Not all crypto companies are victims of the bear market. Tether, the manager of stablecoin USDT, announced that it made $700 million in profits in the last quarter of 2022.
Tether wins in the midst of the bear market
The year 2022 was a tough one for the crypto industry. Due to the prolonged bear market, many crypto companies have seen their revenues decline. Some have had no choice but to lay off a lot of their staff. Others, like LocalBitcoins, have simply shut down their operations.
In this difficult environment, Tether, the company behind the stablecoin USDT is doing just fine. In fact, the company announced that it made profits of over $700 million in the last quarter of 2022. This represents a daily profit of $7.5 million.
Last quarter, Tether generated over $700 million in profits.Paolo Ardoino, CTO of Tether
In addition to profits, Tether also achieved other strong economic performances amid the bear market. The company announced that it has completed over $21 billion in redemptions and issued over $10 billion in 2022. For Tether’s CTO, this positive track record demonstrates Tether’s stability, resilience and continued growth, even in a bear market.
What makes Tether thrive?
As we said earlier, Tether is one of the few crypto companies that are doing well in the midst of a bear market. This is probably due to the fact that the company runs a stablecoin. This is because unlike other cryptocurrencies that are very volatile in value, stablecoins keep their value stable. Thus, stablecoins are a safe haven for many crypto investors in times of bear market.
Moreover, Tether’s USDT stablecoin is guaranteed off the blockchain and almost spared from any collapse risk unlike the late UST stablecoin. According to an analysis report by accounting firm BDO, Tether’s funds are backed by nearly $60 billion, 82 percent of which is in U.S. Treasury bonds.
Beyond managing the USDT stablecoin, Tether is also committed to promoting the crypto. In particular, the company is a strong ally of the Swiss city of Lugano in the adoption of Bitcoin. In particular, it is thanks to Tether’s support that several Lugano businesses accept crypto payments. It remains to be seen whether the FUD around stablecoins will damage the company in 2023.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.