Tether: Deutsche Bank's analysis of Tether lacks clarity and substantive evidence

In a May 7 research note on stablecoins, Deutsche Bank's study of 334 pegged currencies, analysts found that 49 percent of stablecoins failed during their median lifespan of about eight to ten years. Analysts concluded that most of the pegged assets in the cryptocurrency space will experience significant "turbulence" fueled by speculative sentiment and eventually suffer some sort of decoupling event. Deutsche Bank analysts also pointed to the lack of transparency around Tether's reserves and called the company's solvency position "questionable.
In response, Tether lashed out at the Deutsche Bank report, saying it lacked clarity and substantive evidence, and relied on vague assertions rather than rigorous analysis. A Tether spokesperson said that while the report attempted to predict the decline of stablecoins, it failed to provide concrete data to support its claims. Additionally, comparing it to the algorithmic stablecoin Terra is misleading and irrelevant to the discussion of reserve-backed tokens.