4 ms·
No worries, the Bitfinex people will just conjure up more unbacked Tether to pump the value back up
by nikanj 4y ago
No worries, the Bitfinex people will just conjure up more unbacked Tether to pump the value back up
- senttoschool 4y agoYep. What people don't realize is that Tether is the ultimate linchpin of the crypto industry.
- repomies69 4y agoIf Silvergate had kept their reserves in Tether instead of those 10-year goverment bonds, they would still be chugging along nicely.
- pavlov 4y agoWouldn’t it be amazing if they had actually done that. When the depositors all came asking for their money, Silvergate Bank would have replied: “So, we wired your 11 billion dollars to an unaudited corporation in the Bahamas. No worries, they gave us a cryptographic receipt for 11 billion virtual magic beans! I’m sure we can redeem those for you guys. Hold on, we’ll call their CEO, the man who used to produce Inspector Gadget cartoons in the 1980s… Oh, he doesn’t answer his phone? Telegram group message I guess…”
- Ekaros 4y agoActually this raises interesting question. Does Tether itself hold any 10-year bonds? And if there was a run on them, could they honor the peg?