Investors Remove $7 Billion From Tether Within 48 Hours

Tether’s investors removed $7 billion from the platform after the supply of Tether’s USDT stablecoin had dropped to $76 billion

Investors Worry About Losing Their Money

According to CNBC, the supply of Tether’s USDT stablecoin has plummeted from $83 billion to just under $76 billion in the last week.

While investors worry about losing their money, the Tether CTO promises that the stablecoin is fully supported, exactly like UST.

Paolo Ardoino tweeted that they have the liquidity to redeem any quantity of Tether.

When USDT fell below $1 for a brief period last week, several investors rushed to withdraw $7 billion from Tether, raising worries about whether the most popular stablecoin is truly 100% supported.

After the failure of the UST algorithmic stablecoin powered by Terra chain, which has been paused for some time, the price fell to $0.95.

$7 Billion Removed From USDT

Tether is backed not only with USD in banks but also with short-term commercial paper, as revealed by a settlement with the New York attorney general.

Concerns that USDT may not be completely backed have resurfaced now that UST has lost its peg and $7 billion has been redeemed from Tether.

Tether previously revealed that the stablecoin is backed by only $4.2 billion in cash, with the remainder consisting of unnamed Treasury bills ($34.5 billion) and commercial paper ($24.2 billion).

Tether promised CNBC in 2021 that it will produce a full audit of USDT reserves within a few months after multiple requests, but it has not yet been completed.

My latest on #Tether: More than $7 billion in USDT has been redeemed in the past week, resulting in fresh calls for the world's biggest stablecoin to produce an audit. https://t.co/hiyabKvQoO

— Ryan Browne (@Ryan_Browne_) May 17, 2022

Tether Is Fully Backed: Paolo Ardoino

Chief technology officer of Tether and Bitfinex exchange, Paolo Ardoino, has responded to a tweet from the CEO of CryptoQuant, Ki Young Ju.

@paoloardoino

With all due respect sir, when $USDT audit report?

We're scared due to the $UST collapse and the market wants spot #Bitcoin ETFs.

Regulators, institutions, and crypto investors are waiting for your response on whether $75B worth of USDT is fully-backed or not.

— Ki Young Ju (@ki_young_ju) May 17, 2022

The CEO of the on-chain data platform wondered when Tether’s reserves will be audited and made public so that the crypto community could see if the $75 billion in USDT has full support.

In response, Ardoino remarked that few financial institutions could do what Tether did, which was to redeem $7 billion within 48 hours.

He added that if investors want to withdraw more USDT, the company may continue to redeem them because Tether has enough liquidity to pay out investments and that USDT is completely backed.