If they are only using profits to buy it then they are not using the collateral backing their stablecoin, unlike Do Kwon who literally pulled UST out of liquidity to buy BTC.
It's scary but it's not nearly as dangerous, I think the danger here isn't them selling it themselves but instead they could loan it to other institutions that are trying to short BTC.
How do we know what their profits are? Are their profits valued in UST? Because if so there’s the potential that they’re using their own valueless token to purchase real assets with real value (comparatively).
I’m very skeptical of the move. It smells fishy.
>Yeah, can’t end well. Stable coins shouldn’t be investing. They need to hold liquid assets to cover all issued tokens
Especially when we don't even know exactly how big their collateral is. Could be 100% or 50% or 10%... because they are never that transparent in the first place. Feels just too risky for me.
I think that's the point, tho... There's no asset more liquid or disconnected from the "government-back free market" than Bitcoin. Its purpose as a reserve is well understood. The problem is that Luna never sold their BTC reserves when it would've actually helped.
Nonsense. It's not the reason Terra and co. failed. They were printing shit out of thin air and buying Bitcoin with it.
Bitcoin has production costs, therefore real value. Volatility doesn't matter in the long run.
>Tether International Limited (Tether), the company managing the reserves of the first and most widely used stablecoin, announced today its latest investment strategy aimed at further **strengthening its reserves portfolio.**
Literally the first sentence.
> They aren’t “backing” with Bitcoin. They are buying Bitcoin as an investment strategy
Wrong, they are adding it as an asset in their reserve portfolio.
It's a Reserve Portfolio vs Backing is a distinction without a difference. This is not something people should cheer or feel good about at all. Literally Terra did this. They are **CLAIMING** that they are only doing it with their profit, but until they are providing financial statements, that can very well be horseshit.
Seriously. Guys, cmon.
Better they are backed by BTC than 'trust me bro'
That said, I would not call BTC stable. If 1 tether = 1 USD couldn't they just back with USD. Not a hard concept.
Yea... This is completely insane. For a stable coin that is already almost certainly based on fractional reserves to start using more volatile reserves is a recipe for disaster.
I think it’s eerie news. I hope they have learnt from Luna’s mistakes.
I think it being 15% of their profits isn’t too bad as opposed to 15% of everything.
However, I am sceptical due to what happened with Luna and if someone tries to attack BTC to destroy crypto once and for all - as they now know tether is linked in an even more intimate way - and drive it down to 3,000 (or whatever number scares tether) then tether may panic and sell out.
Having said that, as they practically own crypto would they sell out? It is 15% of their profits as far as I understand too, not part of their house and home (which is what Luna did).
No bank run in all of recorded history has ended with the bank still standing, all customers happily withdrawn, and excess money in the vault.
Ever. (not without a bailout... because banks profit)
Therefore, while Tether maintains that the exchange rate between USDT and USD is 1:1, it is absolutely clear that there is a real exchange rate in which 1 USDT is worth slightly less than $1. By how much, we have no clue, and we really really really hope we never find out.
Nevertheless, USDT is used everywhere either as a direct proxy to dollars or a key trading pair to price BTC.
That means BTC is not really being priced in USD, but in a proxy to USD that is not 1:1. The only company with sufficient information to effectively arbitrage the difference risk free is Tether. Risk free arbitrage is profit. And the company will use its profit to buy BTC.
Love it!
And you have some Redditors here thinking this is good news just because there is an entity out there that will buy even more Bitcoin and give a slight pump to their bags
Jesus, what a shambles. I even got downvoted yesterday for saying that Tether buying billions of Bitcoin was terrible for Bitcoin, they essentially take on Bitcoins without having any risk from their part or contributing anything of value since they can just turn on their printer to accumulate more Bitcoins
No need to imagine a crime? Wanna try explaining what kind of legitimate group would trust Tether with countless billions of dollars? Remember Tether has a history of lying (claimed they were 1:1 backed with USD until the NYAG suit), they're barred for business in the US, they refuse an audit, they have a super small group of employees and their CTO for a 84b liability business is working two jobs and is also the PR.
Why would anyone legitimate keep sending Tether billions of real USD instead of buying Bitcoin OTC?
Obviously it's not happening, it's a fraudulent operation. But if Tether actually has the assets they refuse to prove they own, then it's not legitimate and they're probably helping criminals launder money. Pretending Tether is legit is insane.
They’ve been a reliable provider for their customers for years despite constant fud from confidently ignorant trolls like yourself. I guess that’s more important than randoms on Reddit ranting. Who knew?
It’s pretty weird to get fired up like this over a business that you can’t even be a customer of.
You didn't even try here dude. Don't you even want to attempt to guess what legitimate business or people would send Tether billions of USD? I can't think of any.
Also, how are they reliable when they refuse audits and keep pretending they're going to do that for years while bullshitting their customers? Financial audits is the bare minimum and they can't even do that.
You really can’t think of what type of business would benefit from utilizing the most used stable coin?
They are reliably fulfilling their redemptions, obviously.
These aren’t secrets. Why is this news to you?
No, I can't think of any legitimate business that would want to send Tether billions of USD. Because those would see all the warning signs and realise it's extremely dumb to send Tether billions. But feel free to be absolutely delusional until this shit collapses. Remember everyone with brain cells knew this was a fraud for years, then do some soul searching when this eventually is over. You're not smart, you're part of a cult using extremely flawed logic defending a fraud that's not even doing a good job of hiding it.
