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Except there was no faked value injected anywhere, all tethers are 100% backed by USD in the bank. The reports are fake news. If it were not so, the freely trad
by mD5pPxMcS6fVWKE 6y ago
Except there was no faked value injected anywhere, all tethers are 100% backed by USD in the bank. The reports are fake news. If it were not so, the freely traded tether/USD value would be below 1, but it isn't, it's traded at exactly 1.
- skohan 6y agoThis is extremely flawed reasoning, and I'm sad to see a comment of this low quality on HN. Tether's valuation is based on the assumption that it's backed by real currency. They even removed the promise that their cash stores are audited from the website FAQ: https://cryptocoinspy.com/tether-usdt-has-removed-its-auditing-promise-from-its-faq/ https://cryptocoinspy.com/tether-usdt-has-removed-its-auditi...
- mD5pPxMcS6fVWKE 6y agoThis is extremely flawed reasoning, and I'm sad to see a comment of this low quality on HN. Tether's valuation is based on free market trade. If an insider knew they are not 100% backed, he has a billion dollars incentive to short the trade and then drop the bomb. However that has not happened.