Quick Take:

• Tether’s new asset, Alloy, might just be ‘fool’s gold’, backed by a grand total of 0kg of gold!
• While Tether’s treasury sounds more like King Midas’s vault, their new Alloy asset starts off surprisingly light – on actual gold, that is.

Yello ParadiseSquad! Are you aware of the potential risks as Tether’s latest asset, Alloy, hits the market with no gold backing despite promises?

Tether’s Golden Gamble: A New Asset with No Gold (Yet)

In a move that might raise eyebrows as much as it does questions, Tether has rolled out a new asset named Alloy, which, despite its shiny promise, currently boasts a gold backing of exactly zero kilograms. That’s right, it’s all the glitter without the gold, at least for now.

A Touch of Midas, Sans the Gold

Alloy emerges into the Tether universe as a smart contract-issued asset, ambitiously over-collateralized and pegged to Tether Gold, another of the firm’s golden ventures, albeit one that actually involves some of the precious metal. For those diving into Alloy, there’s a catch: if your minted tokens exceed 75% of your deposited gold’s value, prepare to see your holdings liquidated by the unblinking eye of the smart contract.

Gold-Backed, Sort of

Tether isn’t new to the gold game. Their Tether Gold, and even the good old USDT, supposedly rest on a bedrock of gold bars snug in Swiss vaults. The most recent checks show a treasure trove worth over $3.6 billion in “precious metals” backing USDT, a stash seven times the hoard earmarked for Tether Gold.

A Mixed Bag of Backings

Tether’s financial alchemy doesn’t stop at just one or two assets. From Mexican Pesos to offshore Yuan and Euros, several of their stablecoins share the golden backup. Alloy marks the sixth entrant in this metallic saga, promising an “open platform” for future assets backed by a miscellany of, well, other assets, including those bearing yields.

Beware of Fools Rushing for Gold

In a twist that would make any modern Midas wary, Tether’s chief, Paolo Ardoino, has hit the social media circuits not to herald an airdrop but to caution against fake ones sprouting up. Meanwhile, the Alloy page itself presents a stark picture: a market cap shy of four dollars and not a gram of gold in sight.

As Tether attempts to expand its empire of digital assets, the community watches, perhaps with a mix of intrigue and skepticism to see if Alloy will indeed turn to gold or remain an ambitious idea waiting for its real golden hour.