Symfony Profiler

"App\Controller\ArticleController::show"

"security.firewall.map.context.main"

Symfony\Component\WebLink\GenericLinkProvider {#3548
  -links: [
    3669 => Symfony\Component\WebLink\Link {#3669
      -href: "/build/runtime.js"
      -rel: [
        "preload" => "preload"
      ]
      -attributes: [
        "as" => "script"
      ]
    }
    3667 => Symfony\Component\WebLink\Link {#3667
      -href: "/build/644.js"
      -rel: [
        "preload" => "preload"
      ]
      -attributes: [
        "as" => "script"
      ]
    }
    3666 => Symfony\Component\WebLink\Link {#3666
      -href: "/build/502.js"
      -rel: [
        "preload" => "preload"
      ]
      -attributes: [
        "as" => "script"
      ]
    }
    3665 => Symfony\Component\WebLink\Link {#3665
      -href: "/build/app.js"
      -rel: [
        "preload" => "preload"
      ]
      -attributes: [
        "as" => "script"
      ]
    }
    3664 => Symfony\Component\WebLink\Link {#3664
      -href: "/build/view-more.js"
      -rel: [
        "preload" => "preload"
      ]
      -attributes: [
        "as" => "script"
      ]
    }
    3663 => Symfony\Component\WebLink\Link {#3663
      -href: "/build/term-condition.js"
      -rel: [
        "preload" => "preload"
      ]
      -attributes: [
        "as" => "script"
      ]
    }
    3662 => Symfony\Component\WebLink\Link {#3662
      -href: "/build/contact.js"
      -rel: [
        "preload" => "preload"
      ]
      -attributes: [
        "as" => "script"
      ]
    }
    3661 => Symfony\Component\WebLink\Link {#3661
      -href: "/build/scroll-infinite-article.js"
      -rel: [
        "preload" => "preload"
      ]
      -attributes: [
        "as" => "script"
      ]
    }
    3660 => Symfony\Component\WebLink\Link {#3660
      -href: "/build/app.css"
      -rel: [
        "preload" => "preload"
      ]
      -attributes: [
        "as" => "style"
      ]
    }
    3659 => Symfony\Component\WebLink\Link {#3659
      -href: "/build/cookie-style.css"
      -rel: [
        "preload" => "preload"
      ]
      -attributes: [
        "as" => "style"
      ]
    }
    3658 => Symfony\Component\WebLink\Link {#3658
      -href: "/build/term-condition-css.css"
      -rel: [
        "preload" => "preload"
      ]
      -attributes: [
        "as" => "style"
      ]
    }
    3657 => Symfony\Component\WebLink\Link {#3657
      -href: "/build/contact-css.css"
      -rel: [
        "preload" => "preload"
      ]
      -attributes: [
        "as" => "style"
      ]
    }
    3656 => Symfony\Component\WebLink\Link {#3656
      -href: "/build/comment-css.css"
      -rel: [
        "preload" => "preload"
      ]
      -attributes: [
        "as" => "style"
      ]
    }
  ]
}

"article_show"

[
  "category" => "financial"
  "slug" => "tether-may-be-backed-by-more-than-just-dollars"
]

"_security_main"

"de6104"

"financial"

"tether-may-be-backed-by-more-than-just-dollars"

"*/*"

"gzip, br, zstd, deflate"

"close"

"PHPSESSID=opbe77fh48fctuvnmqt8m62cbn"

"rct.dev.bbntimes.com"

"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)"

"1"

"no-cache, private"

"text/html; charset=UTF-8"

"Sat, 22 Feb 2025 13:22:46 GMT"

"</build/runtime.js>; rel="preload"; as="script",</build/644.js>; rel="preload"; as="script",</build/502.js>; rel="preload"; as="script",</build/app.js>; rel="preload"; as="script",</build/view-more.js>; rel="preload"; as="script",</build/term-condition.js>; rel="preload"; as="script",</build/contact.js>; rel="preload"; as="script",</build/scroll-infinite-article.js>; rel="preload"; as="script",</build/app.css>; rel="preload"; as="style",</build/cookie-style.css>; rel="preload"; as="style",</build/term-condition-css.css>; rel="preload"; as="style",</build/contact-css.css>; rel="preload"; as="style",</build/comment-css.css>; rel="preload"; as="style""

