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And the Cantor Fitzgerald CEO, a US bank authorized to deal in US treasuries, said at Davos (!) that iFinex/Tether actually had the USD they claim they have. A

And the Cantor Fitzgerald CEO, a US bank authorized to deal in US treasuries, said at Davos (!) that iFinex/Tether actually had the USD they claim they have. A strange development. But if they do they're sitting on one of the most profitable business on earth: emit a currency that doesn't pay interest, to the tune of tens of billions (and soon more than a hundred billion), and rake in the US treasuries yeld. BTW we don't hear much on the subject from Centre (Coinbase+Circle consortium emitting the USDC stable coin). Coinbase gives a yeld on the USDC stored at Coinbase itself but they don't give it to USDC not stored at Coinbase. At 26 billion USDC circulating, this seems to be quite the business model too.

FireBeyond 3y ago
> And the Cantor Fitzgerald CEO, a US bank authorized to deal in US treasuries, said at Davos (!) that iFinex/Tether actually had the USD they claim they have. Tether is well aware, then, that they have credibility claims to resolve. Otherwise, why would you authorize your bank to make statements at conferences about your AUM? However, that is more refreshing than the Deltec side of things (are they still the predominant bank for Tether?). Their Deputy CEO[1] has made the following farcical claims: - when people challenged money movement being largely than the entirety reported by The Bahamas, he said "well, that's related to a different banking license than what we have". When asked about the two banking licenses issued there, he couldn't remember the name of either of them. And wasn't sure if they had both, or just one of them... the Deputy CEO of the bank doesn't know what banking licenses they operate under... - he made comments that he could see individual transactions in Bitfinex and correlate them against their bank accounts. Kinda odd access for your bank to have... [1] Their Deputy CEO at the time was 33. His LinkedIn claimed that he was simultaneously an asset manager at his own firm, "Indepedance[sic] Weath[sic] Management" in Jacksonville, FL, a Professor of Finance at a university in Lebanon, a position which he gained immediately after getting his M.S. from HEC Lausanne in 2001, which, with simple arithmetic says he graduated with his Masters when he was ... 15. (And then became a 15 yo Professor?) AND the Deputy CEO of Deltec. Multitasking like Musk. PS: After a disastrous series of interviews, the bank removed his profile from their website. After people started pointing out how suspicious that looked in light of everything at the time (their "attestation, not audit" and "We've had an audit but we can't show it to you because it's in Chinese" farces), they added him back to the site, then took the site down entirely a week later and replaced it with a barely modified WordPress template site with no functioning links. And in the process they went from a "50 year old bank" to "operating for over 70 years", in the space of two weeks. Also entirely "hilarious" on the website now... Website is still WordPress... Online Banking is BS. Any combination of user/password will immediately respond "Invalid". I'm going to guess that's because that's exactly what the JS is coded to say because the login URI is 403 for everybody. Bitfinex might be getting more legit. Deltec still looks as shady as it ever did, if not worse.
- arcticbull 3y ago
  My question is: how have Tether managed to turn a profit on billions of dollars of long treasuries when the same thing literally bankrupted several banks with actual risk managers. Tether have never admitted to taking a loss, ever - and have continued operating despite admitting to the SDNY being short as much as 1/3 of their entire backing store at one point. Really makes you think. Either they are the single best traders on the face of the earth - and remember there's like 3 of them on a hammock in the Bahamas, including a plastic surgeon who used to sell pirated Microsoft products - or there's something more to this story. That aside it's hard to see what the crypto community is so in love with here. This is - at best - an opaque, trusted, centralized dollar derivative whose leadership refuses to actually verify their holdings. They also have the ability to randomly freeze coins without due process -- and they do! Even more so than other stablecoin issuers. Far more than Circle. And they cooperate with the US government, allegedly. Their main differentiator appears to be running a PayPal for pig butchering scams in Cambodia, and they seem to be antithetical to everything crypto stands for. No idea why we're even giving this story the time of day, it's the same baseless claims they've been making the whole time but with marginally higher numbers. Let's revisit this when they actually post an audit.
  - latchkey 3y ago
    > it's hard to see what the crypto community is so in love with here It is easy to see what the crypto community is so in love here. They provide a way for traders, globally, to sit in "dollars", they bought up a whole bunch of bitcoin for what is now super cheap (and they are a large holder) [0], and are now reaping in the profits from that and their US bonds. The longer that rates stay high, the more money they make. [0] https://www.coindesk.com/markets/2024/01/18/tether-purchased-another-89k-bitcoin-for-380m-remaining-11th-largest-btc-holder/ https://www.coindesk.com/markets/2024/01/18/tether-purchased...
    - arcticbull 3y ago
      And as usual, you come in with ad hominems. Nice to see some things never change. [edit](Ah, I see you stealthily removed them. I maintain the people who have to resort to calling names are usually in the weakest position - although I do enjoy yelling at clouds from time to time). Long-dated bonds go down in price when interest rates go up, as our friends at SVB learned. So the bonds they claimed to have years ago should be significantly under face value on their books. Unless they're the world's greatest hammock-based trading team. The question is why wouldn't the crypto community embrace USDC over USDT where they have actual, verified deposits, and a redemption process? And why is it always so much to ask for an audit? You know if they produced an audit from an actual auditor who didn't run away from them (like last time) I'd believe them, right?
x-complexity 3y ago
> At 26 billion USDC circulating, this seems to be quite the business model too. If you're talking about interest-bearing stablecoins, there's at least one stablecoin on that front. USDV pays out the Fed interest rate back to stablecoin holders. https://www.coingecko.com/en/coins/verified-usd https://www.coingecko.com/en/coins/verified-usd
- bboygravity 3y ago
  * as long as the ponzie ponzies
  - x-complexity 3y ago
    > * as long as the ponzie ponzies Unless the Fed decides to just not pay its debts anymore, bboygravity, this is 99.999% not likely to happen.
redsoundbanner 3y ago
It's spelled yield

