Deso's viral post raises concerns over Tether's backing, suggesting high-risk financial strategies may threaten its stability - IcoHolder.
A viral post by crypto analyst Deso on X has sparked concerns about the stability of Tether (USDT), the world’s largest stablecoin. Deso claims that Tether may not be fully backed by real US dollars as widely believed, but could instead rely on borrowed funds and high-risk financial strategies. This revelation raises alarming questions about the potential fragility of the entire crypto market.
Tether, designed to maintain a 1:1 peg with the US dollar, plays a critical role in cryptocurrency trading and decentralized finance (DeFi). Deso’s analysis suggests that rather than being fully backed by cash reserves, Tether’s value may be sustained through complex borrowing cycles. According to Deso, firms such as Abraxas, Cumberland, and Wintermute have been using borrowed funds to purchase USDT, converting it into cryptocurrencies like Bitcoin, and selling it back for dollars. This cycle continues as long as crypto prices remain high and demand stays strong.
Deso warns that this setup could be inherently unstable, comparing it to a Ponzi scheme. If cryptocurrency prices were to fall or demand for USDT to dry up, the entire system could collapse, leaving borrowed funds unpaid. The analyst's concerns highlight the potential risks of over-leveraging in an already volatile market.
Further raising suspicions, Deso pointed out that Tether recently moved its headquarters to El Salvador, a country without an extradition treaty with the United States. This move has sparked additional questions about the company's transparency and operational practices. Additionally, Deso revealed that Tether’s co-founder, Giancarlo Devasini, now controls at least $150 billion in USDT, according to blockchain tracking tools like Arkham Intelligence.
Deso has called on journalists, investigators, and the wider crypto community to closely examine Tether’s reserves and business operations. With concerns mounting over the stability of the cryptocurrency giant, many are questioning whether Tether’s financial backing is as secure as it claims to be.
