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"The market capitalization of the leading stablecoin, Tether (USDT), broke a historic record this month, currently reported at $84,009,504,538.
As the Federal Reserve began aggressively increasing interest rates last year, Tether's Comprehensive Reserve Reports (CRR) for 2023, disclosed in the past two quarters, have reported net profits exceeding $1 billion each. The excess reserve fund has been increased to $3.3 billion, showcasing remarkable profit-generating capabilities.
Tether has faced regulatory scrutiny and occasional FUD (Fear, Uncertainty, Doubt) in the past, but it continues to maintain its leading position in the market, with a market capitalization more than three times that of the second-largest stablecoin, USDC.
Tether, created in 2014, was founded by a team including Brock Pierce, Reeve Collins, and Craig Sellars, initially under the name ""Realcoin."" Shortly after, it was rebranded as Tether and released in a private testing phase, beginning its journey to become a central bank in the world of cryptocurrencies.
USDT, also known as Tether, is fully backed by legal tender currency, with each USDT representing one U.S. dollar. It is used for various purposes, including cryptocurrency trading, cross-border remittances, and as a store of value. Due to its relative stability compared to tokens like Bitcoin and Ethereum, many investors use USDT to mitigate the volatility risks.
Since its inception, USDT has remained the most popular stablecoin in the cryptocurrency market and currently holds the title of the largest stablecoin by market capitalization globally.
Tether and Bitfinex are under the parent company iFinex, which was established in Hong Kong in 2012. Bitfinex, founded in 2012, is a cryptocurrency exchange that offers various services, including spot trading, derivatives trading, and collateralized lending. It is best known for its dollar lending services.
However, Bitfinex has faced challenges in its history, including a significant hack in 2016 when it lost approximately 119,756 BTC (around $75 million at that time). The hack was one of the largest in the cryptocurrency industry. In recent developments, it seems that the identity of the hacker may soon be revealed.
Tether and Bitfinex were sued by the U.S. Commodity Futures Trading Commission (CFTC) in September 2021 for allegedly engaging in fraudulent activities, including faking trading volume and misappropriating customer funds, as well as violating anti-money laundering regulations.
After over a year of litigation, Tether and Bitfinex reached a settlement with the CFTC in October 2022. The settlement terms included Tether paying a $41 million fine to the CFTC, and Bitfinex paying a $1.5 million fine for allowing U.S. residents to engage in retail trading.
Tether's transparency regarding its reserves has evolved over the years. Initially, the company did not provide clear information about its reserves. However, in recent years, Tether began disclosing reserve data and started providing regular reserve reports.
In the second quarter of the year, Tether released a detailed reserve report, audited by the top-five global auditing firm BDO. This report revealed the assets held by Tether Group as of June 30. Tether's operational net profit exceeded $1 billion once again in the second quarter, and the excess reserve reached $3.3 billion, setting a new record.
In response to the growing demand for transparency, Tether plans to release ""real-time reserve data"" in 2024, according to sources. Paolo Ardoino, the incoming CEO of Tether, has emphasized the importance of transparency and intends to address the transparency issue regarding Tether's reserves." |
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Post time 27-10-2023 09:40:49