"1b0bb4"

"opbe77fh48fctuvnmqt8m62cbn"

"Sat, 22 Feb 25 13:22:42 +0000"

"Sat, 22 Feb 25 13:22:44 +0000"

0

"Zue3yNiGku52O3O_FD_V3rMRruhlTrCoiaJxJalOURs"

"7fl3IrYhaI3vDa-nW9FotT7MaVOUetQj7bQyuuAMotQ"

"dev"

"0a988e63f011514eaabfc650b599af4d"

"*"

"mysql://bbndb_rctuser:33F5W25z40or0f7@localhost:3306/rct_bbntimes"

"6LdV5fgpAAAAANxzTG8ZMfIjil1wu-1vrQvnUt-x"

"6LdV5fgpAAAAAENKcn73MJAhQrbtQeqgyC4wDLMP"

"smtp://no-reply%40rct.dev.bbntimes.com:Bl6%26gLD48%26Of919@rct.dev.bbntimes.com:465"

"i!87pK&!85ezc8"

"1"

"/public"

"/var/www/vhosts/dev.bbntimes.com/rct.dev.bbntimes.com"

""

"/var/www/vhosts/dev.bbntimes.com/rct.dev.bbntimes.com"

"RESPONDER"

"CGI/1.1"

"on"

"*/*"

"gzip, br, zstd, deflate"

"close"

"PHPSESSID=opbe77fh48fctuvnmqt8m62cbn"

"rct.dev.bbntimes.com"

"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)"

"0"

"0"

"/usr/local/sbin:/usr/local/bin:/usr/sbin:/usr/bin:/sbin:/bin:/snap/bin"

"/public/index.php"

"plesk-php81-fastcgi"

"/var/www/vhosts/system/rct.dev.bbntimes.com/etc/php.ini"

""

"/public"

"on"

"0"

"0"

"on"

"0"

"0"

"https://rct.dev.bbntimes.com/financial/tether-may-be-backed-by-more-than-just-dollars"

"/financial/tether-may-be-backed-by-more-than-just-dollars"

"rct.dev.bbntimes.com"

"200"

"Z7nPpbiBoyj8JZ8-HGyAlQAAABQ"

"https://rct.dev.bbntimes.com/financial/tether-may-be-backed-by-more-than-just-dollars"

"/financial/tether-may-be-backed-by-more-than-just-dollars"

"rct.dev.bbntimes.com"

"200"

"Z7nPpbiBoyj8JZ8-HGyAlQAAABQ"

"/public/financial/tether-may-be-backed-by-more-than-just-dollars"

"3.148.104.65"

"13516"

"GET"

"https"

1740230565

1740230565.7544

"/financial/tether-may-be-backed-by-more-than-just-dollars"

"/var/www/vhosts/dev.bbntimes.com/rct.dev.bbntimes.com/public/index.php"

"/public/index.php"

"https://rct.dev.bbntimes.com/financial/tether-may-be-backed-by-more-than-just-dollars"

"/financial/tether-may-be-backed-by-more-than-just-dollars"

"5.196.1.209"

"[no address given]"

"rct.dev.bbntimes.com"

"443"

"HTTP/1.1"

"<address>Apache Server at rct.dev.bbntimes.com Port 443</address>\n"

"Apache"

"rct.dev.bbntimes.com"

"APP_ENV,APP_SECRET,DATABASE_URL,MARIADB_PASSWORD,CORS_ALLOW_ORIGIN,MAILER_DSN,GOOGLE_RECAPTCHA_SECRET_KEY,GOOGLE_RECAPTCHA_SITE_KEY"

"Z7nPpbiBoyj8JZ8-HGyAlQAAABQ"

"App\Controller\CookieController::renderAnalysis"

"html"

"en"

"23b5f0"

"App\Controller\AppController::renderHeader"

"html"

"en"

"e9b3a6"

"home"

"App\Controller\ArticleController::trendingArticle"

"html"

