How does Tether generate profits in the cryptocurrency industry?

1 answers

• Apr 07, 2022 · 3 years ago
  Tether, a popular stablecoin, generates profits in the cryptocurrency industry through a combination of transaction fees, investments, and lending activities. Every time someone uses Tether for transactions, a small fee is charged. This fee, although small per transaction, can accumulate to a significant amount due to the high volume of Tether transactions. Additionally, Tether invests the funds held in reserve, aiming to generate returns through various investment strategies. These investments can include low-risk assets like government bonds. Lastly, Tether may engage in lending activities, providing loans to other market participants and earning interest on those loans. These revenue streams contribute to Tether's profitability and success in the cryptocurrency industry.
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