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> But it seems unfair to hold Tether up to a higher standard than even our most established banks. I'm not sure it is. Tether states on their homepage: > Ever

by mjlee 7y ago

> But it seems unfair to hold Tether up to a higher standard than even our most established banks. I'm not sure it is. Tether states on their homepage: > Every tether is always 100% backed by our reserves So in this case, they're being held to a standard they have set for themselves.

dmix 7y ago
When they failed to provide an audit and establish a relationship with a reliable bank, this statement became pointless. This was the only public "proof" Tether provided: https://cdn-images-1.medium.com/max/1250/1*CMifyYT4dLVdDDPRSwP64Q.jpeg https://cdn-images-1.medium.com/max/1250/1*CMifyYT4dLVdDDPRS... It was signed with a scribble, without even a name underneath, and provides no details. The bank is based in the Bahamas and stopped responding to press questions about their relationship with Tether as well. Whether it's crypto or a traditional bank, what matter's most is that it's set up in a legitimate way with transparent layers of responsibility and trust. A good example is how TrueUSD "stablecoin" provide's monthly statements with a reputable western auditor who is backing each report's findings. Tether should have been doing this since day 1. At a minimum.
- stordoff 7y ago
  > stopped responding to press questions about their relationship with Tether as well Would you expect a bank to answer questions about who it does business with?
  - dmix 7y ago
    Yes, you're right they should respect privacy. But in this case Tether initiated it by claiming they had a relationship with the bank and clearly asked them for a letter stating such a fact. But still the bank "declined to confirm the information in the letter to reporters". > Tether, which has faced questions about whether it actually backs its popular namesake digital coins with dollars as it claims, released a letter attributed to Deltec Thursday that said the company has an account with the bank. Deltec spokeswoman Melanie Hutcheson, reached by phone Friday, declined to confirm or deny whether that’s true. https://www.bloomberg.com/news/articles/2018-11-02/bank-tied-to-tether-goes-quiet-on-relationship-with-crypto-firm https://www.bloomberg.com/news/articles/2018-11-02/bank-tied... That combined with the wording of the letter and the squiggle signature just makes this whole thing sketchy.

by mjlee 7y ago

dmix 7y ago

When they failed to provide an audit and establish a relationship with a reliable bank, this statement became pointless. This was the only public "proof" Tether provided: https://cdn-images-1.medium.com/max/1250/1*CMifyYT4dLVdDDPRSwP64Q.jpeg https://cdn-images-1.medium.com/max/1250/1*CMifyYT4dLVdDDPRS... It was signed with a scribble, without even a name underneath, and provides no details. The bank is based in the Bahamas and stopped responding to press questions about their relationship with Tether as well. Whether it's crypto or a traditional bank, what matter's most is that it's set up in a legitimate way with transparent layers of responsibility and trust. A good example is how TrueUSD "stablecoin" provide's monthly statements with a reputable western auditor who is backing each report's findings. Tether should have been doing this since day 1. At a minimum.

stordoff 7y ago
> stopped responding to press questions about their relationship with Tether as well Would you expect a bank to answer questions about who it does business with?
- dmix 7y ago
  Yes, you're right they should respect privacy. But in this case Tether initiated it by claiming they had a relationship with the bank and clearly asked them for a letter stating such a fact. But still the bank "declined to confirm the information in the letter to reporters". > Tether, which has faced questions about whether it actually backs its popular namesake digital coins with dollars as it claims, released a letter attributed to Deltec Thursday that said the company has an account with the bank. Deltec spokeswoman Melanie Hutcheson, reached by phone Friday, declined to confirm or deny whether that’s true. https://www.bloomberg.com/news/articles/2018-11-02/bank-tied-to-tether-goes-quiet-on-relationship-with-crypto-firm https://www.bloomberg.com/news/articles/2018-11-02/bank-tied... That combined with the wording of the letter and the squiggle signature just makes this whole thing sketchy.