The post Will USDT Crash to Zero? One Analyst Predicts USDT’s Demise appeared on BitcoinEthereumNews.com.

Tether’s alleged lack of audits, delistings on EU exchanges, and the minting of new tokens are the primary reasons Its Q1 2025 report claims $115 billion in Treasuries plus $5.6 billion in excess reserves, but no certified auditor has verified this line-by-line Tether refused to comply with MiCA, so Binance, Kraken, and other exchanges delisted USDT in Europe A recent social media post from Chain Mind raises concerns that USDT (Tether) could follow UST to $0, pointing to Tether’s alleged lack of audits, delistings on EU exchanges, and the minting of new tokens. The post is also accompanied by the image depicting a hypothetical crash of Tether from $1 to near $0, drawing parallels to the 2022 TerraUSD (UST) collapse, where UST lost its $1 peg due to insufficient reserves. The core concerns Several reasons were mentioned on why this might happen. For starters, Tether frequently mints large batches of USDT (marked authorized but not issued), which are effectively ready for circulation but not yet in the market. Just this month, Tether minted $2 billion in new USDT on TRON. While the platform says this is routine inventory management, skeptics see it as possible preparation for redemption waves, when many investors quickly pull their money out of a fund, causing a large outflow. Then, according to Chain Mind, the absence of real audits is another red flag, considering that Tether claims it’s fully backed but regulators disagreed in the past. For instance, in 2021, the New York Attorney General (NYAG) concluded that Tether misrepresented its reserves. As a result, the platform had to pay $18.5 million in penalties and agreed to periodic attestations, but there were no independent forensic audits.  Tether’s Q1 2025 report claims $115 billion in Treasuries plus $5.6 billion in excess reserves, but no certified auditor has…

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Filed under: News - @ June 27, 2025 8:27 pm