USDT Thrives In Market Cap Growth, But Theft Risks Grow With Scams On The Rise

USDT, the largest stablecoin in the crypto market, is once again approaching its all-time high market capitalization of $82 billion, which it briefly touched during the collapse of LUNA last year. 

However, despite its current dominance, Tether’s stablecoin is not invulnerable to external threats, such as the possibility of theft, which could disrupt the market and impact the coin’s value.

Where is USDT headed next? Despite its recent return to almost all-time high market capitalization levels, there is still uncertainty about what the future holds for Tether’s stablecoin. 

USDT Treasury Composition And Market Performance

With a current price of $0.999949, USDT has experienced a minor 0.03% decline in the past 24 hours. To support the value of its stablecoin, Tether maintains a well-diversified treasury. 

According to the company’s website, cash and cash equivalents, such as treasury bills and bank deposits, comprise 82.13% of its treasury, while the remainder is distributed among corporate bonds, secured loans, and other digital assets like ETH and BTC.

Image: Schroders

Despite a decline in interest from large investors, the stablecoin’s market capitalization has continued to rise, indicating that its growth is primarily driven by retail investors. 

This trend suggests that despite concerns over its treasury diversification and market volatility, USDT remains an attractive option for many retail investors seeking a stable and secure investment opportunity.

The Stablecoin And Threat Of Cryptocurrency Scams

The increase in popularity of cryptocurrencies has also given rise to a surge in scams and fraudulent activities. Unfortunately, the stablecoin has not been immune to this trend. 

In fact, recent data from Dune Analytics reveals that hte amount of USDT stolen by scammers has significantly increased in recent months. In March 2023 alone, $26.36 million worth of USDT was stolen from unsuspecting victims, highlighting the growing threat of cryptocurrency scams.

USDT total market cap currently at $81 billion on the daily chart at TradingView.com

The prevalence of these types of scams not only poses a significant risk to investors but also to the reputation of stablecoins like USDT. Negative publicity surrounding such incidents could impact the trust and confidence of investors, potentially leading to a decline in demand for the stablecoin.

Despite this threat, Tether has continued to maintain a diverse and secure treasury to support the value of the stablecoin. With a well-diversified portfolio, USDT remains an attractive investment option for many retail investors seeking a stable and secure investment opportunity.

While the threat of cryptocurrency scams cannot be ignored, USDT’s strong market performance and diversified treasury indicate that it is well-positioned to weather the storm and maintain its position as a leading digital currency in the cryptoverse.

-Featured image from Vauld