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Unless a significant portion of the tether are converted to real dollars it wouldn't prove much. I'm sure bitfinex/tether are not completely broke and can affor
by simias 9y ago
Unless a significant portion of the tether are converted to real dollars it wouldn't prove much. I'm sure bitfinex/tether are not completely broke and can afford to pay a few million of dollars easily. The only way we'll know for sure if they have the money is if somebody manages to get hold of their real financial info or if there's a bank run and they end up having to redeem a significant portion of the USDT they've emitted.
As far as I understand the current conditions for retrieving the real dollars from tether/bitfinex are dissuasive enough that most people won't bother doing that, so they just need to have enough liquidity to pay the small portion that will.