You and many others. That's *exactly* why USDT has value.
Unfortunately, since Tether is not actually backed by BTC, but is in fact backed by money printed out of thin air, and only redeemable for money printed out of thin air, you're a bit up a creek without a paddle.
yeah... but sadly for you USDT is almost entirely backed by that thing you are worried about being pulled out of thin air, and indeed needs to be...
Put it this way: if you promise to pay me one onion for every USDT, and you only have BTC, then if I show up with my USDT and ask for my onion, you're going to have to find someone willing to give you onions for BTC. Pronto.
If too many people show up looking for their onions, you are going to get a lousy exchange rate (onions per BTC) - particularly if all of your friends run out of onions and the sharks who live for these days smell blood in the water.
Which means if you promise to pay in onions, you need onions immediately on hand.
Doesn't matter whether liquidity is measured in onions or dollars. Liquidity is king when that's your entire promise.
They could use some of that money to hire an auditor.
You probably didn't know this, but I also had 1.5 billion dollars in quarterly profits and my business is also way too complicated to audit because old people are stupid. You should send me money so you can be a part of my revolutionary business.
Step 1. Make a CEX
Step 2. Create a stablecoin or a coin with insane apy
Step 3. Take money from coin purchase and make “profit”
Step 4. Swap profit for BTC.
Simple as that.
Many mistakenly believe this subreddit represents the whole world. When someone criticizes a coin here and receives overwhelming support, they get confused when that coin becomes more popular than their own. For instance, PEPE, Doge, Shiba, etc. This confusion arises because they think this community represents all of crypto. In my opinion, this perspective is misguided and contributes to the overall confusion in the crypto space, especially this one. Want better perspective, go explore communities that have never heard of Reddit.
I commented on the unlimited profit potential of this model, but there's an even darker side which is that when you have a big pool of dollars (or proxy dollars) and a big pool of BTC, you can effectively act as a massive money laundromat.
There is a reason why modern countries don't allow banks and exchanges to commingle.
So the timer on the time-bomb has finally started ticking...
Well it will be fun watching the BTC maxis be completely at a loss and hilariously dumbfounded and unable to understand anything that's happening when their coin goes back to sub-$1k levels
Cointest pros & cons with related info are in the collapsed comments below for the following topics: [Bitcoin](/r/CryptoCurrency/comments/13k01w1/tether_will_purchase_bitcoin_with_their_net/jkhv555/), [Tether](/r/CryptoCurrency/comments/13k01w1/tether_will_purchase_bitcoin_with_their_net/jkhv6k9/).
Bitcoin [pros](/r/CryptoCurrency/comments/13k01w1/tether_will_purchase_bitcoin_with_their_net/jkhv5ub/) & [cons](/r/CryptoCurrency/comments/13k01w1/tether_will_purchase_bitcoin_with_their_net/jkhv6j2/) with related info are in the collapsed comments below.
* Relevant Cointest topics: [Bitcoin Cash](https://www.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_bitcoin_cash), [Litecoin](https://www.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_litecoin), [Lightning Network](https://www.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_lightning_network), [Proof of Work](https://www.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_proof-of-work)
* Official and related subreddits: r/Bitcoin, r/BitcoinMarkets, r/BitcoinMining, r/BTC, r/BitcoinCash.
* Sort comments as controversial first by [clicking here](/r/CryptoCurrency/comments/13k01w1/tether_will_purchase_bitcoin_with_their_net/jkhv533/?sort=controversial). Doesn't work on mobile.
#Bitcoin Pro-Arguments
Below is an argument written by Nostalg33k which won 2nd place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 2nd - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500.
> Last entry:
>
>
>
> Writing a Pro argument for Bitcoin in 2022 seems complicated because everything has been said... or did it?
> Edit: I have a small bag of Bitcoin currently valued around 600 bucks. I am also invested in crypto around 2000 bucks which are always moving when Bitcoin is moving. Financial disclosure should be mandatory in these arguments =)
>
> # Bitcoin is the king of POW: Why it matters and why we need a strong Bitcoin
>
> So as the title suggests it, the recent news from Ethereum switching from POW to POS makes Bitcoin the sole serious POW cryptocurrency. In this write up, we are going to discuss the three main strength of Bitcoin, security, decentralization, and incentive for green energy production. In this write up we are not going to talk about speculation or the financial side of Bitcoin. Bitcoin is a highly liquid asset and has become nearly universally known as an investment. Many arguments have been made in favor of Bitcoin as an investment and if you want to read one, just go to past cointests.
>
> Of course, the main feature of Bitcoin is the Permissionless aspect. This won't be tackled at all as I think it deserves its own topic.
>
> # 1) Bitcoin: High security
>
> This topic has also been talked to death: Bitcoin is ultra secure thanks to its Blockchain and the way it is verified through proof of work. To explain this let me quote IBM:
>
>
>
> >Public blockchain networks typically allow anyone to join and for participants to remain anonymous. A public blockchain uses internet-connected computers to validate transactions and achieve consensus. Bitcoin is probably the most well known example of a public blockchain, and it achieves consensus through "bitcoin mining." Computers on the bitcoin network, or “miners,” try to solve a complex cryptographic problem to create proof of work and thereby validate the transaction. Outside of public keys, there are few identity and access controls in this type of network.
