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For a crowd that constantly parrot “DYOR”...you should really DYOR. No stablecoin has even been audited. Zero. None. Most perform attestations, which doesn’t
by qeternity 6y ago
For a crowd that constantly parrot “DYOR”...you should really DYOR.
No stablecoin has even been audited. Zero. None.
Most perform attestations, which doesn’t even come close to an audit.
Tether does neither.
- LAMike 6y agohttps://news.ycombinator.com/item?id=17847022 https://news.ycombinator.com/item?id=17847022 HFSP
- matheusmoreira 6y agohttps://www.paxos.com/attestations/ https://www.paxos.com/attestations/ > Paxos Trust Company has engaged Withum, a nationally top-ranking auditing firm, to independently verify at specific points in time that the entire supply of Paxos Standard tokens is consistent with USD in reserve accounts at U.S. banks held and managed by Paxos. > Withum performs month-end attestations of these accounts using standards established by the AICPA. An independent third party verifies and attests to the fact reserves match supply every month. Looks fine to me.
- qeternity 6y agoYep, I get that it looks fine to you. That’s because you don’t understand the difference. That was the whole point of my comment. You spend 5 seconds googling and say “yep, good enough for me”. This is the crypto world.
- matheusmoreira 6y agoI started trading about 2 weeks ago. I researched enough to know I should avoid USDT. I see no reason to doubt BUSD at this time. Are you going to explain what's wrong with the attestation?
- qeternity 6y agoAn attestation basically says that we’ve verified that your bank says you have $X in your account. Deltec, Tether’s bank, is owned by Tether. So it’s worthless. But attestations tell you nothing about solvency. Let’s say I need to show $1k in my bank account. So I go to a loan shark. I can now get an attestation that I have $1k. It’s true, I do...but I also owe $1k. Attestations are not audits.
- graeme 6y agoIndeed. I had to get an attestation of revenues for a visa. I provided my accountants with an excel. They produced a statement to the effect that “To the best of our knowledge the client’s excel sheet says what the client says it says” For the Paxos attestations, Paxos merely needs the money in an account at specific points in time.
- matheusmoreira 6y agoThanks, I understand now. Hopefully Binance and Paxos will start auditing BUSD reserves one day.
- qeternity 6y agoAvoiding USDT won’t help you. A tremendous piece of the current BTC price is fueled by USDT because its currently trades at 1:1 with the USD. This then provides the leg to every other stablecoin and fiat currency. But if you take that away, the whole party stops. Exchanges can’t afford BTC sub $10k anymore. There is no hiding from Tether. They have co-opted the system.
- gruez 6y ago>No stablecoin has even been audited. Zero. None. https://www.gemini.com/dollar https://www.gemini.com/dollar scroll down to the bottom. there were monthly audits dating back to sept 2018.
- graeme 6y agoThose aren’t audits, those are attestations. The Gemini page says “audit”. But that isn’t what the pdfs say. Read the accountant’s writing very carefully and you’ll see it means they merely examined management’s report and their assertion that at a specific time at 3:44 pm feb 26th they had the money. https://assets.ctfassets.net/jg6lo9a2ukvr/1Qg69anSKlBi3FbFA44wfo/84434101e43bafed299f28b59f1c0451/Gemini_Dollar_Examination_Report_02-26-21.pdf https://assets.ctfassets.net/jg6lo9a2ukvr/1Qg69anSKlBi3FbFA4...
- gruez 6y agoPractically speaking, what's the difference between an attestations and an audit?
- sfblah 6y agoMy understanding is an attestation is the company promising something is true (not sure if there are consequences if they lie). An audit is a third party promising something is true, with definite legal consequences if they lie.
- mlcrypto 6y agoTether fearmongers can't see the forest for the trees. They see printed tethers and see BTC going up. But they never stop to think maybe they are just keeping up with the federal reserve currency that keeps being printed
- intotheabyss 6y agoI take it you've never heard of Maker? You can audit the supply of DAI and the ETH backing it in real time.
- graeme 6y agoFrom context I’m assuming OP was talking about USD backed stablecoins. That said, DAI is an interesting case in that it is now mostly backed by centralized assets rather than ETH. I do not believe it is within the capacity of the average user to audit such a system. It would be simple for an average person to examine a USD account balance and say “yes the money is there”. But how can anyone figure all the possible tail events that could occur from DAI’s structure? https://webcache.googleusercontent.com/search?q=cache:Cb0cMy7JuRgJ:https://insights.deribit.com/market-research/dai-is-now-60-backed-by-centralized-assets-what-does-that-mean/+&cd=3&hl=en&ct=clnk&gl=ca https://webcache.googleusercontent.com/search?q=cache:Cb0cMy... https://medium.com/@adamscochran/3-reasons-why-dai-is-defis-biggest-risk-64f1bc7e6109 https://medium.com/@adamscochran/3-reasons-why-dai-is-defis-...