Tether Holds $3.4 Billion In Gold Reserves, Nears ATH Market Cap 1 Year Post Terra Collapse

Name	Symbol	Market	Market Cap ($)	Algorithm
Tether USD	USDTUSD	Crypto	97,841,827,649	Not Mineable

Name

Symbol

Market

Market Cap ($)

Algorithm

Tether USD

USDTUSD

Crypto

97,841,827,649

Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	0.00	0.00%	1.00	1.00	1.00

Price Change

Price Change %

Current Price

Bid Price

Offer

0.00

0.00%

1.00

High Price	Low Price	Open Price	Prev. Close	52 Week Range
1.00	0.9998	1.00	1.00	- - -

High Price

Low Price

Open Price

Prev. Close

52 Week Range

1.00

0.9998

1.00

- - -

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	04:45:30	3,000.00	1.00	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

04:45:30

3,000.00

1.00

USD

Price x Volume	Volume	Base Symbol	Related Pairs
31,921,196.80	31,910,102.89	USDT	USDTEUR	USDTGBP	USDTBTC

Price x Volume

Volume

Base Symbol

Related Pairs

31,921,196.80

31,910,102.89

Tether Holds $3.4 Billion In Gold Reserves, Nears ATH Market Cap 1 Year Post Terra Collapse

14/05/2023 7:40am

NEWSBTC

Tether (USDT), the world’s largest stablecoin by market capitalization, was one of the dollar-pegged cryptocurrencies to have been affected by the collapse of the Terra ecosystem. Now – a year later, the stablecoin has reclaimed its stable dollar peg and boasts one of the deepest reserves in the cryptocurrency industry. Related Reading: Tether Smashes Records, $1.48 Billion Profit In Q1- Surplus Over Reserves Hits All-Time High Prominent Crypto Figure Dubs Tether A ‘Precious Metals Powerhouse’ Gabor Gurbacs, on Friday, May 12, provided an insight into the significance of precious metals to Tether’s financial setup. Interestingly, Gurbacs, the founder of PointsVille, dubbed Tether’s USDT a “precious metals powerhouse”. According to Gurbacs’ tweet, Tether Holdings Limited, the issuer of the USDT stablecoin, has placed substantial importance on gold, forging a solid reputation in the industry. His tweet also reveals that USDT, the third-largest cryptocurrency by market cap, has a staggering sum of roughly $3.4 billion in reserves held in gold. In the same breath, Gurbacs noted that approximately $500 million backs the circulating supply of Tether Gold (XAUT), Tether’s gold-pegged stablecoin. Furthermore, the amount of gold in Tether reserves far outweighs that of Bitcoin (BTC), which stands at about $1.5 billion. From Gubarcs’ perspective, the diversity of the USDT reserves – which consists of gold, cash, corporate bonds, BTC, etc. – helps protect the stablecoin against potential market collapses and unexpected negative events. Considering his advisory role within the firm, it may be fair to consider Gubarcs’ analysis of Tether’s financial strategy as an insider viewpoint. Terra Collapse – One Year Later In one of the most catastrophic events in the crypto industry, the Terra ecosystem collapsed in May 2022, with its UST stablecoin losing its dollar peg. The ripple effect saw investors lose faith in most dollar-backed assets, including Tether USD. This caused the panic sale of these dollar-backed assets. As a result, Tether’s dollar peg broke momentarily, with the token falling as low as 92 cents at times. Furthermore, two months after the Terra collapse, Tether’s market capitalization had dropped by roughly $16 billion to $65 billion, an indication of massive withdrawals by token holders. While this unfortunate event was an unexpected test of USDT’s resilience and stablecoins, as an entity, many would agree with the fact that Tether passed the test resoundingly. After all, USDT regained its dollar peg only two months after the crash. Meanwhile, in terms of market capitalization, USDT has made a robust recovery since. In fact, USDT’s market cap currently stands at $82.9 billion, according to data from CoinGecko. This means that the stablecoin is now more than ever closer to its all-time high market cap of $83 billion. Tether USD maintains dollar peg | Source: USDTUSD chart from TradingView Related Reading: Tether: How Its $2 Billion USDT Minting Impacts Ethereum’s Success In The Bull Market -Featured image from Wit Olszewski/Alamy, chart from TradingView

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