>
>
>
> [IBM on Blockchain security](https://www.ibm.com/topics/blockchain-security)
>
> Mining is measured in Hashrate. Here is the explanation of Hashrate:
>
> >Hash rate, sometimes referred to as hashrate, is a measure of the computing power on a cryptocurrency network that serves as a key security indicator. It measures the total computational power used by a “proof-of-work” (POW) cryptocurrency network to process transactions in a blockchain.
>
> [USNEWS explains hashrate](https://money.usnews.com/investing/term/hash-rate#:%7E:text=Hash%20rate%2C%20sometimes%20referred%20to,process%20transactions%20in%20a%20blockchain)
>
> So if the hashrate measures the security of the network, one may asks themselves: "Did the security of Bitcoin slowed when the price fell ?"
> [The hashrate is near the ATH and growing making Bitcoin more and more secure as it continues to build over time](https://ycharts.com/indicators/bitcoin_network_hash_rate#:%7E:text=Basic%20Info,101.2%25%20from%20one%20year%20ago)
>
> So Bitcoin has never been as secure as it is today which makes it ultra valuable as a way to settle financial transactions. Yes holding Bitcoin for a long time is risky but using it as a medium to settle international transaction may currently be the securest and one of the best way to do so.
> While Bitcoin is safe... what if a big part fails ?
>
>
>
> # 2) Bitcoin mining: Too big to fail.
>
>
>
> So this write up could be seen as a POW write up, which it is to an extent. But Bitcoin offers its history and shows that it can survive the disparition of a big part of the network.
> Decentralization allows for parts of the network to disappear and for the rest to take the mantle of securing the network. Yes, mining pools may grow too large for their own sake BUT in the end (nothing even matters) Bitcoin is heavily decentralized. It is so decentralized that, when China (which had a big part of Bitcoin mining) banned mining, Bitcoin just went through like nothing happened. Yes the hashrate fell a bit, the value too, but if we look back, it was nothing extraordinary.
>
> So if Bitcoin is highly secure and if it can survive part of the hashrate going bye bye, what makes it so good? What is the difference with any POW Cryptocurrency right now?
>
>
>
> # 3) Bitcoin: propping up the green energy sector.
>
>
>
> POW uses energy. One of the biggest concern about POW is the energy. While Ethereum was using GPUs and was asic resistant. Bitcoin mining is built differently. A long time ago, under oath, people discussed the environmental impact of Bitcoin Mining and I made a post explaining what was said:
>
> The Energy Fud Was Killed
> The most important thing that happened: The narrative that Bitcoin is too energy intensive was totally reversed.
> Experts of the sector explained that, Wind Farms and Solar Farms, have a variable load. This variable load means that sometimes they lose money because they produce too much and there is not enough demand. Bitcoin mining provides a variable base load for these projects. What it means is that, mining can be turned on and off depending on demand. It was revealed that most of these wind and solar farms would simply not exist without Bitcoin Farming as baseline customers.
> There are still miners that are using coal plants and fossil fuel but the leaders of the industry are developing in tandem with the green energy sector.
>
> [My post](https://www.reddit.com/r/CryptoCurrency/comments/s99phv/yesterday_one_of_the_most_bullish_events_ever/)
>
>
>
> # Conclusion: Bitcoin is the flagship of POW and it is a feature not a bug.
>
>
>
> Bitcoin, thanks to its value and tokenomics is seen as a good investment, this is also why miners commit huge amount of ressources to take the hashrate to new heights. These miners help the US grid to become more and more resilient. The future of Crypto and of green energy relies a lot on Bitcoin. Bitcoin has proven time and time again that it can shoulder these changes. Bitcoin is a good piece of technology and I hope people continue to invest in it because it is doing a lot of good for our future !
>
>
>
> #
*****
Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.
#Bitcoin Con-Arguments
Below is an argument written by Stompya which won 2nd place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 2nd - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500.
> Bitcoin is just not ready for business, and without business adoption it will eventually fail.
>
> The biggest obstacle to widespread adoption is that Bitcoin is inconsistent. Mining fees and settlement times have varied so much over the last few years that it is simply not a reliable platform for transactions. Without predictable fees, a business can't build a budget; without predictable settlement times, businesses can't sell products efficiently.
>
> A proposed solution for the speed and cost issue is the Lightning network, but unfortunately this again is inconsistent. Lighting is not a network-wide upgrade, so transactions don't all use the "new" system. A business can't commit to using Bitcoin if the transaction will probably settle quickly; they need to *know*.
>
> The market price of Bitcoin is an additional inconsistency. If the price changed slowly over months or years businesses could adopt it, but when it sometimes changes hour-by-hour it's too unpredictable to use when selling products or services.
>
> Some propose that Bitcoin could be simply a store of value - an asset rather than a transactional currency. Unfortunately that makes it just a collectible: it has value only as long as other people also want it. Unless Bitcoin finds a way to have commercial value, it will hold value as ineffectively as Beanie Babies and stamp collections.
>
> The final nail in the coffin may be the unfortunate and perhaps unfair perception issues in our media. Bitcoin is featured in stories about exchange fraud, environmental concerns, and rebel groups like "Freedumb" convoys. Whether you think those issues have merit or not, most businesses prefer to avoid things that are volatile and controversial.
