4 ms·
In tether’s case this is the same - withdrawals through it’s operator for fiat cash take tether off the market and lower it’s market cap. A more accurate descr
by kolinko 4y ago
In tether’s case this is the same - withdrawals through it’s operator for fiat cash take tether off the market and lower it’s market cap.
A more accurate description would be „withdrawals minus deposits”, but it’s quite obvious that this is what is meant.
- arcticbull 4y agoIt depends. Tether lies constantly, and has lied many times. We have NYAG and CFTC settlements to that effect. The point parent is making, AFAIK, is that without actual audits (that they have promised for years were only months away) we have no idea if they actually processed $10B of withdrawals. Or whether they simply nuked $10B of unbacked Tethers from orbit. Maybe they printed $10B, used it to buy Bitcoin, then sold the Bitcoin back for USDT and nuked the USDT? We have no way to know without a formal audit.
- jules-jules 4y agoImportant to note that they can only nuke that is under their control right now, and presumably Bitfinex' (and perhaps some other entities). Everything that is in wider circulation can only be removed through actual withdrawals.
- arcticbull 4y agoThat's assuming they were paid dollars for those USDT by exchanges. An exchange could borrow the USDT, and when returned, they could be burned - with no dollars changing hands.
- jules-jules 4y agoYeah absolutely. Wouldn't surprise me in the least if the likes of Binance, Tron, and FTX issued Commercial Paper in exchange for USDT.