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Tether's 'market cap' is like 60 billion or whatever, I think most of that was just created out of thin air, but I think some of it was exchanged for real dolla

Tether's 'market cap' is like 60 billion or whatever, I think most of that was just created out of thin air, but I think some of it was exchanged for real dollars, like a few percent, maybe a couple of billion dollars. In which case, when the fraud comes crashing down, they will have stolen hundreds of millions, to maybe a couple of billion dollars. Imagine if somebody stole a piece of art worth hundreds of millions of dollars...

ludjer 4y ago
The way I always thought about it was they printed Thether and used it to buy other POS/POW tokens like BTC + Eth, and then sold those for real $$$.
sobkas 4y ago
> Tether's 'market cap' is like 60 billion or whatever, I think most of that was just created out of thin air, but I think some of it was exchanged for real dollars, like a few percent, maybe a couple of billion dollars. In which case, when the fraud comes crashing down, they will have stolen hundreds of millions, to maybe a couple of billion dollars. > Imagine if somebody stole a piece of art worth hundreds of millions of dollars... Buy some bs art for peanuts, get bs appraisal that it's worth millions, donate it to some bs gallery and reap tax deductions. Art was turned into a tax evasion scheme, and it compromised any value it ever had.
spaceman_2020 4y ago
They did handle several billion in redemptions without any hiccups when Luna collapsed. But then again, everyone knows that if Tether blows up, every single crypto entity collapses. If Tether had a hole of a few billion, other entities might have stepped in. Will they do so again? Hard to tell. Regardless, Tether is a ticking time bomb. It would be a fantastic business if they did indeed have all that money. 70B in depsoits. Even in safe short-term t-bills, that's a crap load of risk-free interest income for basically doing nothing.
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ludjer 4y ago

The way I always thought about it was they printed Thether and used it to buy other POS/POW tokens like BTC + Eth, and then sold those for real $$$.

sobkas 4y ago

> Tether's 'market cap' is like 60 billion or whatever, I think most of that was just created out of thin air, but I think some of it was exchanged for real dollars, like a few percent, maybe a couple of billion dollars. In which case, when the fraud comes crashing down, they will have stolen hundreds of millions, to maybe a couple of billion dollars. > Imagine if somebody stole a piece of art worth hundreds of millions of dollars... Buy some bs art for peanuts, get bs appraisal that it's worth millions, donate it to some bs gallery and reap tax deductions. Art was turned into a tax evasion scheme, and it compromised any value it ever had.

spaceman_2020 4y ago

They did handle several billion in redemptions without any hiccups when Luna collapsed. But then again, everyone knows that if Tether blows up, every single crypto entity collapses. If Tether had a hole of a few billion, other entities might have stepped in. Will they do so again? Hard to tell. Regardless, Tether is a ticking time bomb. It would be a fantastic business if they did indeed have all that money. 70B in depsoits. Even in safe short-term t-bills, that's a crap load of risk-free interest income for basically doing nothing.

deleted 4y ago
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