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> Once people start attacking it by eg buying them for $0.97 and exchanging for $1 thrn it might be over for tether. Or, alternatively, Tether is printing mone
by prvit 4y ago
> Once people start attacking it by eg buying them for $0.97 and exchanging for $1 thrn it might be over for tether.
Or, alternatively, Tether is printing money every time someone posts a sell order for USDT at less than $1.
At 0.97 that would be an immediate 3% profit for each USDT they buy.
- spywaregorilla 4y agoIf and only if they buy it and can sell it at again for $1.
- paulgb 4y agoIt would still be a profit in the accounting sense. They could erase a $1 liability at a cost of $0.97.
- spywaregorilla 4y agoYou're assuming they track tether as a liability. I doubt it, as they have no contractual obligation to redeem them.
- paulgb 4y agoTheir transparency page counts issued coins as liabilities: https://tether.to/en/transparency/ https://tether.to/en/transparency/
- spywaregorilla 4y agoTheir transparency page also states they have 1:1 asset backings which is a lie so oh well. This page is irrelevant. They are not obligated to redeem your tokens. They're not liabilities. They may pretend they are, but they're not, and if the money stops flowing, they can leave with all the remaining money in the bank laughing at their idiot customers.
- paulgb 4y agoI’m not saying that page is accurate, just that it reflects their treatment of outstanding tether as a liability, so buying it back for below par is profit in their books. I think we agree on all the rest; I also believe that it’s a scam.
- shkkmo 4y ago> reflects their treatment of outstanding tether as a liability, It reflects their desire to have is seem that way. Given Tether's well established history of lieing to try to seem more stable, this provides zero evidence for their real attitude. That's the real question that all the bros and shills try to hide. It isn't about when Tether's price can't be kept stable, but about when Tether decides they can't make more money off the market so takes their marbles and goes home. It is possible that Tether wouod decide to keep holding the peg, all the way until they run out of reserve assets, but it seems highly likely that there is a tipping point well before that where Tether decides to keep their remaining assets and let the peg die.
- spywaregorilla 4y agoBooks are imaginary, and books that are not publically audited are even more imaginary.
- lxgr 4y agoAs long as they have enough liquid assets they can sell for more than $0.97 on the dollar and still keep enough to maintain stability, yes. The big question seems to be whether they do have these.