Tether has paid out over $10bn in withdrawals for the reason that start of the crypto market crash in early May.
On the time of publishing, Tether’s USDT market capitalisation was at $73.21bn after an all-time high of $84.15bn on 12 May.
The cryptocurrency’s crash comes following the collapse of algorithmic stablecoin TerraUSD, that is supposed to be pegged to the US dollar, which traded at $0.0647 on Monday morning Asia time.
USDT, which is supposed to all the time be value $1, slipped below this peg earlier this month following the collapse of rival token TerraUSD.
The cryptocurrency’s drop in total market value follows Tether’s redemption programme which allows users to trade in USDT for fiat currency.
About $1bn was redeemed after midnight on Saturday, based on public blockchain data.
One other $1.5bn was redeemed in the identical way three days earlier, the Guardian reported.
The newest redemption follows Tether’s release of its most up-to-date audited financial statements at the tip of March.
The statements show that the corporate had secured user deposits with US government bonds, other private corporate bonds, and various other investments value about $5bn.
Tether originally said its reserves were backed by US dollar one-on-one, but after an investigation by the Latest York Attorney General, the corporate said it was not all the time the case and that the cryptocurrency was just backed by “Tether’s reserves”.
In the newest quarterly report, disclosing what these reserves contain, Tether said it holds about $20bn of its money in industrial paper, $7bn in money market funds, and about $40bn in US government bonds.
“Tether has maintained its stability through multiple black swan events and highly volatile market conditions and, even in its darkest days, Tether has never once did not honor a redemption request from any of its verified customers,” Paolo Ardoino, Tether’s chief technology officer had said.
“This latest attestation further highlights that Tether is fully backed and that the composition of its reserves is robust, conservative, and liquid,” he had said last week.