Investors Do Not Have to Worry About USDT, Assurance by Co-Founder of Tether

Ever since the crash of the Terra network, the UST has faced a huge drag. While people are trying to save their investments and are pulling out of UST and LUNA, Tether has found itself becoming the center of attention.

This is because Tether has a strong (basic) connection with UST, as Tether (USDT) itself is a stablecoin. According to facts, USDT is not just a stablecoin but it is the largest stablecoin in the entire cryptocurrency industry.

For a long time, USDT has remained a topic of discussion and argument among the cryptocurrency market observers for being an asset without any physical backing.

The USDT Executives Have a Firm Stance

However, the creators of USDT are firmly defending USDT’s stance for being an asset that is fully backed. Reeve Collins, the CEO of BLOCKv and the co-founder of Tether has recently made his claims about the largest stablecoin. He claimed that Tether is without a doubt a fully backed stablecoin.

 The users will never ever face any problems when withdrawing or cashing out the stablecoin. Instead, they can continue saving up money in the form of USDT and take it out without any issues or concerns.

Tether has Full 1:1 Backing

The stablecoin has complete backing of 1:1 versus the US dollar. This makes it a very safe stablecoin to accumulate money in. They have reserves that are backing up the USDT and cash is not the only mode of worth they have stored for USDT at the banks.

Collins reassured all the cryptocurrency enthusiasts and investors about the authenticity of USDT and its claim. He added that they have always remained true to their claims and reputation.

They will continue doing that and if something unusual happens and people request an altogether withdrawal of $10 billion, USDT will honor that. They will face no such issues about not being able to withdraw the money.

However, he did comment on a theory about the liquidation of all the circulating Tether in a single go. He revealed that there can be a problem when an all-out request is launched to withdraw all of the circulating USDT.

That may indeed cause a problem by exerting huge pressure on the entire system. It can result in the system crashing but it won’t mean that the users will lose their USDT before being redeemed. Tether is a stablecoin that has many financial instruments backing it up. Therefore, in a particular case, it can take a while before all the assets are liquidated and then the withdrawals will be made possible.

Collins stated that USDT would never face an issue similar to the likes of UST because it is fully backed. Therefore, the investors can hold and liquidate USDT without any hesitation or problems.

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