3 ms·

If there is a USD to USDT match, where are the audits?

gruez 6y ago
Is that relevant? I'm not arguing against the claims that tether is shady, I'm only arguing against the outrageous claims that you can't convert USDT back to USD that some tether opponents claim.
- jVinc 6y ago
  Well ofcause you can. A pyramid scheme keeps paying out profits to the chumps right up to the point when it doesn't. The argument here isn't that Tether has no cash on hand, it's that if enough people pull out, they hit the the bottom of the non 1:1 reserve and everyone else left holding will zero out. If you have 1 kg of gold and start selling papers giving people claim to that 1kg of gold, nothing will prevent you from seeling 1000 claims, making it seem like you're holding a ton of gold for people when looking at the market cap, but if 2 people come and ask you for their 1kg of gold and you don't have enough of the cash you got seeling claims on hand and an oppotunity to buy gold quickly, then from one day to the next 999 claims are worthless. This is of cause not a big risk in the industry normally because markets are regulated and those who hold gold or other assets backing claims go through audits. Naturally Tether can't go through an honest audit because even though they might be holding enough cash to cover a decent amount of the market, it would expose them for lying over time, which would still hurt their business tremendously.
  - gruez 6y ago
    You seem to be spending 3 paragraphs re-arguing that tether is shady, when I already said that wasn't the point I was arguing. A argument in favor of tether shouldn't be taken as a sign that I support them wholeheartedly.
- TomSwirly 6y ago
  > Is that relevant? Of course it's relevant. If there are no actual reserves, the whole thing is a scam and certain to collapse sooner or later.
  - gruez 6y ago
    >I'm only arguing against the outrageous claims that you can't convert USDT back to USD

Is that relevant? I'm not arguing against the claims that tether is shady, I'm only arguing against the outrageous claims that you can't convert USDT back to USD that some tether opponents claim.

jVinc 6y ago
Well ofcause you can. A pyramid scheme keeps paying out profits to the chumps right up to the point when it doesn't. The argument here isn't that Tether has no cash on hand, it's that if enough people pull out, they hit the the bottom of the non 1:1 reserve and everyone else left holding will zero out. If you have 1 kg of gold and start selling papers giving people claim to that 1kg of gold, nothing will prevent you from seeling 1000 claims, making it seem like you're holding a ton of gold for people when looking at the market cap, but if 2 people come and ask you for their 1kg of gold and you don't have enough of the cash you got seeling claims on hand and an oppotunity to buy gold quickly, then from one day to the next 999 claims are worthless. This is of cause not a big risk in the industry normally because markets are regulated and those who hold gold or other assets backing claims go through audits. Naturally Tether can't go through an honest audit because even though they might be holding enough cash to cover a decent amount of the market, it would expose them for lying over time, which would still hurt their business tremendously.
- gruez 6y ago
  You seem to be spending 3 paragraphs re-arguing that tether is shady, when I already said that wasn't the point I was arguing. A argument in favor of tether shouldn't be taken as a sign that I support them wholeheartedly.
TomSwirly 6y ago
> Is that relevant? Of course it's relevant. If there are no actual reserves, the whole thing is a scam and certain to collapse sooner or later.
- gruez 6y ago
  >I'm only arguing against the outrageous claims that you can't convert USDT back to USD