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Tether reserves backed by 2.9% cash

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Re: Tether reserves backed by 2.9% cash

#111

Post by 627467 »

adflux wrote: post #41
skybrian wrote: post #35

Earlier quoted context omitted.

Where did you get “72 hours” from? That got me curious about what their rules actually are. From their terms of service [1]: > 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…

It's a pyramid scheme, Works until people start to pull out their money collectively

Won't most things break if people start pulling out their money collectively? Ie. National economies, companies, etc

Re: Tether reserves backed by 2.9% cash

#112

Post by viraptor »

nopassrecover wrote: post #64
viraptor wrote: post #12

Earlier quoted context omitted.

> What does international trade, yet alone your annual tax return, look like in a world in which “govcoin” is just one (and a lower preferred one at that) of many currencies used day-to-day? That's already a reality for many companies doing international trade. Especially global special-purpose device producers from smaller countries. It's annoying with paperwork and dealing with "what price was actually paid at the…

Good examples. What do you think it means for the stability of nation states, either domestically or on an international scale, in such a world though? It’s the increasing practicality of doing this (buy your breakfast in StarbucksCoin, your lunch in McCoin, and your groceries in WalCoin) that makes it more possible as a reality. But how does a government have credibility and get taken seriously domestically if the c…

Countries still can tell you what usage is legal and what isn't. We've tried StarbucksCoin already and people weren't happy: https://en.wikipedia.org/wiki/Company_store

We've also tried restricted foreign currency shops: https://en.wikipedia.org/wiki/Pewex

Re: Tether reserves backed by 2.9% cash

#113

Post by whywhywhywhy »

joering2 wrote: post #6
StavrosK wrote: post #2

Why print money when a private company can just create its own? Just imagine what's going to happen when there's a bank run on Tether.

Its unbelievable that someone stoles a $20,000 car and do 15 behind bars, yet here we have folks that embazzled $850,000,000 and AG will sit down with them to kibdly negotiate a plea deal and penalize them 4% of what they stole. I mean seriously what the hell happened to Lady Justice??

Stealing a car is an act of aggression against an individual.

Crimes are not simply about the monetary damages.

Re: Tether reserves backed by 2.9% cash

#114

Post by raducu »

DebtDeflation wrote: post #101
dehrmann wrote: post #9

The pitch is clearly a lie, but I'm also not too worried about them counting commercial paper and t-bills as "cash."

>The pitch is clearly a lie, but I'm also not too worried about them counting commercial paper and t-bills as "cash." The pitch being a lie is EXACTLY the problem. Tether is supposed to be nothing more than the gateway between crypto and the rest of the financial system. There is no reason for them to hold anything other than deposits at insured institutions. There is no reason for them to be making loans. There is n…

Anything that can prop crypto prices is a valid reason and anything that threatens the price is a damn lie.

Re: Tether reserves backed by 2.9% cash

#115

Post by TomSwirly »

raducu wrote: post #98
dandanua wrote: post #52

1. Print fake money 2. Buy crypto with them and create a huge hype 3. Sell crypto for real money 4. Profit 5. Receive your Nobel prize in Economics

A bit like the stock markets right now.

Not really.

Stocks are overvalued, but are backed by real-world items with an actual value.

A stock's value is bounded below by its breakup value. So if people lost interest in IBM, at some point the stock would be worth buying just for its property and IP.

But there's nothing preventing any cryptocoin from going to zero, except sentiment.

Re: Tether reserves backed by 2.9% cash

#117

Post by DebtDeflation »

dgellow wrote: post #84
ajg4 wrote: post #81

the market does not seem to care. we are indeed living in a post-truth era.

Give it time. Almost no one knows what Tether is. It's also a really technical, and thus niche, topic, not a lot of people understand the scam. Eventually a regulator body will finally do something about it.

>Give it time.

Yes. Bernie Madoff's scam lasted at least 16 years (1992-2008) and some suspect it could have started as far back as the 1970s.

Re: Tether reserves backed by 2.9% cash

#118

Post by DebtDeflation »

jimmydorry wrote: post #94
Marazan wrote: post #78

Earlier quoted context omitted.

The level of detail they have given for "Commercial Paper" means that it is worthless. Commercial paper makes up about 50% of Tether's balance book.

It feels like people don't understand Tether. Tether was originally created to be an intermediary between exchanges and anyone that wanted to move large amounts of USD without paying price spreads to buy / sell on either end. Tethers are essentially IOUs pegged to USD. While the Tether organization may have originally waited for the Tether purchaser to transfer the money into their accounts before issuing the Tether,…

>Tether doesn't appear to just be printing Tether with absolutely no backing.

Is there a difference between just printing them for the exchange you also own and just printing them for the exchange you also own in exchange for an IOU from that exchange that you call Commercial Paper?

Re: Tether reserves backed by 2.9% cash

#119

Post by Marazan »

jiofih wrote: post #103
Marazan wrote: post #71

I run ScamStableCrypto. I create a billion ScamStableCoins and claim they are worth $1 each. I give a billion ScamStableCoins to ScamCryptoExchange. ScamCryptoExchange is run by me. ScamCryptoExchange writes an IOU for one billion US dollars and gives it ScamStableCrypto (my right hand gives something to my left hand). I, as ScamStableCrypto, write down in my balance book that I have a billion dollars of Commercial P…

Sounds like fantasy. Whatever they wrote you the IOU for also comes out of your book, so your balance is $0. Doesn’t work like that.

Yes, that is the scenario I am describing. I have a billion dollars of liabilities in the ScamStableCoins I issued and a billion dollar in "Assets" from the IOU I wrote myself.

THus I am perfectly fully backed.

Re: Tether reserves backed by 2.9% cash

#120

Post by DebtDeflation »

ur-whale wrote: post #8

> Chief Technical Officer Paolo Ardoino Can't say this news comes out as a surprise. I'm actually surprised by the fact that there are any reserves at all. What is really interesting about Bitfinex / Tether is to research the history of the people who started these entities, especially their history prior to Bitcoin's existence. Here's a taste: https://nicolaborzi.medium.com/the-lawless-rollercoaster-of-... As much a…

From your first link:

"On November 5, 2018, as an executive of Tether Mr Devasini lent 900 million dollars to Bitfinex and as an executive of Bitfinex, Mr Devasini signed the receipt to Tether."

That sounds totally legit and normal.

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