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Tether’s total supply didn’t exceed 2B at any point in 2017 or 2018 and it certainly didn’t fluctuate by anywhere close to that, particularly on the down side,

Tether’s total supply didn’t exceed 2B at any point in 2017 or 2018 and it certainly didn’t fluctuate by anywhere close to that, particularly on the down side, during that period. I think either your dates are wrong or you’ve vastly overstated how much Tether Circle “redeemed” (please explain exactly the redemption process you used) over that period.

seibelj 6y ago
https://www.theblockcrypto.com/post/48857/former-head-of-circle-otc-says-theres-more-to-the-tether-narrative https://www.theblockcrypto.com/post/48857/former-head-of-cir... I worked with Dan. Circle Trade was the second biggest desk back then after Cumberland. You don’t do all billions at once, that was in total.
- freeAgent 6y ago
  Yes, I recognized the language from that article/interview. It did not explain how Tether was redeemed by Circle. That interview did not cover in any detail how much Tether was redeemed or how Tether was wiring millions or billions of USD to Circle. I want to be very clear here that selling USDT is not the same as redeeming it directly with Tether themselves.
  - seibelj 6y ago
    You are asking for the actual nuts and bolts? Everything is accomplished over telegram in the crypto space, including OTC trades. Circle had entities throughout the world and offshore bank accounts with those entities. You would ping Tether on telegram and say you want to swap USD for USDT or vice versa and wire transfer details would happen. It isn’t rocket science. I don’t know the exact amount but we had pretty transparent internal disclosure of the business and what each unit made in profit / loss, and what he said rang true for me. Circle Trade did something like $25 billion in OTC trades in 2018.
    - freeAgent 6y ago
      In other words, you were trading Tether OTC for cash and other assets, not redeeming it: https://tether.to/redeem-tethers-to-bank-account/ https://tether.to/redeem-tethers-to-bank-account/

seibelj 6y ago

https://www.theblockcrypto.com/post/48857/former-head-of-circle-otc-says-theres-more-to-the-tether-narrative https://www.theblockcrypto.com/post/48857/former-head-of-cir... I worked with Dan. Circle Trade was the second biggest desk back then after Cumberland. You don’t do all billions at once, that was in total.

freeAgent 6y ago
Yes, I recognized the language from that article/interview. It did not explain how Tether was redeemed by Circle. That interview did not cover in any detail how much Tether was redeemed or how Tether was wiring millions or billions of USD to Circle. I want to be very clear here that selling USDT is not the same as redeeming it directly with Tether themselves.
- seibelj 6y ago
  You are asking for the actual nuts and bolts? Everything is accomplished over telegram in the crypto space, including OTC trades. Circle had entities throughout the world and offshore bank accounts with those entities. You would ping Tether on telegram and say you want to swap USD for USDT or vice versa and wire transfer details would happen. It isn’t rocket science. I don’t know the exact amount but we had pretty transparent internal disclosure of the business and what each unit made in profit / loss, and what he said rang true for me. Circle Trade did something like $25 billion in OTC trades in 2018.
  - freeAgent 6y ago
    In other words, you were trading Tether OTC for cash and other assets, not redeeming it: https://tether.to/redeem-tethers-to-bank-account/ https://tether.to/redeem-tethers-to-bank-account/