3 ms·
> so long as a lot of people don't cash out at once A lot of people can’t cash out at once. Teather isn’t obligated to redeem to USD, it’s not just a scam (the
by boublepop 5y ago
> so long as a lot of people don't cash out at once
A lot of people can’t cash out at once. Teather isn’t obligated to redeem to USD, it’s not just a scam (them not having backing), it’s just overall an absurd situation.
“Give me your money and I’ll give you a note that says I have your money, and then I’ll never give you the money back, but perhaps you can exchange the note to others for money?”
- bluecalm 5y agoIt's not obligated to redeem your USDT but it is obligated to redeem it for its customers (exchanges mainly). At least on paper it works like this: 1)exchanges need Tether so they get it from the Tether inc. while depositing equal amount of USD with them 2)if they don't need some of it anymore they can redeem it We know depositing USD part never happens. It's likely some shady paper or more likely some promises are deposited instead. It's also very likely they buy BTC with freshly printed Tether (not directly but through some of their other entities) causing constant buying pressure for BTC and other cryptocurrencies. This may just work if enough people FOMO into crypto seeing the skyrocketing price as then the gang can sell their BTC for real USD.
- jqpabc123 5y agoWe know depositing USD part never happens. Therein lies the fraud and the collusion between Tether and the exchanges in perpetrating it. The grand fallacy of the crypto market is the idea that the exchanges are honest brokers and market makers just like in regulated markets --- despite the complete lack of oversight or regulation requiring as much.