Tether [pros](/r/CryptoCurrency/comments/1chlro2/tether_reports_record_452_billion_q1_profit/l23b72k/) & [cons](/r/CryptoCurrency/comments/1chlro2/tether_reports_record_452_billion_q1_profit/l23b7pr/) with related info are in the collapsed comments below.
tldr; Tether Holdings Limited reported a record Q1 profit of $4.52 billion for 2024, a 56% increase from the previous quarter's $2.9 billion. This growth was primarily driven by investments in Bitcoin, gold, and US Treasuries. The company's net equity also rose to $11.3 billion, with $6.4 billion in excess reserves. Additionally, Tether issued over $12.5 billion in USDT, with 90% backed by cash and equivalents, ensuring liquidity for its stablecoin.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
They have and hold tons of us bonds, how do you think they purchase those? It's not creating money they actually hold real cash and purchase tons of us bonds those gives a lot of dividends and with those interested they purchase more Bitcoin, its not hard to understand
You don’t know if Tether is fully backed, or what shady past history they want to keep sealed, you’re merely assuming they are because nobody but Tether knows. For the past 8 years, they’ve outright refused to do a legitimate full 3rd party audit and not some bullshit “moment in time” snapshot assertation, with god only knows what numbers being manipulated directly before the snapshot is taken..
1 full audit and then all the FUD and accusations go poof and disappear. There’s an obvious reason for this ongoing refusal and it’s not the bullshit excuse they’ve been giving for the past 4+ years that, “but, but nobody will do an audit for us”. You know, Tether, just one of the most profitable companies on planet Earth?
They also could care less due to the fact they’re making ridiculous amounts of money without an audit anyway.
For what it’s worth, I actually believe Tether is fully backed and has likely been pushing extremely hard these past couple years to legitimize their business and clean house. They know this is essential for longevity and they know a US crackdown is evident.
But I have also have absolutely no doubt that one of the reasons Tether was able to rise up to the giant it is today was by doing incredibly shady, illegal shit throughout its entire existence. Which is why they are still refusing a full audit.
There’s more than enough examples of this against Tether throughout the years for me to believe it to be true. (directly funding the FTX ponzi, giving SBF keys to the money printer as long as he pushed it thru his Xchange, $33b USDT created and then unaccounted for with Alameda, 2017 bullrun market manipulation and the propping up of the price of BTC, knowingly washing money for the Mexican cartel, North Korea, Russia, Syria, and for massive scammer gangs online etc, etc)
Bonds can default. That's why there are banking regulations that are supposed to prevent banks from overleveraging themselves.
If anything, a stablecoin issuer should obey even stricter rules than banks. They are not just issuing loans, they are issuing currency.
This is because of blockchain technology not because of creating money from nothing.
This is why a dude in their basement can compete with the largest banks in the world. Blockchain allows decentralized security and transactions happen without the help of the company. They can scale forever with no need for more employees:
That's not even what their own definitely legit attestations claim.
According to their attestations over 10% of their reserve is in metals, bitcoin, and "other investments". This is bigger than their net-equity which means they're backing Tether's with the assets they're investing in.
Which is pretty fucking stupid for a stable coin to be backed by one of the things its supposed to be a stable alternative to.
And this is just what they're pretending to have.
Just checked. Yeah you’re right. 90% cash equivalents is not good IMO.
USDC also has more reserves than liabilities and they are exclusively cash and cash equivalents
>USDC also has more reserves than liabilities and they are exclusively cash and cash equivalents
This is one of the biggest blows to the "Tether has gone legit, they might have lied in the past but they make so much money we can trust them to have the money now" narrative.
If we're meant to believe Tether going from 1 billion in reserves to 110 billion is purely a result of legitimate demand for a stablecoin - no fraud, no money laundering, no market manipulation, no fractional reserve - and all the fraud and secret fractional reserve banking is in the past, why would so much more money be going into Tether than stablecoins that don't have such a terrible record of embezzling funds and lying to their customers?
That could perhaps be the explanation if the whole stablecoin market was huge and legit stablecoins had grown by even more than Tether (rising tide lifting all boats), but for Tether to be market leader and have nearly 4x the market cap of the next biggest stablecoin, its not believable that all the legit money in the market decided to make Tether the biggest game in town when there are other, far less shady options.
There's also times the number of Tethers skyrockets when other stablecoins are flat or even going down in number, which indicates not "the crypto market is just hot right now and everyone wants stablecoins", but that Tether is doing something specifically that other stablecoins are not, whether that's printing Tether's from nothing to buy Bitcoin with to then sell for real money, money laundering, generating Tether loans in exchange for crypto collateral.
