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A reasonably common belief among people who have studied the issue is that Tether was at one point unbacked (see NY AG report), and likely fudged their numbers
by jawiggins 1y ago
A reasonably common belief among people who have studied the issue is that Tether was at one point unbacked (see NY AG report), and likely fudged their numbers a bit through the use of corperate paper which was plausibly worth $1 but practically could be bought for less than $1, but they have since made enough through various investments that they could now plausibly be fully backed.
- 3abiton 1y agoThis sounds like black magic, ie waiting for a "bank run" to test the validity of Tether.
- jawiggins 1y agoYes - a common criticism of tether is that many times they have claimed to have an audit coming "soon".
- disgruntledphd2 1y agoAnd to be fair, given basically all of the fraudulent companies that managed to pass audits, the fact that they won't even bother is a pretty strong signal. But hey, ultimately it's just gonna blow up the economy at some point, but we'll be fine right? Right?