Tether is making massive profits but becoming dangerously risky for crypto
“is something that everyone is talking about $24.07.”
is something that everyone is talking about $24.07. And, like, stablecoins aren't, like, you know, sexy and hot and cool, but, like, they're important.
But then at the same time, they can be volatile. Right? So, like, let's look at Tether. Right? So they've had massive growth and profitability. You've said to me before this before we started recording that they are one of, like, the only well, they're a major business that has made like, they're an enigma, that they've made Yeah. Yeah. Yeah. You know, a lot of money. But they're becoming increasingly risky for the broader financial ecosystem. I just read this recently reported Reuters article, and they talk about that Tether's equity cushion's shrinking. Right? Its asset mix is shifting from, like, super safe US treasury bills towards riskier investments like Bitcoin,
About this clip
The hosts discuss how Tether, despite being hugely profitable and important to the crypto ecosystem, is becoming increasingly risky as it shifts from safe US treasury bills to riskier investments like Bitcoin. They explore the paradox of stablecoins being unsexy but crucial, while highlighting concerns about Tether's shrinking equity cushion.
Why this clip
This clip reveals a concerning paradox about one of crypto's most important players - massive profitability paired with increasing systemic risk.
What they said next
Why crypto adoption fails: The wallet problem nobody talks about
10:24 - 54s · market insight
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