FireBeyond 3y ago

> And the Cantor Fitzgerald CEO, a US bank authorized to deal in US treasuries, said at Davos (!) that iFinex/Tether actually had the USD they claim they have. Tether is well aware, then, that they have credibility claims to resolve. Otherwise, why would you authorize your bank to make statements at conferences about your AUM? However, that is more refreshing than the Deltec side of things (are they still the predominant bank for Tether?). Their Deputy CEO[1] has made the following farcical claims: - when people challenged money movement being largely than the entirety reported by The Bahamas, he said "well, that's related to a different banking license than what we have". When asked about the two banking licenses issued there, he couldn't remember the name of either of them. And wasn't sure if they had both, or just one of them... the Deputy CEO of the bank doesn't know what banking licenses they operate under... - he made comments that he could see individual transactions in Bitfinex and correlate them against their bank accounts. Kinda odd access for your bank to have... [1] Their Deputy CEO at the time was 33. His LinkedIn claimed that he was simultaneously an asset manager at his own firm, "Indepedance[sic] Weath[sic] Management" in Jacksonville, FL, a Professor of Finance at a university in Lebanon, a position which he gained immediately after getting his M.S. from HEC Lausanne in 2001, which, with simple arithmetic says he graduated with his Masters when he was ... 15. (And then became a 15 yo Professor?) AND the Deputy CEO of Deltec. Multitasking like Musk. PS: After a disastrous series of interviews, the bank removed his profile from their website. After people started pointing out how suspicious that looked in light of everything at the time (their "attestation, not audit" and "We've had an audit but we can't show it to you because it's in Chinese" farces), they added him back to the site, then took the site down entirely a week later and replaced it with a barely modified WordPress template site with no functioning links. And in the process they went from a "50 year old bank" to "operating for over 70 years", in the space of two weeks. Also entirely "hilarious" on the website now... Website is still WordPress... Online Banking is BS. Any combination of user/password will immediately respond "Invalid". I'm going to guess that's because that's exactly what the JS is coded to say because the login URI is 403 for everybody. Bitfinex might be getting more legit. Deltec still looks as shady as it ever did, if not worse.

arcticbull 3y ago
My question is: how have Tether managed to turn a profit on billions of dollars of long treasuries when the same thing literally bankrupted several banks with actual risk managers. Tether have never admitted to taking a loss, ever - and have continued operating despite admitting to the SDNY being short as much as 1/3 of their entire backing store at one point. Really makes you think. Either they are the single best traders on the face of the earth - and remember there's like 3 of them on a hammock in the Bahamas, including a plastic surgeon who used to sell pirated Microsoft products - or there's something more to this story. That aside it's hard to see what the crypto community is so in love with here. This is - at best - an opaque, trusted, centralized dollar derivative whose leadership refuses to actually verify their holdings. They also have the ability to randomly freeze coins without due process -- and they do! Even more so than other stablecoin issuers. Far more than Circle. And they cooperate with the US government, allegedly. Their main differentiator appears to be running a PayPal for pig butchering scams in Cambodia, and they seem to be antithetical to everything crypto stands for. No idea why we're even giving this story the time of day, it's the same baseless claims they've been making the whole time but with marginally higher numbers. Let's revisit this when they actually post an audit.
- latchkey 3y ago
  > it's hard to see what the crypto community is so in love with here It is easy to see what the crypto community is so in love here. They provide a way for traders, globally, to sit in "dollars", they bought up a whole bunch of bitcoin for what is now super cheap (and they are a large holder) [0], and are now reaping in the profits from that and their US bonds. The longer that rates stay high, the more money they make. [0] https://www.coindesk.com/markets/2024/01/18/tether-purchased-another-89k-bitcoin-for-380m-remaining-11th-largest-btc-holder/ https://www.coindesk.com/markets/2024/01/18/tether-purchased...
  - arcticbull 3y ago
    And as usual, you come in with ad hominems. Nice to see some things never change. [edit](Ah, I see you stealthily removed them. I maintain the people who have to resort to calling names are usually in the weakest position - although I do enjoy yelling at clouds from time to time). Long-dated bonds go down in price when interest rates go up, as our friends at SVB learned. So the bonds they claimed to have years ago should be significantly under face value on their books. Unless they're the world's greatest hammock-based trading team. The question is why wouldn't the crypto community embrace USDC over USDT where they have actual, verified deposits, and a redemption process? And why is it always so much to ask for an audit? You know if they produced an audit from an actual auditor who didn't run away from them (like last time) I'd believe them, right?

x-complexity 3y ago

> At 26 billion USDC circulating, this seems to be quite the business model too. If you're talking about interest-bearing stablecoins, there's at least one stablecoin on that front. USDV pays out the Fed interest rate back to stablecoin holders. https://www.coingecko.com/en/coins/verified-usd https://www.coingecko.com/en/coins/verified-usd

bboygravity 3y ago
* as long as the ponzie ponzies
- x-complexity 3y ago
  > * as long as the ponzie ponzies Unless the Fed decides to just not pay its debts anymore, bboygravity, this is 99.999% not likely to happen.

redsoundbanner 3y ago

It's spelled yield