5 ms·

Plenty of companies redeem USDT for USD. I myself worked at a company that redeemed billions of dollars. The FUD on HN is approaching delusional levels.

xur17 6y ago
https://tether.to/faqs/ https://tether.to/faqs/ > Unfortunately, Tether has decided to stop serving U.S. individual and corporate customers altogether. As of January 1, 2018, no issuance or redeeming services will be available to these users. Exceptions to these provisions may be made by Tether, in its sole discretion, for entities that are: Established or organized outside of the United States or its territorial or insular possessions; and, Eligible Contract Participants pursuant to U.S. law. > An Eligible Contract Participant includes a corporation that has total assets exceeding $10,000,000 and is incorporated in a jurisdiction outside of the United States or its territories or insular possessions. This will be the principal basis upon which we will continue to do business with selected U.S. persons. Basically, it looks like they only provide on and off ramps for large clients outside the US. Given their history, I am betting they might not want to reveal where they store their assets, and don't want to deal with US regulators (but not sure this is working).
- seibelj 6y ago
  Yes, I worked at a company that had an entity outside the US that minted and redeemed tethers. This is how it works.
- whimsicalism 6y ago
  So as source for the claim that you "can't redeem tether", you are linking to something that says you can redeem tether?
  - xur17 6y ago
    When did I say I was providing a source for not being able to redeem tether? I'm just linking to information that I found useful when forming an opinion on the matter.
  - FabHK 6y ago
    > something that says you can redeem tether Tether, in its sole discretion, may choose to redeem tether, as long as you're a corporation with over 10m USDT incorporated outside the US. I'd say that's not an ironclad guarantee that you can redeem tether.
  - cool_dude85 6y ago
    Tell you what: you give me $100, I'll give you back a cooldude coupon. I have sole discretion as to whether I'll redeem this coupon when you hand it back to me. Question: Would you say you can redeem this coupon? It's possible I might decide to give you back your money, after all.
miracle2k 6y ago
And what does the company do with those USDT? If the money printing theory is correct, companies like yours would be the ones counteracting any sell-pressure on USDT. If the theory is not correct, companies like yours would see an at least equal buy-side demand for USDT, bringing real USD into the system. I mean, does the company hold (increasingly?) large USDT positions on their balance sheet (and would therefore be the ones in the hole if Tether loses the peg), or is the company able to get actual dollars out of Tether inc. in exchange for those tokens?
- seibelj 6y ago
  I worked at Circle 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...
  - microtherion 6y ago
    That article was published in December 2019, when $4B of Tether had been issued in total, and covers an unspecified earlier period. Are you sure that the $20B of Tether issued since then have an identical origin story?

xur17 6y ago

https://tether.to/faqs/ https://tether.to/faqs/ > Unfortunately, Tether has decided to stop serving U.S. individual and corporate customers altogether. As of January 1, 2018, no issuance or redeeming services will be available to these users. Exceptions to these provisions may be made by Tether, in its sole discretion, for entities that are: Established or organized outside of the United States or its territorial or insular possessions; and, Eligible Contract Participants pursuant to U.S. law. > An Eligible Contract Participant includes a corporation that has total assets exceeding $10,000,000 and is incorporated in a jurisdiction outside of the United States or its territories or insular possessions. This will be the principal basis upon which we will continue to do business with selected U.S. persons. Basically, it looks like they only provide on and off ramps for large clients outside the US. Given their history, I am betting they might not want to reveal where they store their assets, and don't want to deal with US regulators (but not sure this is working).

seibelj 6y ago
Yes, I worked at a company that had an entity outside the US that minted and redeemed tethers. This is how it works.
whimsicalism 6y ago
So as source for the claim that you "can't redeem tether", you are linking to something that says you can redeem tether?
- xur17 6y ago
  When did I say I was providing a source for not being able to redeem tether? I'm just linking to information that I found useful when forming an opinion on the matter.
- FabHK 6y ago
  > something that says you can redeem tether Tether, in its sole discretion, may choose to redeem tether, as long as you're a corporation with over 10m USDT incorporated outside the US. I'd say that's not an ironclad guarantee that you can redeem tether.
- cool_dude85 6y ago
  Tell you what: you give me $100, I'll give you back a cooldude coupon. I have sole discretion as to whether I'll redeem this coupon when you hand it back to me. Question: Would you say you can redeem this coupon? It's possible I might decide to give you back your money, after all.

miracle2k 6y ago

And what does the company do with those USDT? If the money printing theory is correct, companies like yours would be the ones counteracting any sell-pressure on USDT. If the theory is not correct, companies like yours would see an at least equal buy-side demand for USDT, bringing real USD into the system. I mean, does the company hold (increasingly?) large USDT positions on their balance sheet (and would therefore be the ones in the hole if Tether loses the peg), or is the company able to get actual dollars out of Tether inc. in exchange for those tokens?

seibelj 6y ago
I worked at Circle 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...
- microtherion 6y ago
  That article was published in December 2019, when $4B of Tether had been issued in total, and covers an unspecified earlier period. Are you sure that the $20B of Tether issued since then have an identical origin story?