"en"

"9d3056"

"Finance"

"App\Controller\ArticleController::relatedArticles"

"html"

"en"

"70ceef"

App\Entity\Article {#1094
  -id: 8881
  -title: "Tether May be Backed by More than Just Dollars"
  -slug: "tether-may-be-backed-by-more-than-just-dollars"
  -introtext: "<p><span style="color: #000000;">Tether is no stranger to controversy, but as it turns out, the oft-maligned stablecoin may have more than a few aces up its sleeves.</span></p>\r\n"
  -content: """
    \r\n
    <p id="88d0" class="ie if ig ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" style="padding-left: 30px;" data-selectable-paragraph><span style="color: #000000;">For it will be like a man going on a journey, who called his servants[a] and entrusted to them his property.</span></p>\r\n
    <p id="a770" class="ie if ig ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" style="padding-left: 30px;" data-selectable-paragraph><span style="color: #000000;">To one he gave five talents, to another two, to another one, to each according to his ability. Then he went away.</span></p>\r\n
    <p id="c0c7" class="ie if ig ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" style="padding-left: 30px;" data-selectable-paragraph><span style="color: #000000;">He who had received the five talents went at once and traded with them, and he made five talents more.</span></p>\r\n
    <p id="d81d" class="ie if ig ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" style="padding-left: 30px;" data-selectable-paragraph><span style="color: #000000;">So also he who had the two talents made two talents more. 18 But he who had received the one talent went and dug in the ground and hid his master’s money.</span></p>\r\n
    <p id="0985" class="ie if ig ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" style="padding-left: 30px;" data-selectable-paragraph><span style="color: #000000;">Now after a long time the master of those servants came and settled accounts with them.</span></p>\r\n
    <p id="7e3f" class="ie if ig ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" style="padding-left: 30px;" data-selectable-paragraph><span style="color: #000000;">And he who had received the five talents came forward, bringing five talents more, saying, ‘Master, you delivered to me five talents; here, I have made five talents more.’</span></p>\r\n
    <p id="dca9" class="ie if ig ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" style="padding-left: 30px;" data-selectable-paragraph><span style="color: #000000;">His master said to him, ‘Well done, good and faithful servant.[c] You have been faithful over a little; I will set you over much. Enter into the joy of your master.’</span></p>\r\n
    <p id="d424" class="ie if ig ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" style="padding-left: 30px;" data-selectable-paragraph><span style="color: #000000;">And he also who had the two talents came forward, saying, ‘Master, you delivered to me two talents; here, I have made two talents more.’</span></p>\r\n
    <p id="8e9c" class="ie if ig ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" style="padding-left: 30px;" data-selectable-paragraph><span style="color: #000000;">His master said to him, ‘Well done, good and faithful servant. You have been faithful over a little; I will set you over much. Enter into the joy of your master.’</span></p>\r\n
    <p id="e252" class="ie if ig ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" style="padding-left: 30px;" data-selectable-paragraph><span style="color: #000000;">He also who had received the one talent came forward, saying, ‘Master, I knew you to be a hard man, reaping where you did not sow, and gathering where you scattered no seed, so I was afraid, and I went and hid your talent in the ground. Here, you have what is yours.’</span></p>\r\n
    <p id="dd7d" class="ie if ig ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" style="padding-left: 30px;" data-selectable-paragraph><span style="color: #000000;">But his master answered him, ‘You wicked and slothful servant! You knew that I reap where I have not sown and gather where I scattered no seed? Then you ought to have invested my money with the bankers, and at my coming I should have received what was my own with interest.’</span></p>\r\n
    <p id="ca9c" class="ie if ig ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" style="padding-left: 30px;" data-selectable-paragraph><span style="color: #000000;">‘So take the talent from him and give it to him who has the ten talents. For to everyone who has will more be given, and he will have an abundance.’</span></p>\r\n
    <p id="1778" class="ie if ig ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" style="padding-left: 30px;" data-selectable-paragraph><span style="color: #000000;">‘But from the one who has not, even what he has will be taken away. And cast the worthless servant into the outer darkness. In that place there will be weeping and gnashing of teeth.’</span></p>\r\n
