In a post today on X, formerly Twitter, by Anthony Pompliano, a prominent American entrepreneur, investor, co-founder and partner at Morgan Creek Digital Assets, and host of The Pomp Podcast, Anthony presented a compelling argument entitled: “Tether May Be The Best Business in the World.” In a world where sceptics of blockchain technology are often quite vocal about dismissing its impact, Pompliano sheds light on how Stablecoins, in particular Tether, have emerged as a game-changer in the digital financial landscape.
Critics often claim that blockchain technology has failed to produce tangible products, asserting that the crypto community merely engages in speculative trading without addressing real-world issues. In his post, Pompliano firmly challenges this viewpoint by highlighting Bitcoin, an $850 billion asset with a substantial portion held by long-term holders aiming to safeguard their purchasing power.
Going beyond Bitcoin, he argues that Stablecoins have become the “killer app” of blockchain technology. Using Tether, the leading Stablecoin, as a prime example, he emphasised the company’s staggering success, boasting nearly $100 billion in various Fiat currencies tokenized on different blockchains.
Tether’s innovative approach to tokenizing assets, particularly cash, has catapulted it into the ranks of the best businesses globally. CEO Paolo Ardoino @paoloardoino recently shared Q4 performance statistics, revealing a profit of $2.85 billion, with $1 billion derived from net operational profit (mainly US t-bill interests) and $1.85 billion from gold and Bitcoin holdings.
With a $2.85 billion profit within a 90-day period, Tether is on an annual run rate of $11.4 billion, surpassing even the financial giants like Goldman Sachs. This remarkable achievement prompted Bitwise CIO Matt Hougan @Matt_Hougan to highlight Tether’s outperformance in comparison to traditional players in the financial sector.
Messari CEO Ryan Selkis @twobitidiot drew attention to Tether’s extraordinary feat, noting that Tether’s profits constitute 10% of JP Morgan’s net profit, despite having a significantly smaller workforce of around 50 employees compared to JPM’s 250,000. This stark contrast challenges conventional notions of scale and profitability in the financial industry.
Pompliano introduced a mind-boggling statistic – even if Tether had 100 employees, the company would be generating over $100 million in profit per employee. This revelation defies industry norms and showcases the unparalleled success of Tether as a groundbreaking business model built on blockchain technology.
Contrary to sceptics, Pompliano asserts that Stablecoins, including Tether, USDC, and others, will continue to gain popularity globally as people seek efficient and cost-effective means of transferring stable value. He challenges those who argue otherwise, suggesting that such opinions are either misinformed about market dynamics or driven by a reluctance to acknowledge the rapid progress in the space.
As Tether consistently defies critics and asserts its dominance, Pompliano concluded by suggesting that naysayers may eventually come to realise their errors. However, in a rapidly evolving market, Tether’s resounding success stands as a testament to the transformative power of blockchain technology, solving real-world problems and reshaping the financial landscape on a global scale.
Originating in 2014, Tether emerged as a groundbreaking blockchain platform, revolutionising the utilisation of fiat currencies in the digital realm. Departing from the traditional financial system, Tether adopts a contemporary approach to redefine the dynamics of currency. Its innovation lies in enabling users to engage in transactions with conventional currencies on the blockchain, mitigating the usual volatility and intricacies associated with digital currencies. Pioneering the digital integration of traditional currencies, Tether serves as a catalyst in democratising cross-border transactions across the blockchain.
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