Tether revises investment raise plans
According to a report by The Financial Times, the developers of the Tether cryptocurrency have revised their investment raise plans. The company previously considered raising $20 billion, but due to investor resistance to such ambitious business valuation targets, Tether has decided to reduce the requested amount to $5 billion.
The initial goal of valuing Tether at $500 billion caused confusion among investors. In their opinion, this was clearly an overestimated valuation for a company that issues one of the largest stablecoins in the world. For comparison, the market capitalization of another popular stablecoin, USD Coin (USDC), is around $55 billion.
It is worth noting that Tether has been at the center of various scandals related to the transparency of its reserves and the legality of its activities for several years now. Despite this, Tether remains one of the key players in the cryptocurrency market, actively used by participants in the traffic arbitrage industry and other digital marketing sectors.
Experts believe that Tether's reduction in investment raise ambitions may be due to the company's desire to avoid additional scrutiny and attention from regulators. However, $5 billion is still a very substantial amount that will allow Tether to strengthen its position in the stablecoin market.