Will USDT Crash to Zero? One Analyst Predicts USDT’s Demise

• Tether’s alleged lack of audits, delistings on EU exchanges, and the minting of new tokens are the primary reasons
• Its Q1 2025 report claims $115 billion in Treasuries plus $5.6 billion in excess reserves, but no certified auditor has verified this line-by-line
• Tether refused to comply with MiCA, so Binance, Kraken, and other exchanges delisted USDT in Europe

A recent social media post from Chain Mind raises concerns that USDT (Tether) could follow UST to $0, pointing to Tether’s alleged lack of audits, delistings on EU exchanges, and the minting of new tokens. The post is also accompanied by the image depicting a hypothetical crash of Tether from $1 to near $0, drawing parallels to the 2022 TerraUSD (UST) collapse, where UST lost its $1 peg due to insufficient reserves.

The core concerns

Several reasons were mentioned on why this might happen. For starters, Tether frequently mints large batches of USDT (marked authorized but not issued), which are effectively ready for circulation but not yet in the market. Just this month, Tether minted $2 billion in new USDT on TRON.

While the platform says this is routine inventory management, skeptics see it as pos…

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