Organize the Ponzi scheme or the dollar hegemony? Behind the USDT trillion empire: using Chinese money to buy US debts and harvest the global 'shadow dollar'! * - Deeply explore how Tether monopolizes cryptocurrency with opacity profits. Gambl

As the world's largest and oldest stablecoin, USDT (Tether) has a development history, underlying logic and key breakthrough points that reflect the evolution of the cryptocurrency market's demand for stability, and also expose the potential risks of centralized stablecoins. The following is an in-depth analysis from three dimensions: development history, underlying logic, key breakthrough points and events: --- ### 1. Development history: From start-up to market dominance 1. Birth and early stages (2014-2017) USDT was launched by Tether Limited in 2014. It was originally issued on the Omni protocol based on the Bitcoin network, aiming to solve the volatility problem of the cryptocurrency market by anchoring the US dollar 1:1. Its early positioning was to provide liquidity to exchanges and replace the pain points of limited access channels for fiat currency. - 2015: USDT officially launched on mainstream exchanges and became the main trading pair for BTC trading. - Bull market in 2017: USDT expanded rapidly due to surge in exchange demand, with circulation increasing from tens of millions of dollars to billions of dollars, but at this time it has caused controversy over opaque reserves. 2. Expansion and multi-chain layout (2018-2020) - 2018: Launch ERC20-USDT based on Ethereum to improve transaction speed and reduce handling fees to adapt to the needs of the DeFi ecosystem. - 2019: Tron TRC20-USDT is launched, focusing on "zero handling fees" to further expand cross-chain compatibility. - 2020: USDT circulation exceeded US$20 billion, accounting for more than 70% of the stablecoin market, becoming the "infrastructure currency" of the crypto market. 3. Regulatory Challenges and Market Consolidation (2021-present) - 2021: Tether reached a settlement with the U.S. Attorney General of New York due to reserve opacity, paid a fine of $18.5 million, and promised to regularly disclose the reserve audit report. - 2023-2025: USDT circulation exceeded US$140 billion, accounting for 69% of the stablecoin market. At the same time, facing pressure from EU MiCA regulations, some exchanges removed USDT trading pairs from the European market. --- ### 2. Underlying logic: mechanism and dispute 1. The anchoring mechanism USDT claims to support issuance with a reserve of 1:1 USD. The reserves include cash, short-term treasury bonds and other assets, but the specific content is long-term opaque. Its underlying logic relies on the credit endorsement of centralized institutions rather than decentralized algorithms or over-collateralization. 2. Centralized risk - Reserve management dispute: Tether has been questioned many times that he has not fully held the full US dollar reserves. For example, only part of the reserves disclosed in 2021 is cash, and the rest are risky assets such as commercial paper. - Related Transaction Issues: Tether overlaps with an executive on exchange Bitfinex, accused of manipulating the price of Bitcoin by issuing additional USDT. 3. The core value of functional positioning USDT lies in providing a "bridge" between fiat currency and cryptocurrency, especially in cross-border payments, arbitrage transactions and risk aversion scenarios. For example, emerging market users resist local currency inflation through USDT, and exchanges rely on it as their primary liquidity tool. --- ### 3. Key breakthrough points and events 1. Technological breakthroughs: Multi-chain expansion - Omni to ERC20/TRC20: By supporting public chains such as Ethereum and Tron, USDT has solved the problem of slow transfer speed and high handling fees in Bitcoin network, significantly improving availability. - Cross-chain liquidity: Multi-chain layout makes it the underlying asset of the DeFi ecosystem, such as the main liquidity pool in protocols such as Curve. 2. Market Trust Crisis and Response - 2018 Decoupling Event: Due to the market's panic about reserves, the USDT price once fell to $0.85, and Tether gradually restored confidence by increasing his treasury bond reserves. - The Luna collapse in 2022 affected: The UST algorithm stablecoin burst has triggered the industry's comprehensive doubts about stablecoins, but USDT still maintains its dominance due to market inertia. 3. Regulatory Game and Compliance - US Legislative Pressure: Tether plans to launch a new stablecoin in compliance with US regulations in 2025, trying to enhance its compliance image through cooperative regulators such as Cantor Fitzgerald. - Driven by emerging market demand: In areas where fiat currencies are unstable, such as India and Nigeria, USDT has become a daily payment tool, driving its circulation to continue to grow. --- ### 4. Future challenges and enlightenment 1. Competition and substitution - Transparent competitors: USDC seizes the institutional market with its compliance and audit transparency, and is regarded as the "safeest stablecoin" in 2024. - Decentralized alternatives: Over-collateralized stablecoins such as DAI divert users in DeFi, but USDT is still difficult to replace due to high liquidity. 2. Systemic Risk If a USDT runs or reserve crisis occurs, it may trigger a systematic collapse of the cryptocurrency market. For example, during the 2022 FTX burst, the brief decoupling of USDT caused market panic. 3. Balance between regulation and innovation Tether needs to find a balance between compliance (such as transparency of reserves) and market expansion (such as penetration of emerging markets), while responding to the potential impact of CBDC (central bank digital currency). --- ### Summary The rise of USDT is the product of the combination of market demand and centralized efficiency, but the fragility of its underlying logic (relying on the credit of a single institution) is always a hidden danger. In the future, Tether needs to consolidate its position through technological upgrades (such as on-chain reserve proof) and regulatory cooperation, otherwise it may be gradually replaced by more transparent stablecoins or CBDCs. Its development history provides a classic case for the cryptocurrency industry to compromise with the "stability demand" and the "decentralized ideal". #Correspondence Guide#Bitcoin#fortune#Global Payment#Correspondence Circle Investment#Correspondence Circle#Ethereum#Financial#God of Wealth