Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

finance.yahoo.com

Post reply on HN
Print view View original

131–140 of 149 posts

Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#131

Post by Geisterde »

seanhunter wrote: post #92
Geisterde wrote: post #55

Earlier quoted context omitted.

I dont think they will end up like cz, they are one of the biggest buyers of government bonds. The way skeptics in the space take it is that they offer an outlet for a cbdc thats compatible with the existing banking system.

The treasury market is so big I would be surprised if that is a consideration but I could be wrong. There is $25tn notional outstanding and a lot of players in the market have been complaining about lack of liquidity for a while now so if Tether was to completely evapourate, having on large passive investor out of the picture should (I would think) make it better for everyone else if they notice at all. Here’s more d…

The liquidity issue is on the buyer side, there arent enough buyers of government bonds, which is why weve now had a couple rocky bond auctions. If there wasnt enough bonds to buy then interest rates would be in decline as banks outbid each other.

Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#132

Post by alexb_ »

halJordan wrote: post #97
yterdy wrote: post #40

Earlier quoted context omitted.

For whom?

For everyone. The answer would be the same if the yuan was the world's reserve currency. Having a single reserve currency is just good. Please don't conflate your distaste for a country's politics as somehow obviating the unbridled success of the global economy.

This isn't true - China as a world leader is worse than the US, because China has a worse government and does not believe in the same freedoms the US does. The US dollar being proliferated everywhere is good because it helps the US stay the world power with a lot of influence, which is much better for the world.

Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#135

Post by mteam88 »

kranke155 wrote: post #105
mteam88 wrote: post #47

Earlier quoted context omitted.

That is an unfounded assertion. SBF et al committed a crime and defrauded thousands. Tether is a profitable business cooperating with the US govt. Please don't dispense slanderous accusations unless you know what you are talking about.

You’re joking? Tether is a well known scam. We have no idea that they have any backing for the amount of tokens they’ve issued and we have significant indications they don’t.

No?

Tether is an insanely profitable company, they would be able to fill any hole in a few years purely from profit. That is besides the point though.

There is no (literally 0) evidence that Tether is not solvent. Tether itself has been audited [0] and has hundreds of millions MORE reserves than USDT issued. Tether is the opposite of the fractional reserve banks in America. Tether is MORE solvent than major US banks (before federal bailouts.)

> "Tether is a well known scam." Huh? Hundreds of thousands of real people use Tether to transact monthly. Seems pretty legit to me?

I will concede that Tether has made some strange choices by choosing a smaller Italian firm to conduct their audits, but this is very different than a "well known scam."

[0] https://tether.to/en/transparency/#reports

P.S. if you want to discuss 1 on 1 my socials are in my bio

Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#136

Post by yterdy »

alexb_ wrote: post #132
halJordan wrote: post #97

Earlier quoted context omitted.

For everyone. The answer would be the same if the yuan was the world's reserve currency. Having a single reserve currency is just good. Please don't conflate your distaste for a country's politics as somehow obviating the unbridled success of the global economy.

This isn't true - China as a world leader is worse than the US, because China has a worse government and does not believe in the same freedoms the US does. The US dollar being proliferated everywhere is good because it helps the US stay the world power with a lot of influence, which is much better for the world.

And now I can't tell if YOU are being sarcastic or not.

Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#137

Post by redcobra762 »

kranke155 wrote: post #129
Jerrrry wrote: post #112

Earlier quoted context omitted.

It may be insolvent, and that may mean "scam" to you, but those words are different. Even if they claim full backing and don't, they have lied. Whether that is substantially and materially a sole qualifier in determining them a fraud and scam, is for the legal system, not an assortment of most vocal persons, to decide.

An insolvent pseudo stablecoin that swears to be solvent (pinky finger) is the very definition of a scam.

You beg the question by claiming it’s insolvent and calling it a “pseudo stablecoin”.

So no, it’s not the “very definition” of a scam.

Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#138

Post by redcobra762 »

ForHackernews wrote: post #130
redcobra762 wrote: post #58

Earlier quoted context omitted.

Good point, let’s presume literally all of crypto is actively doing all of our worst fears, and not bother with a pesky thing like proof.

>not bother with a pesky thing like proof This is pretty hilarious coming from someone defending a company that refuses to produce a legitimate audit. (no, an "attestation" is not an audit) If all they're doing is sitting on a giant big pile of cash and treasury bonds, it should be absolutely trivial to provide proof: here's where those assets are deposited.

If you can’t see the value in an attestation, you’re not familiar with the topic.

And I’m not “defending” anything other than the basic idea that when one has not proven something, one cannot claim it as true. Nobody has been able to prove Tether is a scam, so it isn’t.

Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#139

Post by kranke155 »

mteam88 wrote: post #135
kranke155 wrote: post #105

Earlier quoted context omitted.

You’re joking? Tether is a well known scam. We have no idea that they have any backing for the amount of tokens they’ve issued and we have significant indications they don’t.

No? Tether is an insanely profitable company, they would be able to fill any hole in a few years purely from profit. That is besides the point though. There is no (literally 0) evidence that Tether is not solvent. Tether itself has been audited [0] and has hundreds of millions MORE reserves than USDT issued. Tether is the opposite of the fractional reserve banks in America. Tether is MORE solvent than major US banks…

https://protos.com/tether-transparency-a-lesson-in-lying/

Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#140

Post by mteam88 »

fsmv wrote: post #27
scaredginger wrote: post #23

Earlier quoted context omitted.

Can you explain this 'common sense'? I was under the impression that Tether was in the business of taking USD (with the promise of returning it) and earning interest on that USD without paying any interest on it. If that's true, it sounds like a dream business to me

The common sense is that they would make a lot more money by doing fractional reserve (leaving them open to a bank run collapse) and there is nothing really to stop them from doing that.

Tether makes money from interest on the funds that they do actually have. Maximizing the amount of money that they hold would actually increase the amount of profit they make. They have no incentive (and a pretty strong disincentive) to be insolvent.
Post reply on HN