    <p id="8e6f" class="ie if ig ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" style="padding-left: 30px;" data-selectable-paragraph><span style="color: #000000;">— Matthew 25:14–30, English Standard Version</span></p>\r\n
    <p id="f0d1" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq jb" data-selectable-paragraph><span style="color: #000000;"><span class="s jc jd je jf jg jh ji jj jk hr">F</span>rom allegations that the dollar-based stablecoin has been used to manipulate the price of Bitcoin, to questions over whether every single Tether is backed by its equivalent in dollars, Tether, has had its fair share of controversies.</span></p>\r\n
    <p id="a6bc" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">Yet Tether, which was the world’s first stablecoin, has also served the development and growth of the cryptocurrency markets.</span></p>\r\n
    <p id="aaa0" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">As a digital halfway house between actual dollars and cryptocurrencies, Tether or USDT (as it is referred to) has long been a convenient place for traders to park their cryptocurrency gains while waiting for buying opportunities, or to purchase the myriad derivatives denominated in USDT.</span></p>\r\n
    <p id="1585" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">But fresh disclosures from Tether now suggest that it has quietly become one of the largest investors in the U.S. commercial paper market.</span></p>\r\n
    <h2 id="efe7" class="jl jm dt ce jn jo jp eu jq jr js ex jt ey ju fa jv fb jw fd jx fe jy fg jz ka eq" data-selectable-paragraph><span style="color: #10228b;">A Paper Tiger</span></h2>\r\n
    <p id="c5c1" class="ie if dt ih b es kb ij ik ev kc im in io kd iq ir is ke iu iv iw kf iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">According to estimates from JPMorgan Chase, Tether’s holdings in the market for U.S. corporate debt, rivals that of massive asset managers like Vanguard and BlackRock, while dwarfing those of tech giants like Google and Apple.</span></p>\r\n
    <p id="768f" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">That Tether has never&nbsp;<em class="ig">really&nbsp;</em>been backed by its equivalent in dollars has long been a contentious issue.</span></p>\r\n
    <p id="7120" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">At its inception, Tether maintained that every USDT minted was backed by a dollar in a bank account, but produced no audit report to back up those claims, instead relying on a report from accounting firm Friedman LLP that was done on a consulting basis.</span></p>\r\n
    <p id="ab71" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">Even Tether itself conceded at the time that,</span></p>\r\n
    <p id="17ca" class="ie if ig ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" style="padding-left: 30px;" data-selectable-paragraph><span style="color: #000000;">“These consulting services consulting services do not constitute an audit or attestation engagement, which would include a significantly expanded scope of procedures and take substantially more time to complete.”</span></p>\r\n
    <p id="d00a" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">When the New York State Attorney General started investigating Tether and its parent companies in 2019, the stablecoin issuer quickly changed its assertions on its website that it was backed 1-for-1 to the dollar, stating instead that Tether was backed by “cash equivalents.”</span></p>\r\n
    <p id="8f9b" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">And as any music fan will tell you, “equivalents” is not the same as the real deal.</span></p>\r\n
    <p id="572f" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">Nobody flies to Las Vegas to pay US$500 to see a Celine Dion “equivalents” concert.</span></p>\r\n
    <p id="a55e" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">By early 2019, as the investigative noose tightened around Tether, its general counsel conceded that the stablecoin was only about 74% backed by fiat equivalents, as of April 30, 2019.</span></p>\r\n
    <p id="2106" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">So not quite 100%, but ok, fractional reserve banking is still a thing no?</span></p>\r\n
    <h2 id="d55a" class="jl jm dt ce jn jo jp eu jq jr js ex jt ey ju fa jv fb jw fd jx fe jy fg jz ka eq" data-selectable-paragraph><span style="color: #10228b;">Not Quite Cash</span></h2>\r\n
    <p id="5fc7" class="ie if dt ih b es kb ij ik ev kc im in io kd iq ir is ke iu iv iw kf iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">By last month, any pretense that USDT was backed by a Scrooge McDuck-type money pit was laid to rest when Tether revealed that USDT was just backed up by 2.9% in actual cash.</span></p>\r\n
