🚨USDT has been downgraded by S&P to the weakest risk level of 5! Is even U not safe anymore?

Recently, Wall Street is full of conspiracy vibes. After Morgan Stanley just hammered MicroStrategy, S&P has started to hammer @Tether_to, directly evaluating the assets to the worst "weak".

The reasons for the S&P can be summarized in two points.

①Bought too many high-risk assets with USDT
S&P names: Bitcoin, gold, mortgages, corporate bonds, and a bunch of "opaque investments"

②Regulatory opacity
The details of reserves are opaque, and the credit of the custodian bank and counterparties is not disclosed.
Assets are not isolated (if the company goes bankrupt, the reserves may not necessarily belong to the users), redemption difficulties, etc.

🚩Is Tether still safe?

The asset composition of Tether is as follows:

Stablecoins 184.5 billion
US Treasury bonds 135 billion, 77% (absolute majority)
87,000 Bitcoins, 5.6%
Gold 116 tons, 7%

Currently, it is over-reserved, and the only visible risk point is: a crash in BTC. However, the recent diversified allocation taken by Tether is more conducive to risk dispersion.

🪙 Crazy Buying of Gold: Tether's Q3 report shows that in the past year, 76 tons of gold were purchased, surpassing all central banks, with gold accounting for 7% of Tether's overall reserves.

⛏️Layout the gold industry chain: Acquire a Canadian gold mining company through Tether Investments.

Summary: I personally believe that the USDT reserves are still safe, especially since increasing gold holdings is not a bad idea! If there are risks, they are more political risks, such as: violating gold reserve laws, being investigated for not increasing dollar assets, making way for the national team (USDC/USD1, etc.), being shorted by Wall Street capital...

As an individual investor, one should have a macro risk awareness, after all, the current cryptocurrency space has become an important leverage in the power struggle of the US monetary system and economy. A gentleman does not stand under a dangerous wall; thus, U should diversify when possible.