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What “snapshots”? All transactions are visible on the chain. I don’t get how that is supposed to help. Could as well just use Photoshop?

• mikeyouse 4y ago
  They rely on 3rd party attestations where an audit firm verifies that when eg Tether says they have $100 cash, 1 btc and 1 eth, they actually do. The issue comes when these “point-in-time attestations” are gamed by eg taking a 1-day loan the day before the statements are sent so that the cash balance qualifies.
  • dd36 4y ago
    That would never fly with a real audit. You’d perform a triple tie out and the incoming cash transaction would have to be recorded. And you never do a single day.
    • acjohnson55 4y ago
      Probably why very few of these organizations do real audits.
    • pifm_guy 4y ago
      The audit documents make clear they are point-in-time. I'm sure if they could do an audit for a full year/quarter, they would. But they didn't, so they can't.
      • dd36 4y ago
        They can. Anyone that won’t should be shut down immediately.