Hey, fellow cryptocurrency enthusiasts, today we need to talk about something big—USDT and Tether! Do you often hear rumors that 'Tether is going to run away, USDT is going to crash'? But did you know that Tether's net profit in the first quarter reached a whopping $4.5 billion? This is simply the money printing machine of the cryptocurrency world!
So, will USDT really crash? Some people, when they mention the cryptocurrency world, say it’s a Ponzi scheme, all a scam. Bitcoin is a tool for the US government to exploit the masses, and USDT is a product of Wall Street fraud. But is the truth really like that?
Let’s first talk about Tether and USDT. Some say that USDT is over-printed, and trust has decreased, so it will crash. Come on, go take a look at Tether's official website; they have audit reports every quarter, openly and transparently. How could they over-issue?
Some people say that Tether misappropriated funds to trade contracts, resulting in a collapse. This is even more absurd! The details of Tether's fund reserves are all on their official website; most of the funds are invested in US Treasury bonds, reverse repos, and money market funds, which are very low-risk assets. How could it collapse?
Next, let’s talk about USDT’s profit model. They have multiple ways to make money! For example, interest; after users deposit fiat currency, Tether uses it to buy US Treasury bonds, with an annual yield of about 4%-5%. There are also service fees; each user has to pay $150, and there’s a 0.1% fee for deposits and withdrawals. In addition, Tether issues USDT to businesses, collects interest, and even buys USDT at low prices when there are news events causing it to lose its peg, then sells it at normal prices once the panic passes, making a profit back and forth!
As for Tether's expenses, they are actually not high. Employee and venue costs are routine, and they haven't spent on advertising on YouTube or Google, saving money while being efficient! Compared to those exchanges and project teams that are laying off staff and cutting salaries, Tether's profits are as stable as a mountain!
Therefore, as a unique giant in the cryptocurrency world, combining functions of banks and central banks, Tether and USDT really find it hard to lose money!
Finally, let me share a little insider information: the director has recently been observing the puppies project on the Ethereum chain, which Elon Musk mentioned in a tweet! It feels like it has great potential! What do you all think?
