat reserves, the idea being that they have enough collateral in case users decide to withdraw their funds. But a new breed of “algorithmic” stablecoins like terraUSD, or UST, attempt to base their dollar peg on code. That’s been put to the test lately as investors have soured on cryptocurrencies.
......
The situation has once again placed the subject of the reserves behind tether under the spotlight. When Tether last disclosed its reserve breakdown, cash made up around US$4.2 billion of its assets. The vast majority — US$34.5 billion — consisted of unidentified Treasury bills with a maturity of less than three months, while US$24.2 billion of its holdings was in commercial paper.
......
Tether has faced repeated calls for a full audit of its reserves. In July 2021, the company told CNBC it would produce one in a matter of “months.” It has still not done so.
Lots more at: https://www.cnbc.com/2022/05/17/tether-u...cking.html