Cryptocurrency News, Terra (LUNA)

Tether Now Offers USDT on Polygon

A stablecoin made by Tether is now available on Polygon’s platform. First produced on BTC’s Omni Layer, Tether has spread to other networks, including TRON and ETH. It has resulted in higher trade volumes and liquidity for the currency.

Tether has a market cap of roughly $76.8B, placing it behind only ETH and BTC. Tether had previously announced the release of a new coin linked to the MXNT. The token will help the company gain more attention and influence in Latin America.

Most stablecoins have support from cash reserves. Most of which provide adequate collateral if users choose to withdraw their assets. UST is among a new generation of “algorithmic” stablecoins. It attempts to rely on code for their USD-peg. The Terra UST fall has tested investors’ faith in stablecoins.

They’ve wiped off more than $60B TerraUSD in only a few days. And that’s because of its algorithmic stablecoin and its companion LUNA token. Investors withdrew over $7B from Tether after quickly losing its USD peg. Tether recently declared $82.4B in total assets.

Tether distributed its consolidated reserves analysis on 19th May. It displays a 17% fall in commercial study from $24.2B to $19.9B quarterly. Additionally, the group’s assets in the cash market and US Treasury notes rose by over 13%, from $34.5B to $39.2B.

Investors Took Out $7B in USDT

When USDT fell below $1 for a brief period last week, several investors rushed to withdraw $7B from Tether. It raises worries that the most famous stablecoin is truly 100% supported. After the failure of the UST, the price dropped to $0.95. 

Upon investigation, there was a discovery. The short-term commercial documents were also used as Tether collaterals as part of a payment with the New York attorney general. After the loss of the UST peg and the withdrawal of $7B from Tether, there are concerns that USDT may not get complete support again. 

Tether recently revealed that the stablecoin has support from only $4.2B. The remaining Treasury bills and commercial paper without name total $34.5B. Tether told CNBC last year that it’ll produce a full audit of USDT reserves. But that was within a few months after many requests. But the audit is not yet complete.

Paolo Ardoino Has Completely Supported Tether

Paolo Ardoino replied to Ki Young Ju’s post on Twitter. It’s been a long time coming. But, the CEO of Tether’s on-chain data platform asked when the crypto community will learn if the $75B USDT in reserves is fully backed.

Ardoino tweeted that few financial companies can redeem $7B in under 48 hours. The firm can keep redeeming more USDT if investors want to take them out. But that’s because Tether has enough cash to payout investments. He emphasized that USDT is fully supported.

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