On April 2, a Bloomberg analyst named James Seyffart pointed out in an article that Circle has considered USDT's activities as a risk to its business in their S-1 filing. The information shared in the article shows that Circle wrote in the S-1 document, "Negative developments related to USDT, or actual or perceived instability of USDT, could cause a loss of confidence in other stablecoins, including those issued by Circle."
Temporary price fluctuations in the secondary market or a comprehensive run on USDT could lead to a demand for exchanging for strong currency, or similar price deviations in the secondary market for Circle's stablecoin. Although Circle has never been unable to meet customers' minting or redemption requests when other stablecoins experience such price deviations, the volatility of capital inflows and outflows and the minting or redemption demand could be so strong that Circle might face operational difficulties in meeting those requirements.
This content is only intended to provide market information and does not constitute investment advice.
