Tether Earns Money Through A Variety Of Commissions, The Company Achieved A Net Profit Of $700 Million

Tether presented a report yesterday that included its financial data for the final quarter of 2022. Notably, the largest stablecoin issuer in the world for the cryptocurrency market has just made public its first profit announcement.

$700 million in the fourth quarter of 2022

Tether stated that the company achieved a net profit of $700 million in the fourth quarter of 2022 and that all of the money was kept on the balance sheet to boost the reserve. The previous quarter was highly successful for the company because it took advantage of the US Federal Reserve's hike in interest rates, which increased the yield on bonds that Tether also owns.

Tether earns money through a variety of commissions, including a $1,000 withdrawal fee (with a $ 100,000 minimum withdrawal threshold), investments in digital tokens and precious metals, and loans to other organizations, according to experts.

Tether is the creator of USDT

As I mentioned before, Tether is the creator of USDT, the largest stablecoin in the world by market capitalization. However, as history demonstrates, this is not always the case. Stablecoins are digital tokens that are entirely backed by the equivalent value of reserve assets.

Many lawmakers have long been concerned that the Tether token is not completely protected one-to-one with the corresponding amount of reserves. When terraUSD (LUNA), the supposedly algorithmic stablecoin, dropped to zero dollars in May last year, USDT momentarily lost its bound. Tether clarified that this was a product of USDT trading volatility and not a reflection of its capacity to pay back investors' funds.

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Tether has declared that all commercial securities have been withdrawn 

The fact that Tether formerly held the majority of its assets in commercial instruments in the form of unsecured short-term corporate debt, raising the possibility of a liquidity crisis, is another cause for concern. Since then, Tether has declared that all commercial securities have been withdrawn from its balance sheet and have been replaced with US Treasury bills. On which, incidentally, the corporation made good money, as we can see from the report.

Tether announced yesterday that it had increased the amount of US government debt obligations once more, bringing the total to more than 58% of its assets.

The technological state of bitcoin 

Regarding the technological state of bitcoin right now, it is still under a lot of pressure. The bulls' immediate target is to defend the $21,700 level after missing $22,500. Only after the return and consolidation around $22,580, which will reinstate the positive trend with the possibility of updating $23,350 and $24,000, will it be feasible to discuss the restoration of the buyers' initiative. The $25,034 level will be the farthest target, where significant profit-taking and a rollback of bitcoin may take place. The $21,700 level will need to be protected if the pressure on the trading instrument continues because a breach would be a blow to the asset. This will put pressure back on bitcoin and create a direct path to $20,740. The first cryptocurrency ever created will "drop" in this location along with $19,770 if this level is broken.

The breakdown of the nearest resistance at $1,604 is what ether buyers are concentrating on. This is going to be sufficient to establish a foothold at the current highs and keep the bullish trend going. However, the market will not be significantly altered as a result. The amount will only be returned to the ether with the possibility of growth to a maximum of $1,758 if there is a consolidation over $1,690. The $1,819 area will be further off target. While keeping pressure on the trading instrument, the level of $1,534 will be in play, just below which $1,410 is seen. If it succeeds, the trading instrument will rise to a minimum of $1,320. It will be very difficult for bitcoin owners below $1,260.

 

Relevance up to 08:00 2023-02-11 UTC+1 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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