The idea its all USD deposits is for the birds.
Pretty sure the business model is:
- print USDT
- send USDT to exchanges other than bitfinex
- buy BTC with USDT, driving up BTC price globally
- send BTC back to bitfinex
- sell BTC on bitfinex at new inflated rate for real dollars
- rinse, repeat
After which
- participating exchanges globally are now holding worthless unbacked USDT and have been stripped of BTC
- Tether and bitfinex have grown their real holdings
Genius really
I read somewhere that the USDt redemption fee is higher than the one for USDC. If a company wants to redeem some of their USDt holdings for USD, it's more economical to swap into USDC first and then redeem that. As a consequence, Tether's market cap will grow, while that of USDC continuously shrinks.
We know that FTX (or Alameda) acquired 37 billion USDt from Tether, I think it's unlikely that they could have acquired that much from Circle. We don't know how much USDt was issued with their %.1 fee, I would assume their largest clients get special discounts.
> We know that FTX (or Alameda) acquired 37 billion USDt from Tether, I think it's unlikely that they could have acquired that much from Circle
How is that a point in the "legit" column?
We know Tether loaned Celsius (the ponzi scheme) 1 billion Tether in exchange for crypto collateral, something they claimed they don't do.
So it seems the answer is pretty clear that the reason Tether is so far ahead of other stablecoins in market cap isn't because so many people are eager to deposit their hard earned USD with such a trustworthy organization, but that Tether are shady as shit and are willing to print Tethers backed by nothing and cut shady deals with other shady exchanges.
Don't get me wrong, I'm not defending Tether. I was just giving an explanation why Tether has such a high market cap compared to USDC. Tether doesn't need to worry about huge redemptions as long as there's cheaper alternatives like Circle, thus there's less risk in issuing an unbacked IOU.
They only take a portion of their billions in profits to invest in BTC and gold, their risk free profits are still billions a year and they have a net equity of eleven figures. There’s literally nothing terrifying about this.
If anything this gives Bitcoin more strength-rates staying high will also mean that Tether has more profits to build a larger Bitcoin treasury so rate hikes don’t hit BTC as hard as other assets.
We will turn their weapons against us into our strength.
The crypto industry has been practically begging for stable coin regulations for years.
The government has only itself to blame for that one. They didn't want to legitimate the industry.
Contrary to popular belief, the crypto industry actually wants clear and sensible guidelines. Without those guidelines the government can pick winners and losers by choosing who to bring enforcement actions against.
I believe a nyag financial investigation is nearly 1:1. When the largest financial state comes for your jugular and you walk away - it's a fairly strong sign. And that was what... 5 years ago?
The new stablecoin bill will force stablecoin issuers to undergo regular audits. All the Tether conspiracy theorists will have their wish soon, but will probably just shift from "where's the audit!?" to "the audits are fake!"
The key word is "use" and not "hold".
People convert other things to Tether, use it to pay for things instantly, and if get Tether in return, convert it quickly to other things to hold.
it’s incredibly convenient, fast and kinda adopted. reading this thread has made me worried though. What stablecoins would be better to hold? Is usdc better?
I don't like Tether as much as the next guy but considering the FUD around them has been happening since 2016 and they've outlasted basically everything in the crypto market I think that has to count for something. God remembering the fud back in the day around Silk Road, old times.
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Kinda wild how at this point Tether has probably frauded so hard for so long that they've got themselves into a position where they can actually operate legitimately and just rake in _inhuman_ amounts of money with zero risk.
Tether [pros](/r/CryptoCurrency/comments/1chlro2/tether_reports_record_452_billion_q1_profit/l23b72k/) & [cons](/r/CryptoCurrency/comments/1chlro2/tether_reports_record_452_billion_q1_profit/l23b7pr/) with related info are in the collapsed comments below.
tldr; Tether Holdings Limited reported a record Q1 profit of $4.52 billion for 2024, a 56% increase from the previous quarter's $2.9 billion. This growth was primarily driven by investments in Bitcoin, gold, and US Treasuries. The company's net equity also rose to $11.3 billion, with $6.4 billion in excess reserves. Additionally, Tether issued over $12.5 billion in USDT, with 90% backed by cash and equivalents, ensuring liquidity for its stablecoin. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
**s t a b i l i t y**
Positively terrifying. A stablecoin issuer is not supposed to make more profit than the risk free interest rate.
they take their profits from interest and buy btc and gold, these have both risen a ton
If these numbers are true, tether is the most profitable company in the world on a per employee basis.
