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> how Tether is anyway different from FTX So far there is only evidence that Tether has mis-appropriated SOME of the money it claims to be holding, whereas FTX
by dzdt 4y ago
> how Tether is anyway different from FTX
So far there is only evidence that Tether has mis-appropriated SOME of the money it claims to be holding, whereas FTX lost basically ALL of the money. As long as you are optimistic on the "SOME" fraction being small in comparison to the gigantic size of Tether, you can hope that Tether is still a low risk for losing your value.
- CPLX 4y agoIn the event that whoever runs Tether has committed financial fraud on a large enough scale to lose, say, 5% if the total value, which is billions of dollars, and they are now felons and fugitives facing certain lifetime confinement, what possible incentive could they have to return the other 95% to you? How, exactly, do you think the story here is going to end?
- charleslmunger 4y ago>In the event that whoever runs Tether has committed financial fraud on a large enough scale to lose, say, 5% if the total value, Why is this phrased like a hypothetical? >In fact Tether reserves were not “fully-backed” the majority of the time. https://www.cftc.gov/PressRoom/PressReleases/8450-21 https://www.cftc.gov/PressRoom/PressReleases/8450-21
- vba616 4y ago>As long as you are optimistic on the "SOME" fraction being small in comparison to the gigantic size of Tether, you can hope that Tether is still a low risk for losing your value. What is the "size of Tether"? Do you mean the total customer deposits, or do you mean the assets of Tether Limited Inc? The percentage of customer deposits lost and whether any customer deposits are lost are distinct things. Once the owners' net equity is negative, who will be holding the bag if not customers?