    <p id="a2f7" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">So where did the rest of the money go? To better places it would seem.</span></p>\r\n
    <p id="7c3f" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">Because holding cash is the equivalent of burying talents in the ground, Tether actually applied the monies that back USDT to other uses.</span></p>\r\n
    <p id="4961" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">In May this year, Tether provided a breakdown of those reserves, as part of a settlement with the New York Attorney General, that revealed Tether’s holdings of just under US$30 billion in commercial paper, a short-dated investment similar to cash.</span></p>\r\n
    <p id="3da8" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">If true, Tether’s holdings of commercial paper would be the seventh-largest in the world.</span></p>\r\n
    <p id="1ed0" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">According to JPMorgan Chase analysts, the large commercial paper holdings may suggest that Tether is still struggling to find a bank willing to take its cash as a deposit.</span></p>\r\n
    <p id="1b5e" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">For Tether, this lack of access to banking facilities is not new, and lies at the heart of why it got into so much trouble to begin with.</span></p>\r\n
    <h2 id="1c85" class="jl jm dt ce jn jo jp eu jq jr js ex jt ey ju fa jv fb jw fd jx fe jy fg jz ka eq" data-selectable-paragraph><span style="color: #10228b;">Money Everywhere, But Not a Bank to Take It</span></h2>\r\n
    <p id="78c3" class="ie if dt ih b es kb ij ik ev kc im in io kd iq ir is ke iu iv iw kf iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">In the beginning, Tether was processing its dollar transactions through Taiwanese banks, which in turn, sent the money through Wells Fargo, an American bank, to allow the funds to move outside Taiwan.</span></p>\r\n
    <p id="625a" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">But by April 2017, these international transfer were blocked, leading to Tether filing suit against Wells Fargo in the U.S., a lawsuit which was dropped just a week later.</span></p>\r\n
    <p id="1212" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">Because it had been unable to obtain a normal banking relationship, Tether was then alleged to have deposited over US$1 billion with a Panamanian payment processor known as Crypto Capital, where things got far more muddled.</span></p>\r\n
    <p id="b01f" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">According to the New York Attorney General, the funds were allegedly co-mingled corporate and client deposits and no contract was ever signed with Crypto Capital.</span></p>\r\n
    <p id="5e18" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">In the New York Attorney General’s investigation, it was alleged that by 2018, both cryptocurrency exchange Bitfinex (the cryptocurrency exchange tied to Tether) and Tether knew, or had suspected that Crypto Capital had absconded with the money but had never informed investors of the loss.</span></p>\r\n
    <p id="5967" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">Tether roundly refutes these reports and allegations that USDT is used to manipulate the price of Bitcoin.</span></p>\r\n
    <p id="3cc9" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">But correlation is not causation.</span></p>\r\n
    <p id="7cc0" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">In fact, there is growing evidence that even if USDT was used in the past to manipulate the price of Bitcoin, the most recent rally may have had less to do with the controversial stablecoin.</span></p>\r\n
    <p id="fc99" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">During the first quarter of 2021, just as Bitcoin’s price rose, it wasn’t just USDT which saw an increase in its market cap, but USDC, a regulated stablecoin and BUSD, a dollar-based stablecoin issued by cryptocurrency exchange Binance, rose as well.</span></p>\r\n
    <p id="475f" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">And although USDT’s rise was far faster than that of USDC and BUSD, the simple reason for that could have been because USDT has far more trading pairs than the latter two, and would be in greater demand as the cryptocurrency market as a whole was rallying.</span></p>\r\n
    <p id="817d" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">As part of its settlement with the New York Attorney General, Tether is required to disclose its holdings every quarter, but has no obligation to make those disclosures public.</span></p>\r\n
