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Honestly, 74% is a much higher number than I was expecting.
by eindiran 8y ago
Honestly, 74% is a much higher number than I was expecting.
- mikeyouse 8y agoConveniently enough, it works out that they're about $740 million short of their obligations. That's a lot of money.
- xmly 8y agoDitto this. I thought it would be like less than 50%
- elyobo 8y agoIf 74% is what Tether is claiming, then the reality is probably less.
- village-idiot 8y agoThey’re claiming 74% “cash and cash like securities”, which is one hell of a caveat. We know that they’ve “loaned” 900m to Bitfinex, a company run by the same people as Tether. My bet is that some of those “cash like securities” are unrecoverable “loans”.
- Scoundreller 8y agoI was reading through Apple’s 10K, and they define cash like securities as being highly liquid and having a maturity in less than 3 months.
- askafriend 8y agoApple shouldn't have to suffer the horrible fate of being even implied in the same conversation as Tether/Bitfinix as far as reporting standards and corporate trust go.
- gpresot 8y agoCash-like (or cash-equivalent) securities is a common expression in accounting and indicates highly liquid securities that can be liquidated in short term (less than 3 months usually). "These securities have a low-risk, low-return profile and include U.S. government Treasury bills, bank certificates of deposit, bankers' acceptances, corporate commercial paper and other money market instruments" (from Investopedia).
- village-idiot 8y agoI know, I just think they would lie about it. It’s not like they have had any qualms about lying continually.
- e_tm_ 8y agoThis is assuming that the stated 74% number is true. Fool me once...
- saalweachter 8y agoIf it's a fake number, it's an interesting choice. They aren't claiming to be 99% or 90% backed, which would be similarly disbelieved by the same people who disbelieved the 100% claim.
- jeremyjh 8y agoSuppose the real number is 3%. 74% sounds pretty good as a way to soften the blow a bit. It would be best to let the air out over a matter of weeks than minutes.
- saalweachter 8y agoI feel like there could be a lot of real numbers that are much bigger than 3% but still devastatingly low. 10%? 30%? 45%? Also, do they break down the composition of that backing between "cash" and "short-term securities" anywhere, and how many of those "short-term securities" are real assets like T-bills, and how many are unsecured debt that there isn't the money to repay? 74% could be a "real" number ... but it could still be the case that there is only cash to cover 10% of the existing Tethers, and the remaining 64% is loans to companies that can only repay that ten cents on the dollar.
- deleted 8y ago[deleted]
- empath75 8y agoThey’ve been lying for years and are only admitting they’re not fully backed now because they got caught. Who knows how much they’re really missing.
- smoovb 8y agoGlad it's been brought to light, but does seem to be a problem that is solve-able.