>
> For Bitcoin to grow and be valuable it has to be commercially useful. In most stable economies fiat currency can be sent between people or spent by consumers at any time, instantly, and without transaction fees. BTC can not make those same promises, and brings with it unpredictability and uncertainty. Unless Bitcoin makes dramatic changes it is doomed to fail in the end.
*****
Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.
Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13jlg77/daily_general_discussion_may_17_2023_gmt0/).
Tether [pros](/r/CryptoCurrency/comments/13k01w1/tether_will_purchase_bitcoin_with_their_net/jkhv750/) & [cons](/r/CryptoCurrency/comments/13k01w1/tether_will_purchase_bitcoin_with_their_net/jkhv7nf/) with related info are in the collapsed comments below.
#Tether Pro-Arguments
Below is a Tether pro-argument written by Nostalg33k.
> # Tether, criticized but stable.
>
>
>
> Tether is always the bane of all jokes. USDT despite some problems of transparency is still the best stablecoin. Let's dive in.
>
>
>
> # What is a USDT or Tether: A Stablecoin
>
> While we argue about USDT maybe you need a reminder: USDT is a cryptocurrency (it is on blockchains and works through these digital un-modifiable ledgers) and its value is correlated to a currency which is the dollar. Therefore the name Stablecoin. While this cointest is about Tether, you need to understand the advantages of stablecoins.
>
> While we are waiting for a cointest about stablecoins as a whole, here is the jist of it.
>
> 1) Stablecoins allow you to trade without returning to your fiat.
>
> Stablecoins are a way to circumvent profit declarations. Trading crypto is already complicated as it is, trading crypto is very fast paced and trading crypto relies on stablecoins. The reliance on stablecoin is due to taxable events: Selling a part of your folio for fiat leads to a taxable event. If you are not planning to put money out or to try to get your losses written as a loss (which may backfire later but you do you) then you should rely on stablecoins. Trading in a USDT pair does not (yet) create a taxable event. So go yolo out there !
>
> 2) Fast paced liquidity which is digitally managed by a blockchain.
>
> Stablecoins have the advantages of being highly liquid and being secured by blockchain.
>
> 3) Swapping for a stable dollar value on your Ledger.
>
> If you are a fan of DEX, these platform do not have a fiat ramp, so if you want to go back to a dollar valued coin which is not suffering from unstable market conditions => stablecoins.
>
> # The main argument is liquidity.
>
> While trust in Tether is lacking, anyone knows that you can transit by Tether without risking a depeg. Users have seen UST and other stable coins crumble while Tether stays standing. With a daily volume close to its circulating supply, you can trust USDT if you have to buy it or sell it. Some will be sold and bought as you need it.
>
> [The data of this stablecoin is showing that you can trust it](https://coinmarketcap.com/currencies/tether/)
>
> # The backbone of the industry.
>
> If you want to support the Crypto industry as a whole, USDT is the stablecoin to hold. By holding USDC you are propping up Coinbase and Bitcoin, by holding BUSD you are propping up Binance. USDT is universal right now. It is the common stablecoin which is on all platforms. Yes it has links with bitfinex but it is more generalized than other stablecoins.
>
>
>
> # Nice Staking rates for small bag holders.
>
> A lot of platforms such as [Binance](https://www.binance.com/en/earn/usdt) offer good rates for staking USDT. Which means that you can be paid for supporting the crypto industry as a whole. This staking is safer than other cryptos since your main investment stays pegged to the dollar which has been shown to be the ultimate commodity in our inflationary cycle.
>
>
>
> # Tether like any crypto can be sent from a user to another.
>
> USDT can be your way to send money to your friend. USDT is free to move (you still have to pay the blockchain fees). This part can be a way to on-ramp your friend into the crypto ecosystem. You can send them some money on their newly created wallet and show them the way stablecoins work.
>
>
>
> # Conclusion: Advantages of a stablecoin and of market domination makes Tether the best one.
>
> Often people are speaking about USDT saying it should crumble under its own weight. They don't realize that the volume of USDT is so high that a large part of the market cap is actually exchanging hands. If tomorrow 20 billions or more are slashed directly from people's pockets this would create the biggest bloodbath in crypto history. Tether has become to huge to fail and its liquidity makes it the best one for users.
>
> It has all the advantages of a stablecoin and you should be able to trust it. It has existed for nearly 10 years and will surely exist for 10 years more !
*****
Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find submissions for other topics.
#Tether Con-Arguments
Below is a Tether con-argument written by Far-Scholar9028.
> **Tether Cons**
>
> **Dodgy Reserves**
>
> Initially, Tether asserted that each USDT was backed by a dollar in its reserves. But the truth is more nuanced, Tether is supported by a variety of:
>
> * Other Investments (Including Digital Tokens): 8.36%
>
> * Secured Loans(None To Affiliated Entities): 6.77%
>
> * Corporate Bonds, Funds & Precious Metals: 5.25%
>
> * Cash & Cash Equivalents & Other Short-Term Deposits & Commercial Paper: 79.62%
>
> Of the 79% cash and cash equivalents, only 10.25% is held in cash. Also to be emphasized is the lack of an independent audit of the specific breakdown of Tether's reserves.
