Key Notes

Arthur Hayes warned that Tether’s exposure to Bitcoin and gold increases the risk of a liquidity crunch.

Analysts show Tether has over $181B in assets but only $140B in instantly liquid reserves.

Former Citi Research lead Joseph argues Tether is far stronger than critics believe.

BitMEX co-founder Arthur Hayes said that the world’s largest stablecoin issuer, Tether, is preparing for a Federal Reserve rate‑cut cycle . He is concerned that as Tether increases its exposure to Bitcoin and gold, it also increases the chance that a sharp pullback in those assets could weaken its equity cushion.

While Hayes called this a massive risk, the broader crypto market argues that Tether is far more financially strong than it is perceived to be.

The Tether folks are in the early innings

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