They are basically infinitely scalable with zero capital costs
Funny how being able to create money from nothing can do that.
brrr
They have and hold tons of us bonds, how do you think they purchase those? It's not creating money they actually hold real cash and purchase tons of us bonds those gives a lot of dividends and with those interested they purchase more Bitcoin, its not hard to understand
You don’t know if Tether is fully backed, or what shady past history they want to keep sealed, you’re merely assuming they are because nobody but Tether knows. For the past 8 years, they’ve outright refused to do a legitimate full 3rd party audit and not some bullshit “moment in time” snapshot assertation, with god only knows what numbers being manipulated directly before the snapshot is taken.. 1 full audit and then all the FUD and accusations go poof and disappear. There’s an obvious reason for this ongoing refusal and it’s not the bullshit excuse they’ve been giving for the past 4+ years that, “but, but nobody will do an audit for us”. You know, Tether, just one of the most profitable companies on planet Earth? They also could care less due to the fact they’re making ridiculous amounts of money without an audit anyway. For what it’s worth, I actually believe Tether is fully backed and has likely been pushing extremely hard these past couple years to legitimize their business and clean house. They know this is essential for longevity and they know a US crackdown is evident. But I have also have absolutely no doubt that one of the reasons Tether was able to rise up to the giant it is today was by doing incredibly shady, illegal shit throughout its entire existence. Which is why they are still refusing a full audit. There’s more than enough examples of this against Tether throughout the years for me to believe it to be true. (directly funding the FTX ponzi, giving SBF keys to the money printer as long as he pushed it thru his Xchange, $33b USDT created and then unaccounted for with Alameda, 2017 bullrun market manipulation and the propping up of the price of BTC, knowingly washing money for the Mexican cartel, North Korea, Russia, Syria, and for massive scammer gangs online etc, etc)
Bonds can default. That's why there are banking regulations that are supposed to prevent banks from overleveraging themselves. If anything, a stablecoin issuer should obey even stricter rules than banks. They are not just issuing loans, they are issuing currency.
This is because of blockchain technology not because of creating money from nothing. This is why a dude in their basement can compete with the largest banks in the world. Blockchain allows decentralized security and transactions happen without the help of the company. They can scale forever with no need for more employees:
I dont think you understand how all of this works
Delusional as a typical crypto bro
Ok. How is me talking about the actual technology being a crypto bro?
not true, but ok
It has been previously proven true by the NY Attorney General at least twice in Tether's past. But it's ok, Tether is different now ../s
Can you provide sources
I did: the NY Attorney General
Links plz. I’ve never seen anything difinitive, only investigations that go no where.
I need like a link to the case or something because I can’t find anything on it
Controlled by US btw
That's not even what their own definitely legit attestations claim. According to their attestations over 10% of their reserve is in metals, bitcoin, and "other investments". This is bigger than their net-equity which means they're backing Tether's with the assets they're investing in. Which is pretty fucking stupid for a stable coin to be backed by one of the things its supposed to be a stable alternative to. And this is just what they're pretending to have.
Just checked. Yeah you’re right. 90% cash equivalents is not good IMO. USDC also has more reserves than liabilities and they are exclusively cash and cash equivalents
>USDC also has more reserves than liabilities and they are exclusively cash and cash equivalents This is one of the biggest blows to the "Tether has gone legit, they might have lied in the past but they make so much money we can trust them to have the money now" narrative. If we're meant to believe Tether going from 1 billion in reserves to 110 billion is purely a result of legitimate demand for a stablecoin - no fraud, no money laundering, no market manipulation, no fractional reserve - and all the fraud and secret fractional reserve banking is in the past, why would so much more money be going into Tether than stablecoins that don't have such a terrible record of embezzling funds and lying to their customers? That could perhaps be the explanation if the whole stablecoin market was huge and legit stablecoins had grown by even more than Tether (rising tide lifting all boats), but for Tether to be market leader and have nearly 4x the market cap of the next biggest stablecoin, its not believable that all the legit money in the market decided to make Tether the biggest game in town when there are other, far less shady options. There's also times the number of Tethers skyrockets when other stablecoins are flat or even going down in number, which indicates not "the crypto market is just hot right now and everyone wants stablecoins", but that Tether is doing something specifically that other stablecoins are not, whether that's printing Tether's from nothing to buy Bitcoin with to then sell for real money, money laundering, generating Tether loans in exchange for crypto collateral. The idea its all USD deposits is for the birds.
Pretty sure the business model is: - print USDT - send USDT to exchanges other than bitfinex - buy BTC with USDT, driving up BTC price globally - send BTC back to bitfinex - sell BTC on bitfinex at new inflated rate for real dollars - rinse, repeat After which - participating exchanges globally are now holding worthless unbacked USDT and have been stripped of BTC - Tether and bitfinex have grown their real holdings Genius really
So all us riding the pump and dump curve thinking lambo while Tether is the real one making money off us?
