Today is Sunday and weekends are usually quiet. However, Hayes is on the agenda of the global cryptocurrency communities. We talked about Hayes, who started today with an explosive FUD. We will discuss the reactions of 5 different important names to FUD, which is being tried to be expanded. Ki Young Ju was the one who gave him the harshest answer.
The Claim That Cryptocurrencies Will Crash
cryptocurrency In today’s conditions, 2 big companies are trying to panic their investors. FUD You put it on the market. The first of these is the Tether discussions that have been around for years. What haven’t they said so far? Although Tether shook after the FTX crash, it did not collapse because its reserves were strong enough to handle a bankrun. The other one is the discussions about whether Strategy BTC is selling or will sell.
Hayes said today that Tether reserves are not safe and in cryptocurrencies He wrote that it could cause collapse. CryptoQuant CEO Ki Young Ju replied to him;
“Translation: I am currently out of position and want crypto prices to fall so I can buy lower.”
Alexandre Dreyfus (CHZ CEO) shared a sarcastic response saying “so the bull is coming again”.
“I see a lot of FUD on Tether. I think we’ll be back in the bull market soon. Also, it’s either competitors or TradFi complaining, not customers. Customers are happy.”
Will Tether Fail?
First of all, not even Hayes is saying that reserves are completely unsafe. Even with the idea he’s pumping out, the company could meet the $130 billion redemption demand immediately. 130 billion dollar bankrun to date in cryptocurrencies something we don’t see. Moreover, JosephA140, who prepares research reports for Citi, says the following;
“To Citi Tether I spent hundreds of hours researching and writing about it. Hayes skips some points.
When Tether generates $, it has a separate equity balance sheet that they do not publicly disclose. The numbers they announce are based on the philosophy of “matching”; they just show how their reserves are supported.
Equity balance sheet, equity investments, mining operations, corporate reserves and possibly more from BTC and the remainder is distributed to shareholders as dividends.
Tether owns approximately $120 billion in interest-bearing treasury bonds, yielding approximately 4% since 2023. This translates into approximately $10 billion of liquid PnL at very low cost (150 employees), making it one of the most efficient cash-generating businesses in the world.
I estimate this will increase the company’s equity capital to a value in the range of $50-100 billion. Although they have stated that they are aiming to raise $20 billion for 3%, this would put them at a valuation of over ~$500 billion. It probably won’t happen and will probably be overvalued, but it would still be a fairly valuable equity.
Tether is different but similar to a bank in this respect and is significantly better collateralized. The main difference is that banks are backed by the lender of last resort (the Central Bank) while Tether is not.
CONCLUSION: Tether It is not bankrupt, on the contrary; They have a money printing machine.”
Ted Pillows, on the other hand, looks at it from a very different perspective. What he said is just saying “We’ve been hearing the same things for 10 years and USDT is still 1 dollar.” Saying that it works with a partial reserve logic like banks, Ted says that this does not mean that Tether is unsafe.
Probably in the coming hours or on December 1 (if tomorrow arrives), Tether will address this issue in addition to the new BDO report. So, FUD seems to be in vain and if fear spreads in the coming hours, it may be useful to be aware of what is happening in advance.
