Multicoin Capital co-founder: Tether's $500 billion valuation corresponds to a 77 times price-to-earnings ratio, and the emerging markets are its advantage

ChainCatcher news, Multicoin Capital co-founder Tushar Jain commented on "Tether is raising $20 billion at a $500 billion valuation." Given the expected interest rate cuts by the Federal Reserve, the market anticipates an average interest rate of about 3.6% over the next year, which implies Tether's revenue would be $600 million. This corresponds to a price-to-earnings ratio of about 77 times. However, factors such as the interest rate cut cycle and increasing competitive pressure are bound to threaten Tether's revenue sustainability. Nevertheless, Tether enjoys high brand loyalty in developing countries. These users are less likely to switch to higher-yielding stablecoins. Tether is continuously committed to expanding in these countries.