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But... does it ultimately matter? All the other sh*tcoins are backed against nothing and have huge market caps as well.

deleted 5y ago
[deleted]
tppiotrowski 5y ago
It’s different because Tether claims to hold 1 USD for each Tether. A claim that should be verifiable. The value of sh*tcoins is just a function of their future resale value.
- aeternum 5y ago
  They claim to hold assets with values equivalent to 1 USD / Tether. Different than holding the USD directly. They provide a more detailed breakdown here: https://tether.to/wp-content/uploads/2021/08/tether_assuranceconsolidated_reserves_report_2021-06-30.pdf https://tether.to/wp-content/uploads/2021/08/tether_assuranc... About half in commercial paper and CODs. A quarter in t-bills. 2B in unspecified "digital tokens".
  - jfrunyon 5y ago
    Yes, now that they've been caught claiming to hold 1 USD per Tether without doing so, they claim it's only stuff worth (in their estimation!) 1 USD per Tether. And still refuse to provide any evidence that they are doing so. Please stop defending them.
    - aeternum 5y ago
      I generally agree, not sure why anyone would choose to use Tether when their are alternatives like USDC. However I still think it is important to properly represent Tether's current claims.
      - coolspot 5y ago
        Drug/arms/human trafficking operations can have easier time cashing hundreds of millions via shady Tether than US-based audited and KYCed USDC.
mrgordon 5y ago
Yes because if they're saying they have tons of USD-equivalent and buying other coins with it then they've been artificially inflating the other coins with bogus funds
otterley 5y ago
Of course it does. Fraud is a crime for a reason.
spzb 5y ago
It’s almost certain now that Tether doesn’t have fiat currency to back up its claimed value. But it’s a convenient fiction for everyone to keep believing as long as you’re not the one holding the Tethers when everyone suddenly decides to stop believing.
WalterSear 5y ago
Given that 70% of all crypto transactions involve Tethers, the market cap of everything in crypto is more realistically denominated in Tethers than dollars.

deleted 5y ago

[deleted]

It’s different because Tether claims to hold 1 USD for each Tether. A claim that should be verifiable. The value of sh*tcoins is just a function of their future resale value.

aeternum 5y ago
They claim to hold assets with values equivalent to 1 USD / Tether. Different than holding the USD directly. They provide a more detailed breakdown here: https://tether.to/wp-content/uploads/2021/08/tether_assuranceconsolidated_reserves_report_2021-06-30.pdf https://tether.to/wp-content/uploads/2021/08/tether_assuranc... About half in commercial paper and CODs. A quarter in t-bills. 2B in unspecified "digital tokens".
- jfrunyon 5y ago
  Yes, now that they've been caught claiming to hold 1 USD per Tether without doing so, they claim it's only stuff worth (in their estimation!) 1 USD per Tether. And still refuse to provide any evidence that they are doing so. Please stop defending them.
  - aeternum 5y ago
    I generally agree, not sure why anyone would choose to use Tether when their are alternatives like USDC. However I still think it is important to properly represent Tether's current claims.
    - coolspot 5y ago
      Drug/arms/human trafficking operations can have easier time cashing hundreds of millions via shady Tether than US-based audited and KYCed USDC.

mrgordon 5y ago

Yes because if they're saying they have tons of USD-equivalent and buying other coins with it then they've been artificially inflating the other coins with bogus funds

otterley 5y ago

Of course it does. Fraud is a crime for a reason.

spzb 5y ago

It’s almost certain now that Tether doesn’t have fiat currency to back up its claimed value. But it’s a convenient fiction for everyone to keep believing as long as you’re not the one holding the Tethers when everyone suddenly decides to stop believing.

WalterSear 5y ago

Given that 70% of all crypto transactions involve Tethers, the market cap of everything in crypto is more realistically denominated in Tethers than dollars.