Who Needs Audits When You've Got Tether's Word? :)

GM Guys and Gals,

It seems like there’s never a dull day in the world of cryptocurrencies. Today’s breaking news: Silvergate, the US bank catering to the crypto industry, is in trouble. And everyone’s running away from it like a group of kids running from a beehive.

But fear not, because Tether has come to the rescue! According to Tether CTO Paolo Ardoino, his company has absolutely no links to Silvergate. Phew, crisis averted.

Silvergate has been struggling financially, with a net loss of $1 billion and a decline in customer deposits of around $14 billion in the last quarter of 2022. Looks like the bank is in more hot water than a lobster in a pot.

Now, companies in the crypto industry are cutting ties with Silvergate faster than a bad haircut. Even Coinbase, America’s biggest crypto exchange, is halting payments to and from the bank. Ouch.

But let’s take a moment to appreciate Tether’s success, shall we? Despite the brutal bear market that’s currently plaguing the crypto industry, Tether is apparently doing pretty well. It reported generating $700 million in profits in Q4 2022, despite processing $21 billion in redemptions last year. Talk about a money-making machine.

Tether’s stablecoin, USDT, is the third-largest cryptocurrency after Bitcoin and Ethereum, with a market cap of $71 billion. And it’s traded more than any other digital asset, with a 24-hour trading volume of over $34 billion. That’s a lot of zeroes.

But let’s not forget about Tether’s controversial reputation. The company has refused to prove that its stablecoin is backed by US dollars, and it’s not independently audited. Oh, and it also had to agree to no longer do business in New York after being investigated for “making false statements about the backing” of its stablecoin. Yikes.

So there you have it, folks. Silvergate is sinking faster than a rock in a pond, but Tether is still flying high. Who needs audits and back when you’ve got profits and market dominance, am I right?

As the crypto world continues to evolve, we will keep you updated on all the latest developments. Stay tuned for more updates from Web3shala.

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That’s it for the day, Web3Shala 👋

To the Moon 🚀