Arthur Hayes: A 30% Drop in Tether’s Gold and BTC Holdings Would Render It Insolvent

BlockBeats News, November 30, BitMEX co-founder Arthur Hayes posted that the Tether team is in the early stages of conducting a large-scale interest rate trade. My interpretation of Tether's reserve audit report is that they believe the Federal Reserve will cut interest rates, which will severely impact their interest income. In response, Tether is buying gold and BTC. Theoretically, when currency prices (interest rates) fall, these assets should surge. If the "gold + BTC positions" drop by about 30%, it would wipe out their equity capital, and then USDT would theoretically become insolvent. I believe some large holders and trading platforms will demand real-time access to Tether's balance sheet to assess solvency risk.

Get your popcorn ready, as mainstream media is expected to hype this up, especially those editors suffering from "Trump Derangement Syndrome" (TDS), who want to take the opportunity to attack Lutnick and Cantor, the supporters of this stablecoin—referring to Commerce Secretary Howard Lutnick and his financial services firm Cantor Fitzgerald, the main backers and partners of Tether.