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What percentage of cryptocurrencies are backed by real world assets? Who ensures that this backing is actually baked into the cryptocurrency and isn't just som
by slg 5y ago
What percentage of cryptocurrencies are backed by real world assets? Who ensures that this backing is actually baked into the cryptocurrency and isn't just some marketing speak? For example there is Tether which claimed to be backed by USD. "[I]t turns out that the stablecoin that used to say it was 100 per cent backed by cash reserves is in fact . . . 2.9 per cent backed by cash reserves".[1]
[1] - https://www.ft.com/content/529eb4e6-796a-4e81-8064-5967bbe3b4d9 https://www.ft.com/content/529eb4e6-796a-4e81-8064-5967bbe3b...
- mech422 5y agoAnd Theranos claimed to have working machines... Risk is risk - in stock, crypto, or life in general.
- arcticbull 5y agoThat's a false equivalence. Literally every share of a business is supposed to be backed by a business. Zero coins entitle the bearer to any right or interest whatsoever. Even those stable coins don't give you any claim on the backing instruments. Certainly not in Tether town. Says so right in their T&Cs.
- mech422 5y agoThe key word there is 'supposed'... Theranos, B. Madoff, and others seemed to feel that was just a suggestion :-P Also, businesses are not required to buy their stock back from you, so they are not 'backed' any more then crypto is. If a company goes broke, and you hold common stock - you get nothing edit:s/there/their/
- davidgerard 5y agoIn this thread, you're comparing crypto to Madoff and Theranos, and you think this is an argument in its favour.