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I don't know anything about anything, but I see Wikipedia says Tether is 65% "backed by commercial paper". Which as far as I can tell basically means IOUs, but
by Joeboy 5y ago
I don't know anything about anything, but I see Wikipedia says Tether is 65% "backed by commercial paper". Which as far as I can tell basically means IOUs, but IOUs that are considered somewhat legit. It definitely seems questionable, but I'm not really sure how to assess how bad it is or isn't.
1) https://en.wikipedia.org/wiki/Tether_(cryptocurrency) https://en.wikipedia.org/wiki/Tether_(cryptocurrency)
Edit: I see elsewhere somebody saying "nobody in the commercial paper markets have heard of them"
- jbverschoor 5y agoBanks don't have to back the dollar by anything anymore.
- thow-58d4e8b 5y agoWith Tether - it's best to follow "fraud until proven otherwise" principle That "commercial paper" could very well be IOUs from themselves to themselves
- grey-area 5y agoTheir commercial paper would make them one of the largest players in the global market if their numbers were true, but nobody knows what they have invested in, they say it is in crypto as well (eek!), they've been found guilty of fraud multiple times, including faking assets by using temporary bank transfers, and the amounts we're talking about make it very hard to believe they could function at that scale without making lots of noise in the global commercial paper market. So basically, like most other things they say, it's simply not credible. https://www.ft.com/content/342966af-98dc-4b48-b997-38c00804270a https://www.ft.com/content/342966af-98dc-4b48-b997-38c008042...
- antb123 5y agoUSDC? and BUSD have been growing faster and are US regulated.