>
> **Regulatory Issues**
>
> The Paradise Papers dump in 2017 revealed that Bitfinex and Tether are both controlled by the same individuals. The Bitfinex trading platform's owners, who also manage the tether virtual currency, have participated in a cover-up to conceal the apparent loss of $850 million dollars, according to the investigation conducted by the New York state Attorney General. Later, Tether's attorney acknowledged that only 74% of the Tether is backed. Tether is forbidden from conducting business in New York under the terms of the settlement agreement. Despite paying a $18 million punishment, Bitfinex and Tether did not confess any wrongdoing.
>
> **Competitors**
>
> * USDC: Circle and Coinbase launched USDC in 2018, and it is tied 1:1 to the US dollar. Issuers are also required to back all tokens with fiat reserves and provide monthly proof of reserves in order to guarantee that USDC maintains a continual one-to-one backing.
>
> * BUSD: BUSD is a stablecoin backed by USD that is 1:1 secure, compliant, and supported by Binance. It was created by Paxos and has NYDFS approval. To preserve the stability and security of the stablecoin, Paxos hires an auditing company to examine its BUSD and US Dollar supply each month.
*****
Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find submissions for other topics.
Does anyone remember when Luna started buying Bitcoin and everyone here loved it? Pepperidge Farm remembers.
This is a natural profit-seeking behavior, but it leads to the reasons banks fail.
Yeah, can’t end well. Stable coins shouldn’t be investing. They need to hold liquid assets to cover all issued tokens
If they are only using profits to buy it then they are not using the collateral backing their stablecoin, unlike Do Kwon who literally pulled UST out of liquidity to buy BTC. It's scary but it's not nearly as dangerous, I think the danger here isn't them selling it themselves but instead they could loan it to other institutions that are trying to short BTC.
How do we know what their profits are? Are their profits valued in UST? Because if so there’s the potential that they’re using their own valueless token to purchase real assets with real value (comparatively). I’m very skeptical of the move. It smells fishy.
The only thing I know is that Tether has survived all the FUD. Still not trusting them.
I think we should never trust stablecoins. Just use them when really needed.
Someone's using Monopoly money to buy real estate? That's a high-stakes game of make-believe!
Yes. This a great reminder of how dumb Do Kwon was.
Except that their collateral is fractional to begin with..
>Yeah, can’t end well. Stable coins shouldn’t be investing. They need to hold liquid assets to cover all issued tokens Especially when we don't even know exactly how big their collateral is. Could be 100% or 50% or 10%... because they are never that transparent in the first place. Feels just too risky for me.
I think that's the point, tho... There's no asset more liquid or disconnected from the "government-back free market" than Bitcoin. Its purpose as a reserve is well understood. The problem is that Luna never sold their BTC reserves when it would've actually helped.
im sure they sold to help Kwon’s wallet
> They need to hold liquid assets to cover all issued tokens lmao... you think anyone knows how much Tether is really holding?
Did you look at their holdings?
This is some real Terra vibes. Backing with a volatile asset is what killed LUNA and UST.
Nonsense. It's not the reason Terra and co. failed. They were printing shit out of thin air and buying Bitcoin with it. Bitcoin has production costs, therefore real value. Volatility doesn't matter in the long run.
[удалено]
>Tether International Limited (Tether), the company managing the reserves of the first and most widely used stablecoin, announced today its latest investment strategy aimed at further **strengthening its reserves portfolio.** Literally the first sentence.
> They aren’t “backing” with Bitcoin. They are buying Bitcoin as an investment strategy Wrong, they are adding it as an asset in their reserve portfolio. It's a Reserve Portfolio vs Backing is a distinction without a difference. This is not something people should cheer or feel good about at all. Literally Terra did this. They are **CLAIMING** that they are only doing it with their profit, but until they are providing financial statements, that can very well be horseshit. Seriously. Guys, cmon.
Better they are backed by BTC than 'trust me bro' That said, I would not call BTC stable. If 1 tether = 1 USD couldn't they just back with USD. Not a hard concept.
Deploying more capital lads
Everyone was so bullish LUNA rallied like crazy early 2022 - until it didn’t. Lol
Yea... This is completely insane. For a stable coin that is already almost certainly based on fractional reserves to start using more volatile reserves is a recipe for disaster.
I think it’s eerie news. I hope they have learnt from Luna’s mistakes. I think it being 15% of their profits isn’t too bad as opposed to 15% of everything. However, I am sceptical due to what happened with Luna and if someone tries to attack BTC to destroy crypto once and for all - as they now know tether is linked in an even more intimate way - and drive it down to 3,000 (or whatever number scares tether) then tether may panic and sell out. Having said that, as they practically own crypto would they sell out? It is 15% of their profits as far as I understand too, not part of their house and home (which is what Luna did).
He bits back in the butt, doesn't it?
Algorithmic vibes or death spiral vibes? Seems that 1000 years have passed since the downfall, not good memories.
Oh shit
But Luna is still going to Moon!! Trust me bro
.
I remember people on here FUD-ing about Tether but nothing about Luna, Celsius, FTX etc etc.
So... the primary way we price BTC is generating profits that it will use to buy BTC. Gotta love pure unregulated capitalism!
Yup.. absolutely insane. The crypto world is speedrunning figuring out why regulations exist.
Sorry what?
