> What exactly is hard about running a fiat backed stablecoin? Don't you just accept money for your token and invest it in low risk crap? That's what Centre (C

> What exactly is hard about running a fiat backed stablecoin? Don't you just accept money for your token and invest it in low risk crap? That's what Centre (Circle+Coinbase) is doing. They're emitting USDC and publish the individual identification numbers of every single short term US treasury (and the bank at which they're held) they buy with actual USD from customers. I don't know, from their terms of services, what happens with the returns/yeld on these treasuries. For now that interest rates went up suddenly Centre is getting several percent on tens of billions (!) yearly. They're certainly not distributing the yeld to each individual address owning USDC. So it looks like Centre may be a very profitable company by now. But tether's case is believed to be different: many believe they never had anywhere near the amount of real USD backing the USDT they emitted and that they emitted USDT mostly out of their arse, tens of billions of them, and used these to pump the price of BTC (and of the whole ecosystem).