Tether minted most USDT to just 2 firms – Alameda and Cumberland
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Re: Tether minted most USDT to just 2 firms – Alameda and Cumberland
#2If Tether is redeemable for USD on demand, then Tether sounds suspiciously like some sort of a bond that is evading regulation. Maybe my terms are laymenesque, but I think my point still stands.
Re: Tether minted most USDT to just 2 firms – Alameda and Cumberland
#3There are a lot of areas of crypto where I feel like I have a pretty good understanding, but I genuinely don't understand why anyone would "invest" in a stablecoin. What advantage does holding something like USDT offer over simply putting dollars in a bank account?
Re: Tether minted most USDT to just 2 firms – Alameda and Cumberland
#4There are a lot of areas of crypto where I feel like I have a pretty good understanding, but I genuinely don't understand why anyone would "invest" in a stablecoin. What advantage does holding something like USDT offer over simply putting dollars in a bank account?
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Re: Tether minted most USDT to just 2 firms – Alameda and Cumberland
#5I'd love to think something would be done about this, but like representatives and stocks, many people in politics are invested in schemes like this so I don't expect anything to actually be done that would hurt their own wallets.
Re: Tether minted most USDT to just 2 firms – Alameda and Cumberland
#6There are a lot of areas of crypto where I feel like I have a pretty good understanding, but I genuinely don't understand why anyone would "invest" in a stablecoin. What advantage does holding something like USDT offer over simply putting dollars in a bank account?
You can send it to any wallet. No KYC needed. You can do so programmatically thru a standardized RPC endpoint. You can send it to smart contracts (i.e. decentralized apps), to borrow against it, leverage it, lend it,... plenty if things to do once the USD makes it into a programmable blockchain.
Still a scam imo.
Re: Tether minted most USDT to just 2 firms – Alameda and Cumberland
#7There are a lot of areas of crypto where I feel like I have a pretty good understanding, but I genuinely don't understand why anyone would "invest" in a stablecoin. What advantage does holding something like USDT offer over simply putting dollars in a bank account?
Also, not an expert, but I believe it is easier to trade for other currencies and there are less rules around it. They are not really "investing" in stablecoins, but cashing out their cypto holdings and will eventually cash out into real dollars
Re: Tether minted most USDT to just 2 firms – Alameda and Cumberland
#8There are a lot of areas of crypto where I feel like I have a pretty good understanding, but I genuinely don't understand why anyone would "invest" in a stablecoin. What advantage does holding something like USDT offer over simply putting dollars in a bank account?
Having the rug pull experience minus the volatility.
Re: Tether minted most USDT to just 2 firms – Alameda and Cumberland
#9There are a lot of areas of crypto where I feel like I have a pretty good understanding, but I genuinely don't understand why anyone would "invest" in a stablecoin. What advantage does holding something like USDT offer over simply putting dollars in a bank account?
basically when buying and selling in an exchange you would buy and sell using tether. similiar to how in your investment account you trade dollars for stocks and stocks for dollars. as opposed to trading stocks for stocks.
and the reason you wouldn’t just deposit actual dollars on the exchange is to avoid regulations and laws related to actually depositing dollars
Re: Tether minted most USDT to just 2 firms – Alameda and Cumberland
#10If Tether is redeemable for USD on demand, then Tether sounds suspiciously like some sort of a bond that is evading regulation. Maybe my terms are laymenesque, but I think my point still stands.
Luckily their TOS says:
> "There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money."
Edit: Oops this has been updated to:
> Tether reserves the right to delay the redemption or withdrawal of Tether Tokens if such delay is necessitated by the illiquidity or unavailability or loss of any Reserves held by Tether to back the Tether Tokens, and Tether reserves the right to redeem Tether Tokens by in-kind redemptions of securities and other assets held in the Reserves.
> Any individual who is a U.S. Person and any entity that is a U.S. Person is prohibited from using the Site or any Services, including but not limited to using a Digital Tokens Wallet on the Site