on the materials of the site - By Coinlive.me
Head of the research department at CoinShares, James Butterfill, refuted criticism of Tether's (USDT) solvency and stability, presenting a detailed response in a CoinShares analytical note.
His rebuttal, focused on reserve data, highlights the impact of ongoing debates on market perception of Tether and broader concerns about the stability of the stablecoin.
James Butterfill, head of the research department at CoinShares, countered recent criticism of Tether's solvency. His responses followed objections from Arthur Hayes and S&P Global, focusing on asset reserves and the risks associated with Bitcoin. Butterfill presented data from the Tether reserves attestation, pointing out a surplus of $6.78 billion. The criticism draws attention to potential risks related to the composition of Tether's reserves. Hayes emphasized the growing risk associated with Tether's profile.
In Butterfill's rebuttal, the strong financial foundation of Tether is highlighted. This comes amid concerns about Tether's increasing dependence on Bitcoin. Institutional investors continue to invest in key digital assets, demonstrating confidence in the crypto infrastructure. A downgrade by S&P was noted, but Butterfill reassured the stability of Tether's reserves. His analysis shows that market confidence remains, evidenced by a steady influx of assets, despite concerns about systemic risk.
Despite concerns, Bitcoin and Ethereum are showing significant inflows, indicating market resilience. XRP has reached record inflows, reflecting mixed sentiment in the altcoin markets. Butterfill suggests that despite some risks associated with reserves, Tether remains stable. His analysis indicates a potential impact on DeFi and participation of institutional investors. Historical trends of global liquidity influencing Tether's position are noted.
"Concerns about Tether's solvency have resurfaced in market commentary, though these concerns appear unfounded," said James Butterfill, head of research at CoinShares.