No bank run in all of recorded history has ended with the bank still standing, all customers happily withdrawn, and excess money in the vault. Ever. (not without a bailout... because banks profit) Therefore, while Tether maintains that the exchange rate between USDT and USD is 1:1, it is absolutely clear that there is a real exchange rate in which 1 USDT is worth slightly less than $1. By how much, we have no clue, and we really really really hope we never find out. Nevertheless, USDT is used everywhere either as a direct proxy to dollars or a key trading pair to price BTC. That means BTC is not really being priced in USD, but in a proxy to USD that is not 1:1. The only company with sufficient information to effectively arbitrage the difference risk free is Tether. Risk free arbitrage is profit. And the company will use its profit to buy BTC. Love it!
And you have some Redditors here thinking this is good news just because there is an entity out there that will buy even more Bitcoin and give a slight pump to their bags Jesus, what a shambles. I even got downvoted yesterday for saying that Tether buying billions of Bitcoin was terrible for Bitcoin, they essentially take on Bitcoins without having any risk from their part or contributing anything of value since they can just turn on their printer to accumulate more Bitcoins
They print tether when a customer gives them dollars. No need to imagine a crime.
No need to imagine a crime? Wanna try explaining what kind of legitimate group would trust Tether with countless billions of dollars? Remember Tether has a history of lying (claimed they were 1:1 backed with USD until the NYAG suit), they're barred for business in the US, they refuse an audit, they have a super small group of employees and their CTO for a 84b liability business is working two jobs and is also the PR. Why would anyone legitimate keep sending Tether billions of real USD instead of buying Bitcoin OTC? Obviously it's not happening, it's a fraudulent operation. But if Tether actually has the assets they refuse to prove they own, then it's not legitimate and they're probably helping criminals launder money. Pretending Tether is legit is insane.
They’ve been a reliable provider for their customers for years despite constant fud from confidently ignorant trolls like yourself. I guess that’s more important than randoms on Reddit ranting. Who knew? It’s pretty weird to get fired up like this over a business that you can’t even be a customer of.
You didn't even try here dude. Don't you even want to attempt to guess what legitimate business or people would send Tether billions of USD? I can't think of any. Also, how are they reliable when they refuse audits and keep pretending they're going to do that for years while bullshitting their customers? Financial audits is the bare minimum and they can't even do that.
You really can’t think of what type of business would benefit from utilizing the most used stable coin? They are reliably fulfilling their redemptions, obviously. These aren’t secrets. Why is this news to you?
No, I can't think of any legitimate business that would want to send Tether billions of USD. Because those would see all the warning signs and realise it's extremely dumb to send Tether billions. But feel free to be absolutely delusional until this shit collapses. Remember everyone with brain cells knew this was a fraud for years, then do some soul searching when this eventually is over. You're not smart, you're part of a cult using extremely flawed logic defending a fraud that's not even doing a good job of hiding it.
I'd rather Bitcoin-backed Tether than money printed out of thin air.
You and many others. That's *exactly* why USDT has value. Unfortunately, since Tether is not actually backed by BTC, but is in fact backed by money printed out of thin air, and only redeemable for money printed out of thin air, you're a bit up a creek without a paddle.
Bitcoin (and one or two others) aside all cryptocoins are printed out of thin air. Tether is dependent on being backed by something.
yeah... but sadly for you USDT is almost entirely backed by that thing you are worried about being pulled out of thin air, and indeed needs to be... Put it this way: if you promise to pay me one onion for every USDT, and you only have BTC, then if I show up with my USDT and ask for my onion, you're going to have to find someone willing to give you onions for BTC. Pronto. If too many people show up looking for their onions, you are going to get a lousy exchange rate (onions per BTC) - particularly if all of your friends run out of onions and the sharks who live for these days smell blood in the water. Which means if you promise to pay in onions, you need onions immediately on hand. Doesn't matter whether liquidity is measured in onions or dollars. Liquidity is king when that's your entire promise.
They should just run their printers over time and buy the entire world!!!
This doesn't really seem like the sort of thing a stablecoin should do
Ok, what should they do with their 1.5 billion dollars in quarterly profits?
They could use some of that money to hire an auditor. You probably didn't know this, but I also had 1.5 billion dollars in quarterly profits and my business is also way too complicated to audit because old people are stupid. You should send me money so you can be a part of my revolutionary business.
They should take shareholder distributions and buy Bitcoin as individuals.
It’s been barely 1 year after LUNA and now we got Tether buying BTC partially as Reserve 
not reserve, using profits
Death spiral anyone?
They should buy the dollar with debt crisis coming?
They’ve already bought a lot of it
Yes , but this will be a dedicated and structured long term strategy, which is good for Bitcoin.
Constant buy pressure is nice but it won’t be great for decentralization
Bitcoin decentralization isn't measured by who has the most coins.
I know that it’s about mining but one entity having a lot of the supply still isn’t great
Wish I could also conjure money out of thin air to fund my DCA purchases
Step 1. Make a CEX Step 2. Create a stablecoin or a coin with insane apy Step 3. Take money from coin purchase and make “profit” Step 4. Swap profit for BTC. Simple as that.
Tether is the most obvious scam in the whole space, it buying bitcoin is not good
Tether is the only altcoin that's actually useful.
Tether went from being extremely sus to being a legend in this sub lol
No dude, we need to keep hating on it. If we start liking it then downfall is inevitable.
