jakiro
Author: Climber, Bitchain Vision Realm
Recently, Tether, the leading project of the stabilized currency market, has ushered in its tenth anniversary. While counting its own development history, great achievements, and looking forward to the future, the project party announced that it will launch a USDT and its anti -fight inflation.The influence of the documentary to show commemorative.
After ten years of development, the highest market value of Tether is close to $ 1,200, far ahead of Circle nearly $ 85 billion, and Tether CEO will say that USDT will gradually become digital dollars.However, under the bright and dazzling results, this “unicorn” company still has many challenges and hidden dangers, including the pressure from supervision, justice, and competitors, especially the outsiders of the outside world’s opaque information issued.It will become the next FTX question.
One or ten years of development results
On October 7, Tether issued a article to celebrate the tenth anniversary of the establishment of the company. It stated that since its establishment in 2014, it first proposed the concept of digital currency USDT linked to the US dollar, providing unprecedented solutions for the fluctuation of the cryptocurrency market.Today, USDT is the most widely used stablecoin, with a market value of nearly $ 120 billion, which has completely changed the traditional financial industry and has developed into a diversified technology giant.
In the first half of this year, the company’s net profit reached a record high of 5.2 billion US dollars. In the second quarter of this year, Tether’s profit reached 1.3 billion US dollars, a record high.
In the third quarter, Cryptoquant data showed that the liquidity of stable currency increased to a record of $ 169 billion at the end of September, an increase of 31%since the beginning of the year.Tether’s USDT accounts for 71%of the market share, while the second Circle of USDC accounts for 21%.
Tether’s revenue in 2023 exceeded $ 6.2 billion, surpassing $ 5.5 billion in revenue of Berlaide, a major global investment company in the same year.Blackrock has 20,000 employees, while Tether has 100 employees.
For the long -term development process of ten years, TTHER officially made the corresponding data summary.
Global influence: There are more than 350 million users worldwide, promoting financial inclusiveness of emerging markets.
Cooperate with law enforcement departments: Assist more than 180 law enforcement agencies to recover more than 1.8 billion US dollars related to illegal activities.
Liquidity: During the US crisis in 2022, a $ 10 billion redemption was processed within a week, proving the liquidity and reliability of Tether.
Expansion beyond stablecoin: launch Tether Data, Tether Finance, Tether Power, Tether Edu, and Tether Evo to expand its influence.
Talking about the vision of the next 10 years, Tether said that although the company has made significant progress, it still has problems in terms of regulatory transparency, scalability and digital currency.In addition, Tether imagine a world of digital currency payment seamless, accessible and tolerant of everyone.Tether’s next decade will focus on enhancing global financial inclusiveness, expanding its token issuance, and promoting innovation in the fields of artificial intelligence, energy sustainability and blockchain education.
In order to commemorate Tether’s first ten years and its next ten years, Tether announced that it will release a documentary “Stability and Freedom in Chaos”, focusing on the influence of Tether in Brazil, Argentina, and Turkey.
Tether’s success can be attributed to the following points:
1. Pocket relationship with the US government
Tether CEO once said that “Tether is the best friend of the US government”, and he said that the company holds more US Treasury bonds than Germany and any other competitors.
As of the second quarter of 2024, Tether directly held more than $ 97 billion in US Treasury bonds.This has made Tether one of the 20 major buyers of U.S. Treasury bonds, surpassing the holdings of Germany, the United Arab Emirates and Australia and other countries.
2. Assist the judicial department to crack down on crimes
In September this year, Tether assisted the US Department of Justice to freeze over 6 million US dollars assets in Southeast Asian fraud projects, and the US Prosecutor’s Office of Washington Special Administrative Region publicly acknowledged that Tether provided help.In August, Tether and FBI jointly recovered a $ 5 billion cryptocurrency. The Office of the Prosecutor’s Office of the East District of the North Carolina for public commend Tether, thanks to help recover funds related to major fraud programs.
Tether said that so far, more than 180 law enforcement agencies in 45 judicial jurisdictions have frozen USDTs with a value of over 1.8 billion US dollars, re -assigned USDTs over $ 128 million to legal owners and law enforcement agencies and voluntarily frozen more than 18500Wallets related to illegal activities.
3. Globalization layout
In September this year, Tether cooperated with REKU to launch the Popularization of Cryptocurrency Knowledge in Indonesia.In addition, Tether cooperated with the University of Thailand to introduce stable currency, blockchain and P2P technology to MUIC courses.
In August, Tether planned to launch a stablecoin linked to the UAE Dram AED.In addition, Tether announced that it cooperated with cryptocurrency Xion Global to promote South African blockchain education and established a strategic cooperative relationship with the African Blockchain Research Institute.
4. Strengthen compliance
Tether CEO Paolo Ardoino said that the size of employees will double to enhance the strength of compliance and other fields in the next year. It is expected that the number of employees will reach about 200 in the middle of 2025.
Second, attack, question, and challenge, Tether’s side crisis rings
Judging from the tenth anniversary of Tether, the company has achieved very brilliant results, and the scale of profitability is also very objective.However, it is troublesome on the road of growth and development, and this year seems to be particularly serious.
