Mon, September 16, 2024 at 18:57

• 

  Joy

  • Hey Annie!

  • Did you hear about Tether's recent surge in market share?

  • It's quite the news!😲

  • 
• Annie

  • Oh, really?

  • What happened?😊

  
• 

  Joy

  • So, Tether's USDT now commands over 75% of the stablecoin market, up from 55% just two years ago!

  • That's a 20% increase!📈

• Annie

  • Wow, that's impressive!

  • How did they manage to grow so much?🤔

  
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• 

  Joy

  • Well, they have a USDT supply of $118 billion, and in the last 30 days alone, they generated $400 million in revenue.

  • Their financial performance has been really strong!💸

• Annie

  • That's a lot of money!

  • Where is all this revenue coming from?🤑

  
• 

  Joy

  • Most of it comes from their investments in Bitcoin and gold, which brought in $3.52 billion in profits in the first quarter of 2024.

  • The rest, about $1 billion, came from their operating profits.📊

• Annie

  • So, they're not just relying on their stablecoin business?

  • Interesting!🤓

  
• 

  Joy

  • Exactly!

  • They're diversifying their income streams.

  • Plus, they're focusing on building a stronger compliance team and have hired Jesse Spiro, PayPal's former head of regulatory relations, to strengthen their government affairs team.🏢

• Annie

  • Sounds like they're really serious about long-term stability and compliance.

  • Is there more?🤔

  
• 

  Joy

  • Yup!

  • Another big indicator of their growth is the USDT balance on crypto exchanges, which hit a record $20.3 billion in August 2024.

  • Traders are stockpiling USDT for potential market opportunities.📈

• Annie

  • So, does that mean investors are preparing for both bearish and bullish market conditions?🤨

  
• 

  Joy

  • Exactly!

  • In bearish conditions, they convert volatile crypto assets into stablecoins like USDT to protect their portfolios.

  • In bullish phases, they accumulate stablecoins to invest in cryptocurrencies when prices dip.

  • It's a smart strategy!💡

• Annie

  • Wow, that's really insightful.

  • So, what do you think?

  • Is this good news or bad news for the market?🤔

  
• 

  Joy

  • Honestly, I think it's a bit of a mixed bag.

  • While Tether's dominance shows strong market confidence in USDT, it also centralizes a lot of power in one stablecoin.

  • If anything goes wrong with Tether, it could have a huge impact on the market.

  • 

  • So, I'd say it's more of a potential risk than a clear positive.🚨

• Annie

  • That's a good point.

  • Thanks for breaking it down for me, Joy!😊

  
• 

  Joy

  • Anytime, Annie!

  • Always happy to chat about the latest news.

  • Catch you later!👋

• Annie

  • Bye!👋

  
• 

  Joy

  • To sum up, this article is considered a 😱Bearish for investors!!