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Tether says it bought 27 tons of gold in fourth quarter
- MikeNotThePope 9mo agoThat’s pretty stupid. If the value drips, it’s no longer sufficient collateral.
- Scoundreller 9mo agoHead, we win. Tails, you lose.
- function_seven 9mo agoIt's collateral for their XAUt token, not the dollar one.
- theautist 9mo agoFrom the article: "The reserves backing Tether USDT were dominated by the U.S. Treasuries with gold representing only 7% as of the end-September."
- didip 9mo agoWhat is the point of stablecoin holder to hold gold? digital currency cannot be trusted on its own?
- Maxatar 9mo agoIf you read the article, it's because Tether also issues a gold token called XAUT whose value is pegged to the price of gold: https://coinmarketcap.com/currencies/tether-gold/ https://coinmarketcap.com/currencies/tether-gold/
- Scoundreller 9mo agoTheir whole market cap only equates to ~14 tons at current prices though… and article says they bought 26 tons in the quarter before this quarter where they bought 27 tons…
- jfyi 9mo agoStep 1, people hand Tether real money at 0% interest. Step 2, Tether invests in interest bearing assets. Step 3, Repeat step 2 with profits from step 2. The choice of gold is just diversification. Kind of odd timing though.
- cjbenedikt 9mo agoDoes anybody remember Long Term Capital Management? https://en.wikipedia.org/wiki/Long-Term_Capital_Management https://en.wikipedia.org/wiki/Long-Term_Capital_Management They also thought nothing can ever go wrong. Until it did... Dunning-Kruger effect.
- exabrial 9mo agoIt blows my mind one can buy _ton_s of gold.