Is Tether under scrutiny again? Is the data disproving the doubts or is there a real risk?

Question

[Crypto World] The stablecoin space saw more turbulence this week.

Arthur Hayes, the founder of BitMEX, came out with a warning—saying that if Tether’s reserve assets drop in value, there could be big problems. No sooner had he said this than James Butterfill, Head of Research at CoinShares, immediately responded and pushed back.

On December 5, Butterfill stated quite bluntly in his market report that these concerns are “completely unfounded.” He dug into Tether’s latest audit figures and did the math—reserve assets of $181 billion, liabilities of $174.45 billion, and a net surplus of about $6.8 billion. “Stablecoins do carry risks, that’s true, but current data doesn’t show any systemic issues.”

To drive the point home, Tether made $10 billion in profit in the first three quarters of this year alone. Calling it one of the most profitable companies in the industry is no exaggeration.

So who should you believe? The data is there, but the debate isn’t going away.

StakeWhisperer · Accepted Answer

Tether's ability to make money is truly outrageous, but who can fully trust these numbers...

TradFiRefugee · Answer

Here we go again. I'm already tired of watching these two argue... The data is right here—if something were really going to blow up, it would have happened already, right?

Ser_Liquidated · Answer

Is Tether trying to clear its name again? A $6.8 billion net surplus sounds good, but we all know that stablecoins are just a confidence game.

NFTRegretful · Answer

Hi, is Tether getting dissed again? I'm honestly tired of this storyline. Anyway, the data is right here: $6.8 billion in net surplus. No matter what people say, nothing beats actually making $10 billion. How could anything really go wrong?

ILCollector · Answer

Tether's data can't be faked—there's a $6.8 billion net surplus right there. It's actually those people who keep saying "Tether is going to collapse" who are doing the brainwashing, isn't it?

ForumLurker · Answer

Tether made another 10 billion? This business is just too incredible—it's making money effortlessly.

JustHodlIt · Answer

These numbers from Tether look pretty intimidating, but I still have my doubts... After all, audit reports are basically just for show.

$10 billion in profit? That's some serious bloodsucking—something's bound to go wrong sooner or later.

Hayes' warning this time sounds like he's trying to tank the market, but we can't completely ignore it either.

Having enough reserves is one thing, but transparency has always been a mystery...

Anyway, I wouldn't dare go all in on stablecoins. Feels like the risks are being seriously underestimated.