Although the Tether has a close relationship with the U.S. government above, there are still opinions that the company may face strict review.Earlier, Ripple CEO Brad GarlingHouse said that the next goal of the US government is Tether, which is responsible for the stable currency company of USDT stable currency circulation.
And some experts believe that the statement of the CEO of Ripple is a very large inside story report. If it really happens, then the USDT stabilizer market will have very large selling pressure. In this case, the value of USDT will have greatly appeared significantlyFall.
1. Doubt about the transparency of business and assets
Tether’s market share exceeds 75%of the entire stable currency market, which has aroused people’s concerns about the influence of Tether’s influence in the encryption industry.Justin Bons, founder of Cyber Capital, is worried that Tether may be a scam worth $ 118 billion and greater than FTX. He said that Tether has no reserve certificate and has never been audited. USDT is being found fake documents (fraud) for fake files, fake documents,Cover the status and lie to the reserve.
In addition, he also said that the background of the Tether team is worrying, and the founding members have involved scandals such as the Ponzi scheme and gambling cheating.And Tether is closely related to Bitfinex, and Bitfinex’s cooperative bank Crypto Capital was seized for money laundering.
As early as 2021, Tether fined USDT to USDT’s USD $ 41 million because of the support of USDT.
In addition, the German bank analyst also said that Tether’s reserve lacks transparency and said the company’s solvency status “is doubtful.
The Consumers’ Research, the American Consumer Protection Organization, also issued a report to warn the stable currency publisher Tether Tether in its US dollar reserve transparency.
2. Supervision pressure
JP Morgan analysts previously stated in a report that Tether’s dominance was too strong. The increasingly strict stable currency supervision may constitute a major challenge to the market leading position of Tether, facing the risk of constantly changing regulatory environment in Europe and the United States.According to the European Cryptive Asset Market Law (MICA), 60%of the stablecoin reserves must be stored in European banks, which may force Tether to adjust its reserve management strategy.
The Wall Street Journal stated that Tether is disrupting the US global sanctions system, and according to a report from the United Nations in January this year, USDT is the “first choice” of Southeast Asia’s money laundering.
The U.S. Stable Currency Regulations Proposal revealed that Circle or leads to Tether, which is easier to abide by new stable currency regulations.
The United Nations warned that Tether is increasingly favored by money launders and has become the core of the fraud industry.
3. Judicial lawsuit
In September this year, Swan Bitcoin accused the former employees and Tether conspiring the mining business.The lawsuit stated that the former employees stole the “highly proprietary code” from SWAN’s Bitcoin mining monitoring software and dug the company’s suppliers and business partners.
In addition, SWAN accused Tether’s assistance to implement the plan, saying that Tether provided “legal cover” for hostility by issuing a “breach notice”.Four days after the resignation of the former employee, Tether informed Swan that Proton took over daily Bitcoin mining management.
In a collective lawsuit on Tether and Bitfinex, some plaintiffs accused these encrypted companies that promoted the use of credit and loan funds for transactions through the illusion of manufacturing demand, and finally pushed the price of cryptocurrencies.The lawsuit contains the chat and testimony of the company’s operators, claiming that they acknowledged the operation.
Celsius Network Limited also filed a lawsuit against Tether Limited and some of its affiliated companies in the Court of Ranning Consortium in Blockchain Rechain Recovery Investment Consortium, asking Tether to return a Bitcoin worth about $ 2.4 billion.
Earlier, Caroline Hill, a senior director of Circle’s global policy and supervision strategy, published a comment at the House Financial Services Committee on the theme of encrypted crimes, urging the authorities to review Tether’s participation in terrorist financing.
Tether Lianchuang Brock Pierce also fell into a legal dispute at the hotel project in Puerto Rico in August this year.
4. The stable currency pattern is fiercely competitive
This year, the competition in the stable currency market is extremely fierce, and the latecomers are endless.According to DEFILLAMA data, there are 14 stable currency projects with a market value of over 300 million US dollars, and there are also 6 projects that break $ 1 billion.
Since January 1, 2024, the market value of USDT has increased by $ 25.96 billion, from US $ 91.74 billion to $ 172.5 billion.The representative stablecoin is FIRST DIGITAL’s FDUSD, and its supply has increased by $ 280 million within a day.
In addition to the above pressure, Tether is also facing the decline in profits caused by the Fed’s start -up interest rate cut cycle.Stablecoin Research Company BlueChip said that the Federal Reserve cuts 50 basis points for each interest rate, Tether’s annual revenue has decreased by 488 million US dollars, and Circle’s annual revenue has decreased by $ 144 million.With the Federal Reserve’s interest rate cuts, the revenue obtained by stable currency issuers from US Treasury bonds may be forced to make more risky investment to make up for income loss.
Summarize
There is no doubt that the current TETHER’s leading position in the stable currency market is even more difficult to be shaken.After ten years of development, the company’s market value has ranked among the world’s famous enterprises, and the number of users and profitability is also a first -class level.However, the phrase of the trees is also used in Tether. The outside world has been guessing and questioning it, and it does not have sufficient evidence.As the future supervision is becoming stricter, it is necessary to check whether the big tree Tether is really ingrained when reviewing the strong wind.
