Tether saw billions of dollars in outflows the past week, amounting to almost double its last reported cash reserves as the stablecoin fallout from Terra’s collapse continues.
) resulting in its market capitalization falling by 7.8% over the past seven days to $76 billion.
The amount withdrawn from the top stablecoin is nearly double the $4.1 billion it held in cash reserves at the end of 2021 according to Tether’s latest reservesTo maintain Tether’s peg with the US dollar the company behind the token backs USDT with assets such as cash, bonds, and Treasury bills, the purpose being that each token is backed by at least $1 worth of assets.
According to the latest reserves report, the company had a total assets amount of at least $78.6 billion, around $4 billion or 5% of which was cash. However, the firm seems to be able to maintain its cash reserves despite the “bank run” scenario caused by the
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