đ«š CAN TETHER STAY STABLE IF BITCOIN TANKS?
Tether, the worldâs largest stablecoin, claims it holds 100,000 $BTC.
Could a bitcoin crash endanger $USDT's reserves?
A look into the potential vulnerabilities of the crypto giant đ§”
Tetherâs March 31 attestation shows $5.6B more assets than liabilities.
But if BTC plummets & Tether chooses not to sell, this equity could vanish, leaving them without sufficient backing.
đ§ The magic number? Total value of bitcoin falling to $2 billion or ~$22K per $BTC.
Tether claims $13B in profit in 2024 and could choose to reduce profits to potentially cover shortfalls.
While Tether is currently large and profitable, itâs more aggressive reserve management than competitors does introduce unique risks.
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