    <p id="2510" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">The New York Attorney General’s Office has not commented on whether Tether’s most recent report satisfied the requirements of its settlement agreement.</span></p>\r\n
    <p id="1493" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">In February this year, as part of the settlement agreement with Tether, New York Attorney General Letitia James remained critical of the stablecoin issuer,</span></p>\r\n
    <p id="b89b" class="ie if ig ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" style="padding-left: 30px;" data-selectable-paragraph><span style="color: #000000;">“Tether’s claims that its virtual currency was fully backed by US dollars at all times was a lie.”</span></p>\r\n
    <p id="b136" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">According to the Attorney General’s investigation, there were instances when Tether was not fully backed in the past, but it is highly doubtful if any investors at this stage are still relying on USDT being backed 1-to-1 by dollars.</span></p>\r\n
    <p id="a351" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">Cryptocurrency traders and USDT holders have demonstrated that they are more than willing to play the game of “Pass the Parcel,” betting that if Tether should fail, they wouldn’t be the one holding the can.</span></p>\r\n
    <p id="d415" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">Tether for its part paid a US$18.5 million fine to the New York Attorney General’s Office, with no admission of wrongdoing.</span></p>\r\n
    <p id="3a26" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">And even now, Tether is making it patently clear that every USDT is not backed by a dollar, but equivalents.</span></p>\r\n
    <p id="5d49" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">However, a closer examination of those equivalents may make Tether seem intrinsically worth more than just dollars.</span></p>\r\n
    <h2 id="ed76" class="jl jm dt ce jn jo jp eu jq jr js ex jt ey ju fa jv fb jw fd jx fe jy fg jz ka eq" data-selectable-paragraph><span style="color: #10228b;">A Dollar By Any Other Name</span></h2>\r\n
    <p id="fd5a" class="ie if dt ih b es kb ij ik ev kc im in io kd iq ir is ke iu iv iw kf iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">While commercial paper, of the kind that Tether holds in the billions, is not cash, it is often seen as the equivalent of cash, and more importantly, pays an interest rate, albeit fixed.</span></p>\r\n
    <p id="7a2f" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">Yet anyone with USDT, looking to cash out to dollars directly with Tether, won’t be receiving any of that interest, and getting just the dollars they’re swapping for.</span></p>\r\n
    <p id="988d" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">Nor will USDT attract any of the other interest payments that Tether receives through its complex holdings of commercial paper, debt and other securities, including gold.</span></p>\r\n
    <p id="0368" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">In essence, Tether is acting like a bank, with USDT holders acting like its depositors, without Tether ever having to pay its deposit holders any interest.</span></p>\r\n
    <p id="c53c" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">The only reason that USDT is not worth more than the dollar is because Tether isn’t paying out any interest on its deposits.</span></p>\r\n
    <p id="b4c3" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">But therein lies another problem, what&nbsp;<em class="ig">can</em>&nbsp;Tether do with all the income that it generates from its reserves?</span></p>\r\n
    <p id="a0a2" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">The most obvious thing to do of course would be to buy more Bitcoin or any other cryptocurrency for that matter.</span></p>\r\n
    <p id="575a" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">By pushing up the price of Bitcoin, demand for USDT goes up, as it has been consistently shown to do over the past seven years.</span></p>\r\n
    <p id="6ecc" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">With more USDT, Tether can then buy more securities, and use the income generated from those securities to buy more Bitcoin,&nbsp;<em class="ig">ad infinitum</em>.</span></p>\r\n
    <p id="5cef" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">And even if Tether itself is not pushing up the price of Bitcoin, the mere presence of so much USDT swishing around in the system, provides plenty of dry powder to pump up the price of Bitcoin by traders.</span></p>\r\n
    <p id="8cf6" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">Glassnode, a blockchain data analytics firm (full disclosure, Novum Alpha uses their service), presents this relationship between Bitcoin and stablecoins in the form of the&nbsp;Stablecoin Supply Ratio&nbsp;or SSR.</span></p>\r\n
