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I don't think there really are any (or many) reserves. I think they just printed a bunch of tokens, used the tokens to buy BTC and to inflate the value of the c
by phpnode 5y ago
I don't think there really are any (or many) reserves. I think they just printed a bunch of tokens, used the tokens to buy BTC and to inflate the value of the crypto they hold in Bitfinex (Bitfinex and Tether are approximately the same company). If they throw in the towel they lose their ability to influence the crypto market which is where their actual gains come from.
- bob33212 5y agoThat seems most likely. They thought that it doesn't matter if they back these tethers with BTC because BTC is a better investment than the UDS anyways. Once they went down that path they had no way of getting out other than printing more tether to prop up BTC when BTC dropped.