Tether Now Holds Over $5 Billion Worth of Bitcoin to Back USDT (But Should It?)

Discussion in 'Crypto Assets' started by schizo, Apr 1, 2024.

  1. orbit23

    orbit23

    unironically the truth. The only difference being they don't have the authority to do so.
     
    #11     Apr 2, 2024
  2. completely wrong. Tether and other stables are not backed by just Fiat aka cash. They are backed by assets like treasury bills, and other assets
     
    #12     Apr 2, 2024
    johnarb likes this.

  3. This is 100% wrong. Maybe just do a little googling before you talk about what you heard.

    The vast majority of tether is back by treasury bills, and other short term obligations like money market funds. This can actually be seen on their website if you just go and look. The amount of bitcoin compared to the other assets is very small. Plus, they also have gold and other precious metals which nobody seems to be talking about here. I don’t think you understand this at all
     
    #13     Apr 2, 2024
    johnarb likes this.


  4. you are completely clueless. Tether never said they are backed by dollars. They are backed by assets. Being able to sell the assets to produce dollars if somebody redeems is different than actually holding dollars. Think about it like a bank, when you have a bank deposit they don’t just hold cash for you. They typically make loans or buy bonds with that money and earn the spread. Tether does the same thing.

    The confidence to just spout off shit without knowing anything about this business is honestly rather amazing.
     
    #14     Apr 2, 2024
  5. traider

    traider

    However, the CFTC determined that at least from June 1, 2016 through Feb. 25, 2019, Tether misrepresented to customers and the market that it maintained sufficient U.S. dollar reserves to back every Tether token in circulation with the equivalent amount of “corresponding fiat currency.

    The agency also found that Tether failed to disclose that it included unsecured receivables and non-fiat assets in its reserves, and that the company falsely represented it would undergo regular audits to prove it was maintaining the fiat currency reserves it needed to back Tether tokens.
     
    #15     Apr 2, 2024
  6. ph1l

    ph1l

    Last edited: Apr 2, 2024
    #16     Apr 2, 2024
  7. #17     Apr 2, 2024
  8. You think. But since they're not audited, there's no good reason to believe it.
    Even companies with audited financials get busted cheating (wirecard).
    Without audits, you'd be a total sucker to buy what they're selling.
     
    #18     Apr 2, 2024
  9. yawn. Nobody buys and holds tether it’s just a stable coin used between crypto transactions. But go ahead and keep letting your doubt stop you from bitcoins historically great returns. You are really killing it.
     
    #19     Apr 2, 2024
    johnarb likes this.
  10. ph1l

    ph1l

    Well, ... almost nobody
    ;)
     
    #20     Apr 2, 2024