USDT TETHER "DEPEG AND COLLAPSE IS COMING DECEMBER 30! CRYPTO CRASH COMING” 🤨

My Financial Friend

Introduction to USDT Concerns

There is currently a lot of discussion and worry about USDT (Tether) in the crypto community, with some people predicting that it will crash on December 30th. This concern stems from the delisting of USDT from EU centralized exchanges and comparisons to past events like the collapse of FTX and Celsius.

Background on USDT Delisting

  • Delisting Reason: The delisting is due to new EU regulations aiming to follow the Markets in Crypto-Assets (MiCA) rules.
  • Coinbase's Preemptive Move: Coinbase delisted USDT ahead of time, citing a precautionary approach to avoid compliance risks, even though regulators haven't explicitly stated that USDT is non-compliant.
  • Other Exchanges: Other exchanges continue to list USDT, awaits clarity from European authorities on USDT's compliance.

Concerns and FUD (Fear, Uncertainty, and Doubt)

  • Tether's Minting Pause: Tether hasn't minted new coins in over two weeks, sparking concern.
  • Audit Issues: Tether hasn't passed an audit by a major firm, despite having tens of billions under its ownership.
  • Comparisons to Past Collapses: Comparisons are made to the collapse of algorithmic stablecoins like UST, suggesting a potential end to crypto if USDT were to fail.

Counterpoints to Concerns

  • Tether's Financials: Tether has been making billions in profits, has significant reserves, and has made large investments (e.g., $775 million in Rumble), indicating financial stability.
  • Market Cap and Reserves: With a market cap of around $140 billion and the ability to hold significant reserves, Tether seems financially stable.
  • Past Performance: Tether has navigated through previous bear markets without significant issues, suggesting resilience.

Conclusion

  • The current FUD surrounding USDT seems exaggerated, given Tether's financial performance and past stability.
  • While there's always risk, the concerns about USDT's delisting and potential crash appear unfounded, with Tether's significant profits, investments, and ability to maintain stability in turbulent markets.
  • The crypto market is known for its volatility, and stablecoins like USDT play a crucial role; hence, fluctuations and concerns are not uncommon.