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I'm by no means an expert, but I'm wondering why the people responsible behind Tether do this? Why don't they ask people for a dollar for each Tether coin and t
by dom96 9y ago
I'm by no means an expert, but I'm wondering why the people responsible behind Tether do this? Why don't they ask people for a dollar for each Tether coin and then store those dollars indefinitely, wouldn't that guarantee that the currency is pegged? They would always be able to exchange the Tether back to a dollar.
- Nursie 9y ago>> Why don't they ask people for a dollar for each Tether coin AFAICT they cannot bank in dollars at the moment, which is where the origins of the tether currency lie in the first place. They say that theey have the money to back it... but given they minted a quarter billion over the last three days seems a little less than credible.
- PeterisP 9y agoWell, someone might do what you describe - or, instead, they might say that they will store those dollars indefinitely but actually spend them. Why should they care about being always able to exchange the Tether back to a dollar, when they can simply take the cash instead?
- jonknee 9y agoIt turns out to be a lot more profitable if you just make USDT out of thin air...
- rednerrus 9y agoIt also drives the price of BTC up if you use those imaginary USDT to wash trade BTC. This is beyond a shitshow.
- lmm 9y ago> Why don't they ask people for a dollar for each Tether coin and then store those dollars indefinitely, wouldn't that guarantee that the currency is pegged? They would always be able to exchange the Tether back to a dollar. They could do that, but why would they when they can instead ask people for a dollar for each Tether coin and then spend those dollars on crack and hookers?
- empath75 9y agoThey don’t have any access to banking.