Is Tether being questioned again? Industry pros are arguing over reserve issues.

The “big brother” of stablecoins, Tether, has recently come under fire. Arthur Hayes, the founder of a certain exchange, directly fired shots, saying that if BTC and gold prices collapse, Tether's assets might not hold up, and their equity buffer could be breached in an instant. However, former Citigroup analyst Joseph Ayoub quickly jumped in to rebut—are you only seeing the tip of the iceberg? Their complete balance sheet is laid out, and with equity plus a large amount of government bonds, their ability to absorb losses is quite strong.

The real dilemma actually lies in the old issue of liquidity. Most of Tether's reserves are not in cash; in the event of a run on the company, can these assets be quickly liquidated? Although the company presented a report showing over $2 billion in redemptions in a single day in 2022 to prove itself, the market still remains skeptical. After all, in extreme situations, the numbers on paper and actual redemption capabilities might be two different things.