Tether Profits $700M Despite Crypto Market Turmoil
• Tether reported a $700 million profit for the fourth quarter of 2022 despite a difficult year for crypto.
• The company reinvested the profits back into its reserves, ending with excess reserves of at least $960 million.
• Tether CTO Paolo Ardoino said that the company has set itself apart from bad actors by remaining resilient during stress.
Tether Earns $700M Profit in Q4 2020
Tether, one of the world’s leading stablecoin issuers, reported a $700 million profit in the fourth quarter of 2020 despite challenging times in the crypto market. The company reinvested all profits back into its reserves and ended with assets exceeding liabilities by at least $960 million.
Stability Amidst Crypto Winter
The crypto market suffered significant losses throughout 2020 but Tether has managed to remain resilient and stable during this period of market turmoil. According to Tether CTO Paolo Ardoino, “We are proud of how Tether has continued to be a driving force in rebuilding trust within the crypto industry and we are determined to continue to set a positive example for our peers and competitors alike.“ USDT is currently the largest stablecoin with a market cap over $68 billion according to CoinGecko data.
Despite its impressive results, some still argue that Tether’s attestations cannot be trusted fully as it has yet to produce an audit for its financials. This lack of transparency may impact investor confidence going forward and should be addressed by the company soon.
Continued Growth Despite Difficult Times
Despite being faced with an extremely difficult year in crypto, Tether was able to generate large profits while also successfully executing over $21 billion dollars in redemptions. This shows that there is ongoing growth and adoption of USDT as more users recognize it as one of the most reliable safe havens when markets become volatile.
Rebuilding Trust In Crypto
Tether’s success is not only beneficial for itself but also helps rebuild trust within the entire cryptocurrency industry as investors have faith that their investments are secured even during bear markets or other unexpected events.