All the Times Tether Died (But Didn't)
For Angus and Ben.......
For nearly a decade, Tether has been the punching bag of critics, regulators, and competitors who have repeatedly claimed it was on the brink of collapse. Yet, here we are in 2025, and USDT remains the largest stablecoin in the world, boasting over $142 billion in market cap. If you’ve been in crypto long enough, you’ve seen the cycle; wild allegations, mainstream FUD, and then…nothing happens.
Here’s a timeline of some of the times Tether was supposed to die; and why it didn’t.
2017: "Tether is Printing Money Out of Thin Air!"
FUD: Critics accused Tether of issuing USDT without sufficient reserves, fueling fears of an impending collapse. The controversy escalated after a $31 million hack in November 2017.
Reality: Tether froze the stolen funds and continued operations. Despite accusations, USDT adoption skyrocketed, and demand surged.
2018: "Tether is Manipulating Bitcoin!"
FUD: A study by Griffin and Shams claimed Tether was used to manipulate Bitcoin’s price, artificially inflating the market.
Reality: The report was widely debated, with multiple analysts debunking its methodology. Tether and Bitfinex denied any wrongdoing, and USDT remained the dominant stablecoin.
FUD: In October 2018, USDT briefly de-pegged to $0.87 on Bittrex, causing panic.
Reality: The price quickly rebounded after arbitrage traders stepped in, proving that the peg was not permanently broken.
2019: "New York Attorney General vs. Tether"
FUD: The NY Attorney General accused Tether of covering up an $850 million loss using USDT reserves, fueling insolvency fears.
Reality: Tether settled the case in 2021 with an $18.5 million fine without admitting wrongdoing. The company continued operating without liquidity issues.
2021: "The CFTC Fine and Fake Reserve Panic"
FUD: The Commodity Futures Trading Commission (CFTC) fined Tether $41 million for misrepresenting reserve holdings between 2016-2018. This reignited fears that Tether wasn't actually backed 1:1.
Reality: Tether clarified its reserves and continued growing. It later phased out commercial paper holdings and replaced them with U.S. Treasuries, further solidifying confidence.
2022: "The Terra Collapse = Tether is Next?"
FUD: After Terra’s UST imploded, taking billions with it, skeptics claimed Tether would be the next stablecoin to fail.
Reality: Apparently their size was actually size. Unlike algorithmic stablecoins, Tether is backed by real assets. It briefly de-pegged to $0.95 but recovered in hours, showing its resilience while Terra crumbled to zero.
2023: "Tether Is Being Used for Crime!"
FUD: A Wall Street Journal article claimed USDT was heavily used in illicit activities, increasing pressure for regulatory action.
Reality: Tether responded by highlighting its compliance efforts and cooperation with law enforcement. Despite the media frenzy, no substantial regulatory action followed.
2024: "MiCA Regulations & The End of Tether in Europe?"
FUD: EU exchanges delisted USDT to comply with MiCA regulations, leading to speculation that Tether was losing global relevance.
Reality: USDT adoption (and tether products) in Latin America, Asia, and Africa continued to expand, proving that demand outside Western jurisdictions remains massive.
2025: "Congress Wants to Ban Tether… Again"
FUD: New U.S. bills, including the GENIUS Act and STABLE Act, aim to tighten stablecoin regulations. Critics claim this will "kill" Tether in the U.S.
Reality: Even if U.S. exchanges delist USDT, its global network effect is too strong. As Paolo Ardoino said, "Tether has built one of the widest digital and physical distribution networks in the history of humanity." USDT thrives where it’s needed most, in emerging markets.
The Stablecoin That Won’t Die
Tether has been declared dead more times than anyone can count. Yet, every time the FUD peaks, it survives, adapts, and continues to dominate. The reason is simple: its utility is unmatched, its liquidity is irreplaceable, and its network effect is too strong.
So the next time you see a headline screaming "TETHER IS DOOMED!" ask yourself: who is doing the screaming exactly?
I love stablecoins, Tether in particular, and I will be writing about the ongoing and ever-increasing future stablecoin war. Stay tuned for insights, drama, and analysis as it all unfolds.
P.S. In case you didn’t realize, I am not Patrick Hansen.