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- Financial backers are tracking down a place of refuge in USDC, as per CoinGecko information. Between May 3 and Tuesday, the USDC market capitalization increased by 6.3 percent, representing $3.1 billion in inflows.
- According to the most recent reserves report, the corporation has total assets of at least $78.6 billion, with cash accounting for about $4 billion or 5% of the total.
- The firm has all the earmarks of being ready to keep its money saves. Tether presently holds 6.36 percent of its assets in cash, which amounts to nearly $4.8 billion assuming Tether’s reserves closely reflect the USDT market valuation
The aftermath of Terra’s demise is still being felt, with Tether outflows averaging $1.1 billion per day over the last week. Tether (USDTmarket )’s value fell 7.8% to $76 billion in the last seven days as cryptocurrency investors and dealers cashed out $7.7 billion. According to Tether’s latest reserves report from December 2021, the amount removed from the top stablecoin is nearly double the $4.1 billion it held in cash reserves at the end of 2021.
The Corporation Has Total Assets Of At Least $78.6 Billion
Tether’s peg with the US dollar is maintained by the corporation behind the token backing USDT with assets such as cash, bonds, and Treasury bills, with the goal of each token being backed by at least $1 in assets. According to the most recent reserves report, the corporation has total assets of at least $78.6 billion, with cash accounting for about $4 billion or 5% of the total.
Despite the bank run situation triggered by the collapse of the algorithmic stablecoin TerraUSD (UST), which saw investors leave not only stablecoins but the whole crypto market for fear of collapse, the firm appears to be able to keep its cash reserves. Tether presently holds 6.36 percent of its assets in cash, which amounts to nearly $4.8 billion assuming Tether’s reserves closely reflect the USDT market valuation, according to a separate transparency report updated daily.
Market panic on Thursday prompted USDT/USD to trade below $0.99 on major exchanges, prompting Tether to publish a statement at the time claiming that all redemptions to $1 would be honored. Tether’s chief technical officer Paolo Ardoino claimed in a Twitter space conversation the same day that the majority of the company’s reserves are in US Treasuries and that it has cut its exposure to commercial paper over the last six months.
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Market Capitalization Increased By 6.3 Percent Representing $3.1 Billion In Inflows
Tether has come under fire for its opacity about the assets in its reserve, with its first reserve breakdown coming in May 2021. The specific resources wherein the organization puts are as yet indistinct in the public reports. Due to this mystery, as well as the recent short-lived de-pegging, some investors rushed to swap their Tether for USD Coin (USDC), a popular US dollar stablecoin that was audited and already completely backed by cash and US Treasury bonds.
In reaction to the stablecoin incident, Circle’s chief financial officer Jeremy Fox-Geen wrote a blog post on Friday reiterating that the 50.6 billion USDC in circulation was entirely backed by cash and US Treasury bonds. Financial backers are tracking down a place of refuge in USDC, as per CoinGecko information. Between May 3 and Tuesday, the USDC market capitalization increased by 6.3 percent, representing $3.1 billion in inflows.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
