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It's a different set of tradeoffs compared to Tether. You gain the risk of insolvency, but you lose the risk of corruption.
by jstanley 9y ago
It's a different set of tradeoffs compared to Tether.
You gain the risk of insolvency, but you lose the risk of corruption.
- wslh 9y agoAre you saying this to the average "non-professional" investor? When people read about a cryptocurrency that represents fiat money they think about something simple and they assume you have the money to convert back and forth. The first page clearly says "A decentralized cryptocurrency pegged the U.S. dollar". This message is a scam, plain scam, you don't need to bring the SEC to realized that. After reviewing all this thread I flagged the top comment.
- jstanley 9y agoI'm not saying it to any investor, I'm arguing it from a purely disinterested perspective. I think it's a fascinating project. That the SEC thinks risk of insolvency is more of a problem than risk of corruption is irrelevant.
- lurker456 9y agowords have meaning. "pegged" is a wrong and highly misleading term because it implies a level of safety that is not there. Whether it's fraudulently so is indeed a question for the courts and the SEC.
- hathathat 9y agoNot even central banks can provide the guarantee you’re looking for - they can only print money to devalue their currency, but they can’t make it appreciate [1]! [1] https://en.m.wikipedia.org/wiki/Black_Wednesday https://en.m.wikipedia.org/wiki/Black_Wednesday