In accordance with TheCCPress, Arthur Hayes, former BitMEX CEO, has raised concerns over Tether’s reserve strategy, which includes significant holdings in Bitcoin and gold. He warned that a 30% drop in the value of these assets could eliminate Tether’s equity buffer, potentially jeopardizing the stability of USDT. Tether’s CTO, Paolo Ardoino, defended the strategy, calling it 'overcapitalized.' S&P Global Ratings has downgraded USDT’s strength due to its risky reserve composition, and regulatory scrutiny is increasing, particularly regarding the use of gold reserves under the GENIUS Act. Market participants are calling for greater transparency in Tether’s balance sheets to address growing concerns over solvency and liquidity risks.
Tether's Reserve Strategy Sparks Solvency Concerns Amid Market Skepticism
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