Arthur Hayes: If Tether holds assets with poor liquidity, an unexpected event could raise questions about over-collateralization.

On December 1st, in response to Tether CEO Paolo Ardoino revealing that the company holds U.S. Treasury bonds that can generate approximately $500 million in profits each month, Arthur Hayes posted on the X platform stating that Tether's profits are high, but it is uncertain whether there is a specific Dividend policy or if target over-collateralization rates are set based on asset types and their Fluctuation. “If Tether's liabilities are in USD and its assets are U.S. Treasury bonds, then there basically isn't much of an issue; however, if Tether's assets are illiquid private investments, then in the event of an unexpected occurrence, the market will be skeptical of Tether's over-collateralization.”