Wall Street Journal analysts believe that USDT stablecoin could fall at any time

Wall Street Journal analysts Gene Eaglesh and Vicki Ge Huang have found out that the most popular stablecoin Tether (USDT) could collapse at any time.

According to a report by Gene Eaglesh and Vicky Ge Huang, «Tether is on the brink,» so even a 0.3% drop in the value of its reserve assets could make USDT technically insolvent. As it became known, Tether’s liabilities almost exceed its assets: at the time of writing, Tether has assets worth about $ 67.7 billion and liabilities of $ 67.5 billion, which means a difference of less than $ 200 million.

Interestingly, Tether CTO Paolo Ardoino disagrees with the thesis of a possible collapse of the stablecoin: «I don’t think Tether is going to crash anytime soon. We have everything under control,» Paolo Ardoino emphasized.

Interestingly, Wall Street Journal analysts do not consider the USDT team’s refusal to comply with the bans on the Tornado Cash cryptocurrency mixer to be one of the reasons for the possible problems of the stablecoin. Thus, Tether (USDT) became one of the few companies that continued to serve addresses associated with Tornado Cash. Last week, investors transferred their savings from USDC to USDT in the amount of about $ 1.6 billion — this happened after Circle, following the bans from the US Treasury, blocked 44 USDC addresses associated with Tornado Cash.