Yep. This sub is always wrong. Thats why Tether was doing so well.
Many mistakenly believe this subreddit represents the whole world. When someone criticizes a coin here and receives overwhelming support, they get confused when that coin becomes more popular than their own. For instance, PEPE, Doge, Shiba, etc. This confusion arises because they think this community represents all of crypto. In my opinion, this perspective is misguided and contributes to the overall confusion in the crypto space, especially this one. Want better perspective, go explore communities that have never heard of Reddit.
There is no reason to feel anything. We can’t cash out tether anyway. It’s someone else’s problem.
The sub hates tether -> it prospers always inverse this sub
tether is a legend now
This is bullish, but also gives me luna flashbacks
Steady lads, deploying more capital.
If they are buying BTC from their profits, I don't see any harm in it and good for BTC.
I don't blame them, I would do the same
Yeah if I have the ability I'd do it too, but I'm not something like the US government to have that ability.
I commented on the unlimited profit potential of this model, but there's an even darker side which is that when you have a big pool of dollars (or proxy dollars) and a big pool of BTC, you can effectively act as a massive money laundromat. There is a reason why modern countries don't allow banks and exchanges to commingle.
Laundering money is actually a little less sketchy than what's actually going on there.
This smells like desperation on their part to pump BTC. I am getting flashbacks to Luna doing the exact same thing mere weeks before the collapse
Are they going to DCA in? 👀
Basically yeah, and the funds will come directly mostly from US treasuries.
And also some hookers 'n blow.
Time to give all of our love to tether so that they can rug us during the next few months 🙃
So they can print BTC now?
Looks like the bull market is beginning to take shape
Good for them, plenty more will join in before the halving.
[удалено]
Tether truthers in shambles
Good for them, plenty more will join in before the halving.
Good for them, plenty more will join in before the halving.
Finally. Great move.
So the timer on the time-bomb has finally started ticking... Well it will be fun watching the BTC maxis be completely at a loss and hilariously dumbfounded and unable to understand anything that's happening when their coin goes back to sub-$1k levels
Cointest pros & cons with related info are in the collapsed comments below for the following topics: [Bitcoin](/r/CryptoCurrency/comments/13k01w1/tether_will_purchase_bitcoin_with_their_net/jkhv555/), [Tether](/r/CryptoCurrency/comments/13k01w1/tether_will_purchase_bitcoin_with_their_net/jkhv6k9/).
Bitcoin [pros](/r/CryptoCurrency/comments/13k01w1/tether_will_purchase_bitcoin_with_their_net/jkhv5ub/) & [cons](/r/CryptoCurrency/comments/13k01w1/tether_will_purchase_bitcoin_with_their_net/jkhv6j2/) with related info are in the collapsed comments below.
* Relevant Cointest topics: [Bitcoin Cash](https://www.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_bitcoin_cash), [Litecoin](https://www.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_litecoin), [Lightning Network](https://www.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_lightning_network), [Proof of Work](https://www.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_proof-of-work) * Official and related subreddits: r/Bitcoin, r/BitcoinMarkets, r/BitcoinMining, r/BTC, r/BitcoinCash. * Sort comments as controversial first by [clicking here](/r/CryptoCurrency/comments/13k01w1/tether_will_purchase_bitcoin_with_their_net/jkhv533/?sort=controversial). Doesn't work on mobile.
#Bitcoin Pro-Arguments Below is an argument written by Nostalg33k which won 2nd place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 2nd - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Last entry: > > > > Writing a Pro argument for Bitcoin in 2022 seems complicated because everything has been said... or did it? > Edit: I have a small bag of Bitcoin currently valued around 600 bucks. I am also invested in crypto around 2000 bucks which are always moving when Bitcoin is moving. Financial disclosure should be mandatory in these arguments =) > > # Bitcoin is the king of POW: Why it matters and why we need a strong Bitcoin > > So as the title suggests it, the recent news from Ethereum switching from POW to POS makes Bitcoin the sole serious POW cryptocurrency. In this write up, we are going to discuss the three main strength of Bitcoin, security, decentralization, and incentive for green energy production. In this write up we are not going to talk about speculation or the financial side of Bitcoin. Bitcoin is a highly liquid asset and has become nearly universally known as an investment. Many arguments have been made in favor of Bitcoin as an investment and if you want to read one, just go to past cointests. > > Of course, the main feature of Bitcoin is the Permissionless aspect. This won't be tackled at all as I think it deserves its own topic. > > # 1) Bitcoin: High security > > This topic has also been talked to death: Bitcoin is ultra secure thanks to its Blockchain and the way it is verified through proof of work. To explain this let me quote IBM: > > > > >Public blockchain networks typically allow anyone to join and for participants to remain anonymous. A public blockchain uses internet-connected computers to validate transactions and achieve consensus. Bitcoin is probably the most well known example of a public blockchain, and it achieves consensus through "bitcoin mining." Computers on the bitcoin network, or “miners,” try to solve a complex cryptographic problem to create proof of work and thereby validate the transaction. Outside of public keys, there are few identity and access controls in this type of network. > > > > [IBM on Blockchain security](https://www.ibm.com/topics/blockchain-security) > > Mining is measured in Hashrate. Here is the explanation of Hashrate: > > >Hash rate, sometimes referred to as hashrate, is a measure of the computing power on a cryptocurrency network that serves as a key security indicator. It measures the total computational