Arthur Hayes, co-founder of BitMEX, has raised concerns about Tether's financial strategy, suggesting potential risks if asset values decline. According to Hayes, Tether is purchasing gold and Bitcoin in anticipation of Federal Reserve interest rate cuts, which could reduce interest income. He warns that if these assets depreciate by 30%, Tether's equity could be wiped out, leading to a theoretical bankruptcy of USDT. Hayes also anticipates that major holders and exchanges may demand real-time balance sheet transparency to evaluate Tether's solvency risk.
Arthur Hayes Warns of Tether's Risk Amid Gold and Bitcoin Purchases
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