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Could mean they are trying to convert them into dollars again, without breaking the peg. Maybe they want to be the first to rush to the exit as they know there'
by adflux 5y ago
Could mean they are trying to convert them into dollars again, without breaking the peg. Maybe they want to be the first to rush to the exit as they know there's most likely not enough USD backing behind tether (not 1usd:1usdt) to pay everyone back.
- neom 5y agoFull disclosure I'm totally not versed in crypto at all, but I do recall reading something on HN a while ago that teather is audited but one of the big 5 auditors (not that it means much, look at 1MDB etc)?
- michaelt 5y agoTether is pretty notorious for not being audited. And for repeatedly having auditors look at their accounts then run for the hills.
- agsnu 5y agohttps://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether https://www.bloomberg.com/news/features/2021-10-07/crypto-my... https://www.theverge.com/2021/10/15/22728253/tether-41-million-misleading-statements-fiat-currency-bitfinex-cftc https://www.theverge.com/2021/10/15/22728253/tether-41-milli...
- archontes 5y agoThey have no legal obligation to pay anyone back.
- short12 5y agoThey may not have the obligation but then the business is sunk. It would be dust in the wind in days as everyone transfered as much out as possible
- adflux 5y agoYes they do, https://tether.to/legal/ https://tether.to/legal/ even listed in their policy.
- elliekelly 5y agoIt seems they do have a contractual obligation of sorts. The Tether TOS state "The right to have Tether Tokens redeemed or issued is a contractual right personal to you." This language appears beginning in 2016. It is, unsurprisingly, light on the details. But the language does imply that the right exists and is non-transferrable.
- deleted 5y ago[deleted]