Only this crypto had a good week – Tether gains record profits

Ever since a New York judge’s ruling, the company behind Tether, the largest stablecoin in the crypto industry, has been forced to publish a quarterly report every three months. As the stablecoin is the third largest cryptocurrency, US market regulators want to be assured that crypto investors can park their money in USDT with confidence.

This is because after the Luna market crash in the spring of 2022, it was mainly the behavior of that other Terraform Labs coin, namely stablecoin TerraUSD, that worried investors.

Ever since then, Tether has been viewed with suspicion.

TerraUSD

Back in 2020, Terraform had started offering TerraUSD, its own stablecoin. Typically, stablecoins are pegged to a stable asset such as the US dollar. Traders often use stablecoins to buy and sell other riskier assets or to ‘park’ their money during high volatility.

But TerraUSD was risky, even by the standards of experimental crypto technology. Unlike the most popular stablecoin Tether, TerraUSD was not backed by cash, government bonds or other traditional assets. Instead, it derived its stability from algorithms that tied its value to Luna. After Luna’s value collapsed, TerraUSD naturally lost its peg to the US dollar and started to slide.

Tether Records $4.52 Billion Profit in Q1.

Tether’s USDT Market Share on CEXs Drops to 69% YTD pic.twitter.com/WGGDz8ZjXH

— Kashif Raza (@simplykashif) May 2, 2024

Tether’s market cap is a multiple of what TerraUSD’s value ever was. Tether’s total value is currently around $110 billion, and that amount is mainly invested in US government bonds. This netted the company a very healthy profit in the first quarter of 2024, as Tether achieved a profit of around $4 billion. Well, at least one crypto coin is having a good week.