@vishlenow
Summary of Recent Tether FUD:
Online chatter raised concerns that Tether is heavily exposed to risky assets like Bitcoin and gold.
Arthur Hayes, BitMEX Co-Founder, noted Tether is effectively betting on the Fed cutting rates, expecting BTC/gold to rise. If BTC/gold drop 30% while users withdraw en masse before a rate cut, Tether’s equity could be wiped out.
This sparked fears Tether might collapse like Luna.
Reality:
Tether’s report shows about $23B in gold and Bitcoin—big, but only 12.77% of its $181.2B market cap.
U.S. Treasury bonds make up $112B.
In the worst-case scenario Hayes mentions (BTC/gold -30%), Tether would lose ~$6.9B, while bond interest brings in $4–5B annually.
Conclusion: Tether is exposed but well-diversified; risk exists, but total collapse is unlikely.
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