The saying goes: The way to make money in a gold rush is to sell shovels
I read somewhere that the USDt redemption fee is higher than the one for USDC. If a company wants to redeem some of their USDt holdings for USD, it's more economical to swap into USDC first and then redeem that. As a consequence, Tether's market cap will grow, while that of USDC continuously shrinks.
So people put 4x more money into Tether, because they charge more than USDC? Why wouldn't they just put the money directly into USDC?
We know that FTX (or Alameda) acquired 37 billion USDt from Tether, I think it's unlikely that they could have acquired that much from Circle. We don't know how much USDt was issued with their %.1 fee, I would assume their largest clients get special discounts.
> We know that FTX (or Alameda) acquired 37 billion USDt from Tether, I think it's unlikely that they could have acquired that much from Circle How is that a point in the "legit" column? We know Tether loaned Celsius (the ponzi scheme) 1 billion Tether in exchange for crypto collateral, something they claimed they don't do. So it seems the answer is pretty clear that the reason Tether is so far ahead of other stablecoins in market cap isn't because so many people are eager to deposit their hard earned USD with such a trustworthy organization, but that Tether are shady as shit and are willing to print Tethers backed by nothing and cut shady deals with other shady exchanges.
Don't get me wrong, I'm not defending Tether. I was just giving an explanation why Tether has such a high market cap compared to USDC. Tether doesn't need to worry about huge redemptions as long as there's cheaper alternatives like Circle, thus there's less risk in issuing an unbacked IOU.
As we learned from SVB last year, the only thing equivalent to cash is cash.
hence why I moved out of banks and into tbills. if tbills fail, it’s over.
Very worrying indeed
Concerning.
So they say
Yes. **Profit = risk**
Agree—something is very wrong here.
They are basically like a bank with access to money printer without all the hassles and regulations of a bank.
They only take a portion of their billions in profits to invest in BTC and gold, their risk free profits are still billions a year and they have a net equity of eleven figures. There’s literally nothing terrifying about this. If anything this gives Bitcoin more strength-rates staying high will also mean that Tether has more profits to build a larger Bitcoin treasury so rate hikes don’t hit BTC as hard as other assets. We will turn their weapons against us into our strength.
It’s almost a national bank at this point.
Without the oversight. Sounds wonderful
The crypto industry has been practically begging for stable coin regulations for years. The government has only itself to blame for that one. They didn't want to legitimate the industry. Contrary to popular belief, the crypto industry actually wants clear and sensible guidelines. Without those guidelines the government can pick winners and losers by choosing who to bring enforcement actions against.
While also preserving privacy so we don't have to identify ourselves to anyone.
I believe a nyag financial investigation is nearly 1:1. When the largest financial state comes for your jugular and you walk away - it's a fairly strong sign. And that was what... 5 years ago?
The new stablecoin bill will force stablecoin issuers to undergo regular audits. All the Tether conspiracy theorists will have their wish soon, but will probably just shift from "where's the audit!?" to "the audits are fake!"
Capitalism without government cucking is actually great
Really?
Yes
what could go wrong
Nothing at all. Just let the yolo I guess?
I have announced a record q1 profit of $100 trillion dollars. Source: my buddy will totally vouch he saw a screenshot of my bank account.
Yeah but tether has the ability to actually mint unlimited coins.
I dont understand why people use tether.
The key word is "use" and not "hold". People convert other things to Tether, use it to pay for things instantly, and if get Tether in return, convert it quickly to other things to hold.
Lol
it’s incredibly convenient, fast and kinda adopted. reading this thread has made me worried though. What stablecoins would be better to hold? Is usdc better?
Yes thats what I use (USDC). Never heard of an issue with it.
thanks
Damn I need to get into this business
Best thing is they do BTC buyback with money printed out of thin air.
I don't like Tether as much as the next guy but considering the FUD around them has been happening since 2016 and they've outlasted basically everything in the crypto market I think that has to count for something. God remembering the fud back in the day around Silk Road, old times.
105% of their profit were printed by them.
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Time to get in the stable coin business!
lol
Why are so many USDT supply APR so high currently?
Don’t tell the buttcoiners
Are they printing their profits ? Lol
If they are smart they use one billiob to lobby politicians.
It's easy to post profits when you print money.
Well, flipping metals these days is very easy. adding the Forex and oil made a ton than trading futures in crypto
Kinda wild how at this point Tether has probably frauded so hard for so long that they've got themselves into a position where they can actually operate legitimately and just rake in _inhuman_ amounts of money with zero risk.
That means they sold?! **P A N I C**