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You didn't even read the tweet. The issue being mentioned is that the backing reserves _do not exist_.

vmception 5y ago
So what, all Tether cannot be redeemed at once, like every other asset in existence. The market obviously tolerates that with the entire bankng sector, with the entire gold surrogate sector. Tether’s disclosures says they are not backed with dollars one to one, and some irrelevant portion of their audience cares. Tether simply hasnt given their own audit at the same standard of banks or ETFs, everyone knows what they're getting into. The irony isnt lost on anyone that the crypto market has systemic risks from leverage and rehypothecation, but also its like every other market and will function for hundreds of years then and have some spectacular busts on occasion. Not different enough for me to care about singling it out. Did I cover all the bases for you or did I miss anything?
- Daishiman 5y ago
  Yeah, those were not the original claims of Tether. At all. They kept moving goalposts to the point where any perceived advantage to traditional finance is non-existent. A shady company in a shady jurisdiction, that time and time again refuses to show transparency in their books, moving goalposts, with a use case that at best works to appease day traders and at worst is just a vehicle for manufactured crypto spending and money laundering. Truly inspiring and revolutionary.
  - vmception 5y ago
    The only thing the NYAG revealed is that Tether was backed one to one before 2018. They moved on them as soon as it wasnt true. People thought it wasnt true for all of Tether’s existence including years before 2018. I’m glad there are alternatives, at this point I don't really care as like I said: its merely ironic that the crypto market has the debt and leverage of the traditional markets having been made as a response to the debt and leverage. Just chuckle and move on, thats the entire response applicable. The only activism would be about wishing for more transparency, and routine third party audits, but there are alternatives. It isnt controversial to me that it could shake confidence in the market in a Tether redemption liquidity crisis. Its just not different enough. Stage 5: acceptance.
  - user-the-name 5y ago
    Not just "moving goalposts", outright lying. They have lied directly and repeatedly about their reserves.

So what, all Tether cannot be redeemed at once, like every other asset in existence. The market obviously tolerates that with the entire bankng sector, with the entire gold surrogate sector. Tether’s disclosures says they are not backed with dollars one to one, and some irrelevant portion of their audience cares. Tether simply hasnt given their own audit at the same standard of banks or ETFs, everyone knows what they're getting into. The irony isnt lost on anyone that the crypto market has systemic risks from leverage and rehypothecation, but also its like every other market and will function for hundreds of years then and have some spectacular busts on occasion. Not different enough for me to care about singling it out. Did I cover all the bases for you or did I miss anything?

Daishiman 5y ago
Yeah, those were not the original claims of Tether. At all. They kept moving goalposts to the point where any perceived advantage to traditional finance is non-existent. A shady company in a shady jurisdiction, that time and time again refuses to show transparency in their books, moving goalposts, with a use case that at best works to appease day traders and at worst is just a vehicle for manufactured crypto spending and money laundering. Truly inspiring and revolutionary.
- vmception 5y ago
  The only thing the NYAG revealed is that Tether was backed one to one before 2018. They moved on them as soon as it wasnt true. People thought it wasnt true for all of Tether’s existence including years before 2018. I’m glad there are alternatives, at this point I don't really care as like I said: its merely ironic that the crypto market has the debt and leverage of the traditional markets having been made as a response to the debt and leverage. Just chuckle and move on, thats the entire response applicable. The only activism would be about wishing for more transparency, and routine third party audits, but there are alternatives. It isnt controversial to me that it could shake confidence in the market in a Tether redemption liquidity crisis. Its just not different enough. Stage 5: acceptance.
- user-the-name 5y ago
  Not just "moving goalposts", outright lying. They have lied directly and repeatedly about their reserves.