Peter Brandt, who has more than 500,000 followers on Twitter, is a well-known professional trader. He often posts valuable insights about the market on Twitter. In a recent tweet, Peter took a stance on Tether, calling it useless brain farts.
Selected vocabulary from iconic trader Peter Brandt
According to Peter, the concept of converting traditional fiat currencies such as the U.S. dollar or euro into digital fiat currency units such as Tether is just to protect its wealth reserves from inflation. It is a meaningless process because it has no meaning. .
Our idea of converting one fiat currency unit (dollar, euro, etc.) into another fiat currency unit (tether) to protect the wealth storage of the first fiat currency unit is nothing more than a huge brain fart.
— Peter Brandt (@PeterLBrandt) August 16, 2021
Although many people agreed with Peter’s tweet, some people also put forward valid objections. One user believes that stable encrypted assets exist to allow people to obtain their local currency numbers in a somewhat untrustworthy way. Trust is at the issuer level without worrying about the risks of every digital platform that people may use.
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Another Twitter user believes that no one really converts traditional fiat currencies into stable currencies to protect their wealth reserves. Tether and other stable currencies are just non-volatile bridge assets between more volatile transactions without having to leave encryption Currency field.
At the same time, Tether, as its leading stablecoin, continues to dominate the crypto market. Just yesterday, the market value of Tether has grown to $64B, marking a new milestone and another sign of the market’s continued trust and confidence in Tether.
On August 9, Tether Holdings Limited, the issuer of the largest stable currency USDT, released New certification report This covers useful insights into the composition of its reserves to increase transparency.
Investors have been patiently waiting for the second report since the company issued its first assurance report in March, which vaguely disclosed its assets and liabilities. In the latest assurance report, Tether not only includes the composition of its reserves, but also gives details of its commercial paper holdings and the rating and maturity of the certificate of deposit.
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As of June 30, 2021, the company holds $30.8B of CP and CD, accounting for approximately 49% of its reserves. Approximately 93% of them are rated A-2 and above, and 1.5% are rated below A-3. Among other reserves, the company holds approximately $6.28B of cash and bank deposits, $1B of reverse repurchase notes, and $15.28B of U.S. Treasury bills.
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