TLDR:
- Tether has been increasing its supply significantly, adding $500 million/day recently.
- The demand for stablecoins has been decreasing, yet Tether’s supply continues growing.
- Major stablecoins with proof-of-reserves like USDC and DAI have shrunk in supply.
- Despite Tether’s risks, the market prefers it, raising questions about stability.
- Tether’s price remains at $1, even as supply rises and demand falls.
- A Tether de-peg could trigger massive crypto market collapse, similar to TerraUSD.
— Bitfinex'ed 🔥🐧 Κασσάνδρα 🏺 (@Bitfinexed) December 17, 2024
Tether’s unsustainable supply increase in the face of dwindling demand raises serious concerns. As Tether’s market dominance grows, its risks remain largely unaddressed. The consistent price of $1 is a ticking time bomb that, if it de-pegs, could trigger a crypto market collapse far worse than the TerraUSD disaster. Why is the market ignoring the signs of impending instability? Tether is far too big to fail—yet its failure is exactly what the market cannot afford.
I mean Tethers are unredeemable and MicroStrategy can always borrow more for more leverage, so this party can just continue forever, right?🤡 pic.twitter.com/nmD37gnLjG
— David Shattuck (@davidshattuck8) November 20, 2024
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