In-depth Analysis: Why Does USDT Keep Being Rumored to Collapse Yet Remain Stable?

Tether's Financial Status: Strength Says It All

According to Tether's financial report, its net profit for the first quarter of 2024 reached an astonishing $4.5 billion, which is an impressive figure that fully reflects its strong profitability. Meanwhile, Tether claims that its reserve assets exceed the total amount of circulating USDT and has taken the following measures to enhance transparency:

1. 100% Reserve Backing: The issuance of USDT is fully backed by cash, government bonds, and other highly liquid assets, and is subject to regular audits.

2. Diversified Investments: Tether's reserves are also invested in various assets such as gold and Bitcoin, further enhancing its risk resistance.

3. Excess Reserves: Currently, Tether has billions of dollars in "excess reserves" to provide additional security for USDT.

Why Are There Always Rumors of “USDT Collapse”?

1. Market Competition and Malicious Rumors:

The stablecoin market is highly competitive, with USDT holding a market share of over 60%, inevitably attracting attacks and smear campaigns from competitors.

2. Historical Legacy Issues:

In its early days, Tether faced market skepticism due to insufficient transparency and its association with Bitfinex. However, in recent years, through regular audits and optimizing its reserve structure, these risks have gradually been mitigated.

3. Uncertainty in the Crypto Market:

The crypto market is highly volatile, and any speculation about systemic risks amplifies doubts about USDT.

What Is the Probability of USDT Collapsing?

Based on current data, the likelihood of USDT collapsing is extremely low. Here are the core reasons:

1. Market Capitalization Support: With a market capitalization exceeding $80 billion, USDT serves as a cornerstone of market liquidity, and its collapse would have a tremendous impact on the entire crypto market; regulators and industry insiders would not allow such a scenario to happen lightly.

2. Actual Usage Demand: USDT is a major circulating tool for exchanges, DeFi, and cross-border payments, with substantial and stable demand.

3. Excess Reserves and High Returns: Tether's high profits and excess reserves provide a solid risk buffer for USDT.

Conclusion: Don’t Be Misled, View USDT Rationally

Despite the ongoing skepticism surrounding USDT, its risk of collapse is extremely low from the perspective of its financial status and market position. We need to be wary of rumors while focusing more on the actual dynamics of the market.