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Tether is holding US commercial paper, yes, but they won't reveal WHO they've loaned to, or under what terms. Most likely, they have created new shell corporati
by ProjectArcturis 5y ago
Tether is holding US commercial paper, yes, but they won't reveal WHO they've loaned to, or under what terms. Most likely, they have created new shell corporations, made sweetheart loans to them from the Tether bank account, and then had them pay out distributions to the owners. In other words, they've replaced the cash that should be backing the Tether with likely worthless IOUs. Tether is a bomb waiting to explode the crypto space.
- gogopuppygogo 5y agoTether seems like a time bomb: https://crypto-anonymous-2021.medium.com/the-bit-short-inside-cryptos-doomsday-machine-f8dcf78a64d3 https://crypto-anonymous-2021.medium.com/the-bit-short-insid...
- graeme 5y agoIt’s even worse. Tether only might be holding commercial paper. They’ve lied about everything before, no one has verified their assets, and no one in the commercial paper market has heard of them, so it’s even possible the commercial paper claim is a straight up fabrication. https://www.ft.com/content/342966af-98dc-4b48-b997-38c00804270a https://www.ft.com/content/342966af-98dc-4b48-b997-38c008042...
- ProjectArcturis 5y agoI've outlined a scenario where they could be telling the truth about holding commercial paper but still have stolen all the money.
- graeme 5y agoIt’s certainly possible. I think it’s more likely there never was any cash and they printed Tether from thin air. They surely got something for that Tether, and despite their denials I expect they have commercial paper form crypto exchanges if they have any at all. But they may simply be lying about even having commercial paper at all.
- astoor 5y ago> "no one has verified their assets" It's worse than that - they were audited by Friedman LLP in 2017, but chose to suppress the full outcome: https://www.coindesk.com/tether-confirms-relationship-auditor-dissolved https://www.coindesk.com/tether-confirms-relationship-audito...
- graeme 5y agoHaha and I thought I was peak pessimist. Thanks forgot that detail. Brings this Dilbert comic to mind: https://dilbert.com/strip/1995-03-14 https://dilbert.com/strip/1995-03-14