Tether (USDT), the largest stablecoin in the world with a market cap exceeding $157 billion, is in the spotlight again, but this time for negative reasons.
Billion-Mint on Tron: What Does It Mean?
Recent analysis has shown that Tether minted $2 billion worth of USDT on the Tron network, labeled as 'authorized but not issued.' This means the tokens were created but have not yet been released into circulation, remaining in Tether's vault. The analyst suggests this might be a preemptive move to handle potential market volatility.
No Full Audit: Tether's Reserve Mystery
Tether claims that every USDT is backed by real assets like cash and short-term investments. However, a full independent audit has never been produced. For instance, in 2021, the New York Attorney General found that Tether misrepresented its reserves and fined the company $18.5 million. Without an independent audit, many in the crypto community fear a hidden reserve gap could lead to a collapse.
MiCA Regulations and Their Impact on Tether
Europe is tightening its grip. According to the MiCA regulation, stablecoins like Tether must obtain licenses, hold 60% of reserves in EU banks, and maintain full transparency. Due to non-compliance, major exchanges including Binance and Kraken have delisted USDT for European users, limiting Tether's access to a large market and raising concerns about its global sustainability.
While Tether is not collapsing today, the risks are real. The crypto community should remain alert and diversified, especially during volatile times when trust in stablecoins is paramount.