    <p id="5140" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">According to Glassnode, if the price of Bitcoin is low, stablecoin supply is able to buy a larger proportion of the circulating Bitcoin supply and therefore push its price up.</span></p>\r\n
    <p id="9ce9" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">But as the price of Bitcoin goes up, that supply of stablecoins is able to purchase fewer and fewer Bitcoin on the market, which reduces its ability to move the price upwards.</span></p>\r\n
    <p id="bdb1" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">And data from Glassnode reveals that the growth of stablecoins throughout 2020–2021 held the SSR metric at historical lows, resulting in an explosive rally in Bitcoin.</span></p>\r\n
    <p id="a7e3" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">But as Bitcoin hit a new all-time-high, stablecoin growth started to plateau and the sharp drop in price has seen the market cap of stablecoins like USDT and USDC essentially stay unchanged over the past month since Bitcoin has come off its all-time-high.</span></p>\r\n
    <h2 id="c969" class="jl jm dt ce jn jo jp eu jq jr js ex jt ey ju fa jv fb jw fd jx fe jy fg jz ka eq" data-selectable-paragraph><span style="color: #10228b;">So Where Do We Go From Here?</span></h2>\r\n
    <p id="f204" class="ie if dt ih b es kb ij ik ev kc im in io kd iq ir is ke iu iv iw kf iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">The important thing to note is that stablecoin market cap has flattened, but not shrunk, meaning that if traders are looking to exit the cryptocurrency ecosystem altogether, they’ve not been voting with their feet.</span></p>\r\n
    <p id="169c" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">If USDT’s backing was a matter of concern for investors, it’s not apparent, but that Tether is having a free lunch at the expense of its depositors should be.</span></p>\r\n
    <p id="67aa" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">For so long as Tether adopts any reserve structure that isn’t the equivalent of dollars in the bank, it’s basically behaving as a bank and each USDT should be seen more as a promissory note than digital tender (not quite legal as yet).</span></p>\r\n
    <p id="2c85" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">To be sure, Tether may not have much choice in the matter.</span></p>\r\n
    <p id="de5e" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">Had banks been willing to bank Tether from the get-go, Tether may not have had to adopt this convoluted reserve structure to begin with, but that it has been forced to, may actually make USDT more valuable than its fiat currency cousin.</span></p>\r\n
    <p id="d0c6" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">Since Tether is looking to best avoid controversy, it can’t actually be paying out interest on USDT deposits — which is essentially what every holding of USDT is — a deposit with the “Bank of Tether.”</span></p>\r\n
    <p id="3238" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">Unlike holding the greenback which generates no yield, Tether’s reserves actually do, regardless of how small.</span></p>\r\n
    <p id="b786" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">Whether or not Tether’s capital structure will raise the ire of regulators or not remains to be seen, but it would be unfortunate if Tether was punished for applying itself.</span></p>\r\n
    <p id="88f4" class="ie if dt ih b es ii ij ik ev il im in io ip iq ir is it iu iv iw ix iy iz ja dl eq" data-selectable-paragraph><span style="color: #000000;">It seems USDT users are more than happy to accept asset-backed Tethers.</span></p>
    """
  -user: Proxies\__CG__\App\Entity\User {#1092 …}
  -createdAt: DateTime @1624297349 {#1145
    date: 2021-06-21 17:42:29.0 UTC (+00:00)
  }
  -updatedAt: DateTime @1624297495 {#1150
    date: 2021-06-21 17:44:55.0 UTC (+00:00)
  }
  -deletedAt: null
  -category: App\Entity\Category {#445 …}
  -status: "published"
  -imageCard: Proxies\__CG__\App\Entity\File {#1184 …}
  -ImageHeader: Proxies\__CG__\App\Entity\File {#1184 …}
  -featured: false
  -mainView: false
  -clicks: 4232
  -comments: Doctrine\ORM\PersistentCollection {#1125 …}
  -reviewed_at: DateTime @1624297349 {#1148
    date: 2021-06-21 17:42:29.0 UTC (+00:00)
  }
  -metakey: "Tethers May be Backed by More than Just Dollars"
  -metadesc: "Tether is no stranger to controversy, but as it turns out, the oft-maligned stablecoin may have more than a few aces up its sleeves."
  -robots: null
  -publishedAt: DateTime @1624297349 {#1147
    date: 2021-06-21 17:42:29.0 UTC (+00:00)
  }
  -canonical: null
  -superTag: null
}

"App\Controller\AppController::renderFooter"

"html"

"en"

"481077"

"App\Controller\CookieController::renderCookie"

"html"

"en"

"e3b14e"