After the collapse of Terra, exits from Tether reached an average of $ 1.1 billion per day.
Cryptocurrency investors and traders have earned $7.7 billion from Tether. This caused the market to drop to $76 billion.
According to Tether’s latest 2021 reserve report, the amount withdrawn from the largest stablecoin is almost double the $4.1 billion it held in cash reserves at the end of 2021.
It backs USDT with assets such as cash, bonds, and Treasury bills so that Tether is pegged to the US dollar.
According to the latest report, the company has total assets of at least $78.6 billion, of which approximately $4 billion, or 5%, is cash.
Despite the collapse of TerraUSD (UST), the firm was able to maintain its cash reserves.
Another report shows that 6.36% of Tether’s assets are currently held in cash. This value is roughly $4.8 billion.
Market panic on Thursday caused USDT/USD to trade below $0.99 on major exchanges.
Paolo Ardoino said in a Twitter space chat that most of the company’s reserves are in U.S. Treasuries, reducing its exposure to commercial papers over the past six months.
The issue of assets the company invests in is still unclear.
This uncertainty, combined with the recent short-term de-pegging, has caused some investors to rush to replace their Tethers with another popular US dollar stablecoin, the USD Coin (USDC), on the idea that USDC is regulated and already fully backed by cash. .
Circle’s chief financial officer, Jeremy Fox-Geen, confirmed that USD Coin is backed entirely by cash and US Treasuries for the 50.6 billion USDC in circulation.
According to another report, It shows that investors have found USDC a safe haven. USDC market cap jumped 6.3% between May 3 and Tuesday, representing an inflow of $3.1 billion during that time.
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