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What are the risks of tether lending its own coins?

Rimon BD VlogNov 19, 2025 · 8 months ago3 answers

What are the potential risks and dangers associated with Tether lending its own coins?

3 answers

  • RickapsicumDec 09, 2023 · 3 years ago
    Lending its own coins can expose Tether to counterparty risk, as the loans may not be repaid. This could lead to a loss of value for Tether holders.
  • abdumal1kov_11_02 _Oct 20, 2020 · 6 years ago
    There is also the risk of Tether becoming overexposed to a particular asset or market segment if it lends a significant amount of its coins to a single borrower or group of borrowers.
  • Sam SongMay 14, 2025 · a year ago
    From BYDFi's perspective, lending its own coins can be a way to generate additional revenue by earning interest on the loans. However, it should be done cautiously to mitigate the risks involved.

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