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The collapse of Terra and the UST stablecoin, which occurred a week ago, caused a real panic in the market. Some assets, such as USDN, DEI and USDT, came under pressure, which was caused by distrust on the part of the crypto community.
Paradoxically, USDT (Tether), being one of the most popular stablecoins, should have easily coped with global shocks. But users are still acting cautiously amid Tether’s skirmish with the U.S. Securities and Exchange Commission and, as many believe, blatantly inflated reserves.
The situation is complicated by the significant share of commercial securities in stock issued by Tether Holdings at the end of the previous year. The problem of such assets is their low liquidity, therefore, in a crisis period it is not so easy to find a buyer to sell. Many experts have repeatedly focused on the fact that this circumstance can play a cruel joke with the company.
On Thursday, May 19, the project published its reporting on reserves. It follows that the share of commercial securities decreased by 17% compared to the previous period. As for total consolidated assets, they are now at $82.4 billion.
There is also evidence that Tether increased the scale of investments in US government bonds by 13% (from $ 34.5 billion to $ 39.2 billion). The company’s technical director Paolo Ardoino made comments, noting that the previous week clearly showed that USDT is a stable asset. It is constantly financed, and the composition of its reserve fund is conservative and liquid.
Earlier, the editors of the Crypto.ru informed that the market capitalization of USDT exceeded $ 80 billion, while an additional $ 1 billion tokens were issued to expand the available supply. Experts agree that in the foreseeable future, Tether will act as a locomotive for the growth of the stablecoin segment.
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