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An 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
by qeternity 6y ago
An 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.