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"Buy my stablecoin, it's 100% backed by actual dollars and therefore cannot crash" "OK, can we see behind the curtain?" "Absolutely not" "Can I cash them in
by Nursie 5y ago
"Buy my stablecoin, it's 100% backed by actual dollars and therefore cannot crash"
"OK, can we see behind the curtain?"
"Absolutely not"
"Can I cash them in with you to get the dollars back out?"
"Hell no"
That's why it's relevant. Because this is not a bank or bank-like situation, and comparisons to fratctional reserve are spurious. They're sold specifically on not being fractional.
- EGreg 5y agoSo now that we know, does it still apply? https://www.ft.com/content/529eb4e6-796a-4e81-8064-5967bbe3b4d9 https://www.ft.com/content/529eb4e6-796a-4e81-8064-5967bbe3b...
- Nursie 5y agoYou mean now we know they’ve committed multi-year multi-billion dollar fraud against their users? I would have thought that would be a fantastic reason never to go anywhere near the entire ecosystem, personally. Especially as their website is still doing it (or at least using weasel-words to heavily imply it) - “All Tether tokens are pegged at 1-to-1 with a matching fiat currency (e.g., 1 USD₮ = 1 USD) and are backed 100% by Tether’s reserves.”
- tata71 5y agoTether has lost dominance, the markets are moving away from them hopefully.
- distortedsignal 5y agoCould you go into what you mean by “Lost dominance?” Looking at CoinMarketCap, it looks like they (Tether) have the largest stablecoin market cap by 50%, and their 24h volume was an order of magnitude greater than the next closest stablecoin.