Citing Criptonoticias, Arthur Hayes, co-founder of BitMEX, and Paolo Ardoino, CEO of Tether, have exchanged views on the financial strategy of Tether, the issuer of the largest stablecoin, USDT. Hayes argues that Tether is engaging in a 'massive operation' based on interest rates, shifting reserves into assets like gold and Bitcoin (BTC) as a hedge against potential Federal Reserve rate cuts. He warns that a 30% drop in the value of BTC and gold could threaten Tether's solvency. Ardoino dismissed Hayes' analysis as fear-mongering, emphasizing that Tether holds $181.5 billion in reserves, including $9.856 billion in BTC and $12.92 billion in precious metals, and has $7 billion in excess capital. He criticized Hayes and S&P Global for ignoring Tether's additional capital and monthly profits from U.S. Treasury bonds.
Arthur Hayes and Paolo Ardoino Clash Over Tether's Financial Strategy
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