Tether Reserve Controversy Resurfaces: Can a $6.8 Billion Surplus Alleviate Market Concerns?

Question

[Bitpush] The stablecoin sector has been anything but calm this week.

Arthur Hayes from BitMEX made some comments, saying that if Tether’s reserve assets drop, there could be big trouble. No sooner had he spoken than James Butterfill, Head of Research at CoinShares, stepped in to refute him—he said Hayes’ concerns are unfounded.

On December 5, Butterfill released a report with hard data: Tether’s latest audit shows reserve assets of $181 billion, liabilities of $174.45 billion, and a net surplus of nearly $6.8 billion. On paper, things look pretty stable. Of course, the risks of stablecoins can’t be completely ignored, but at least the current numbers don’t reveal any systemic flaws.

Even more importantly, Tether earned $10 billion in profit in the first three quarters of this year. That level of profitability puts it at the very top of the industry. Hayes’ warning may not be entirely baseless, but based on the current financials, Tether seems able to withstand the scrutiny for now. When it comes to market confidence, data always speaks louder than speculation.

LongTermDreamer · Accepted Answer

Oh wow, a surplus of 6.8 billion does sound nice, but we'll have to wait three years to see if it's real or not.

GetRichLeek · Answer

6.8 billion surplus? Hilarious, this is just Tether's talisman. They're about to start a new round of "sufficient reserves" talk again.

MidsommarWallet · Answer

A surplus of 6.8 billion, right? To put it nicely, the treasury is full, but to put it bluntly, it still depends on whether Tether wants to blow up or not. No matter how good the numbers sound, it doesn't change the fundamental trust crisis in this industry.

SeeYouInFourYears · Answer

Hayes is fearmongering again. With such a huge USDT market, what could possibly go wrong...

If Tether really collapses, we'd be long gone anyway.

Who would believe this $6.8 billion surplus? The auditors sure know what they're doing with their pens.

$10 billion profit in the first three quarters? Those are insane margins, no wonder there are so many die-hard fans.

Adequate reserves are one thing, but I still feel like it's not that simple.

This time Hayes is just riding the hype, classic move.

The data is right here, but the real issues are probably hidden out of sight.

As long as USDT isn't completely transparent, I'll always be worried.