Stablecoin

Should we worry about Tether?

Understand the risk behind the assets backing USDT

Published in
6 min readMay 19, 2021

--

Credit: Tether

Tether released for the first time the asset breakdown composing its reserve 6 days ago (May 13th, 2021). This act of transparency is much appreciated. It gives us very useful information to try to understand the risk by using Tether. In this article, I explain why it’s important to know what kind of assets back this stable coin. I also share with you my assessments regarding liquidity and risk of these assets.

Why liquidity and risk assessment matters? and why amount of cash doesn’t ?

Credit: Tether

I read a lot of comments to the above tweet. Investors seem to share the same concerns: USDT is not backed at 100% by cash. I can understand because cash is certainly the safest way to do it. Nevertheless, there are so many cash-proxies that pay more than…

--

--

ValExplorer
Coinmonks

DeFi analyst looking for undervalued cryptocurrencies across the blockchains.