4 ms·
> In the short term, they have the reserves for sure. Why for sure? Their "audits" and other information provided that they have the reserves were rather unsu
by CaptainZapp 4y ago
> In the short term, they have the reserves for sure.
Why for sure?
Their "audits" and other information provided that they have the reserves were rather unsubstantial, if not outright dodgy.
- dragontamer 4y agoShort term, USDT kept enough reserves to hold the peg steady for years. I'm not saying USDT was 100% backed. They probably could have accomplished all of this with just 20% backing, maybe even less. But in the short term, only 20% of people would ever "test" the reserves so to speak. Now I don't know how much USDT was fraudulent... I do believe a lot of it was fraud. But there's clearly a nugget of truth, a nugget of backing that kept the price steady last year and the year before. Once that "nugget" of stability runs out, its all over.