Do you have Tethers (USDT) in your Wallet? Pay attention to these 3 fundamental points!

Earn 12% passive income on your Tethers on Nexo!

Instead of letting your USDT sleep in your wallets, you can invest them in staking or lending platforms and earn passive income. Nexo offers one of the highest annual returns for Tether. Nexo is a cryptocurrency exchange and lending platform that allows you to manage your cryptocurrencies while earning passive income.

The site also offers debit cards and lines of credit at competitive prices, but to qualify for the best rates, you need to hold a certain amount of the native currency of Nexo, NEXOin your wallet.

Go to the Nexo website.

Tether is a bulwark against market volatility

Tether is beneficial to cryptocurrency investors because it allows them to escape the high volatility of other cryptos. A bit like gold for the equity markets. This is why, despite the controversies, crypto remains highly coveted.

Moreover, the use of USD (rather than Euro or Dollar) reduces transaction fees from converting fiat currencies to cryptos. It also becomes faster to convert your cryptos in order to escape volatility.

JPMorgan warns of Tether’s influence

The 3rd cryptocurrency in terms of capitalization does not have very good press. iFinex, the parent company of Tether Limited and Bitfinex, initially hid the link between the crypto exchange and Tether.

The backing of Tether to the dollar has also been debated. Its dollar reserves were due for an audit in 2017, but that never happened. This audit was intended to ensure that the reserves of the cryptocurrency were maintained.

When New York Attorney General Letitia James realized that Tether’s parent company was hiding an $850 million USD deficit by tapping into the currency’s reserves in 2019, she launched an investigation. In 2021, Tether reached a settlement with James, promising to pay an $85 million fine and stop doing business with New Yorkers.

Thus, many experts, including JPMorgan analysts, believe that Tether is not the guarantee of stability that it claims to be. It is, on the contrary, considered as a possible danger for financial stability with systemic risk since it weighs 82.5 billion dollars (as of April 12).

Either way, traders use Tether to secure their crypto assets in the event of high market volatility.

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