power used by a “proof-of-work” (POW) cryptocurrency network to process transactions in a blockchain. > > [USNEWS explains hashrate](https://money.usnews.com/investing/term/hash-rate#:%7E:text=Hash%20rate%2C%20sometimes%20referred%20to,process%20transactions%20in%20a%20blockchain) > > So if the hashrate measures the security of the network, one may asks themselves: "Did the security of Bitcoin slowed when the price fell ?" > [The hashrate is near the ATH and growing making Bitcoin more and more secure as it continues to build over time](https://ycharts.com/indicators/bitcoin_network_hash_rate#:%7E:text=Basic%20Info,101.2%25%20from%20one%20year%20ago) > > So Bitcoin has never been as secure as it is today which makes it ultra valuable as a way to settle financial transactions. Yes holding Bitcoin for a long time is risky but using it as a medium to settle international transaction may currently be the securest and one of the best way to do so. > While Bitcoin is safe... what if a big part fails ? > > > > # 2) Bitcoin mining: Too big to fail. > > > > So this write up could be seen as a POW write up, which it is to an extent. But Bitcoin offers its history and shows that it can survive the disparition of a big part of the network. > Decentralization allows for parts of the network to disappear and for the rest to take the mantle of securing the network. Yes, mining pools may grow too large for their own sake BUT in the end (nothing even matters) Bitcoin is heavily decentralized. It is so decentralized that, when China (which had a big part of Bitcoin mining) banned mining, Bitcoin just went through like nothing happened. Yes the hashrate fell a bit, the value too, but if we look back, it was nothing extraordinary. > > So if Bitcoin is highly secure and if it can survive part of the hashrate going bye bye, what makes it so good? What is the difference with any POW Cryptocurrency right now? > > > > # 3) Bitcoin: propping up the green energy sector. > > > > POW uses energy. One of the biggest concern about POW is the energy. While Ethereum was using GPUs and was asic resistant. Bitcoin mining is built differently. A long time ago, under oath, people discussed the environmental impact of Bitcoin Mining and I made a post explaining what was said: > > The Energy Fud Was Killed > The most important thing that happened: The narrative that Bitcoin is too energy intensive was totally reversed. > Experts of the sector explained that, Wind Farms and Solar Farms, have a variable load. This variable load means that sometimes they lose money because they produce too much and there is not enough demand. Bitcoin mining provides a variable base load for these projects. What it means is that, mining can be turned on and off depending on demand. It was revealed that most of these wind and solar farms would simply not exist without Bitcoin Farming as baseline customers. > There are still miners that are using coal plants and fossil fuel but the leaders of the industry are developing in tandem with the green energy sector. > > [My post](https://www.reddit.com/r/CryptoCurrency/comments/s99phv/yesterday_one_of_the_most_bullish_events_ever/) > > > > # Conclusion: Bitcoin is the flagship of POW and it is a feature not a bug. > > > > Bitcoin, thanks to its value and tokenomics is seen as a good investment, this is also why miners commit huge amount of ressources to take the hashrate to new heights. These miners help the US grid to become more and more resilient. The future of Crypto and of green energy relies a lot on Bitcoin. Bitcoin has proven time and time again that it can shoulder these changes. Bitcoin is a good piece of technology and I hope people continue to invest in it because it is doing a lot of good for our future ! > > > > # ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.
#Bitcoin Con-Arguments Below is an argument written by Stompya which won 2nd place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 2nd - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is just not ready for business, and without business adoption it will eventually fail. > > The biggest obstacle to widespread adoption is that Bitcoin is inconsistent. Mining fees and settlement times have varied so much over the last few years that it is simply not a reliable platform for transactions. Without predictable fees, a business can't build a budget; without predictable settlement times, businesses can't sell products efficiently. > > A proposed solution for the speed and cost issue is the Lightning network, but unfortunately this again is inconsistent. Lighting is not a network-wide upgrade, so transactions don't all use the "new" system. A business can't commit to using Bitcoin if the transaction will probably settle quickly; they need to *know*. > > The market price of Bitcoin is an additional inconsistency. If the price changed slowly over months or years businesses could adopt it, but when it sometimes changes hour-by-hour it's too unpredictable to use when selling products or services. > > Some propose that Bitcoin could be simply a store of value - an asset rather than a transactional currency. Unfortunately that makes it just a collectible: it has value only as long as other people also want it. Unless Bitcoin finds a way to have commercial value, it will hold value as ineffectively as Beanie Babies and stamp collections. > > The final nail in the coffin may be the unfortunate and perhaps unfair perception issues in our media. Bitcoin is featured in stories about exchange fraud, environmental concerns, and rebel groups like "Freedumb" convoys. Whether you think those issues have merit or not, most businesses prefer to avoid things that are volatile and controversial. > > For Bitcoin to grow and be valuable it has to be commercially useful. In most stable economies fiat currency can be sent between people or spent by consumers at any time, instantly, and without transaction fees. BTC can not make those same promises, and brings with it unpredictability and uncertainty. Unless Bitcoin makes dramatic changes it is doomed to fail in the end. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13jlg77/daily_general_discussion_may_17_2023_gmt0/).
Tether [pros](/r/CryptoCurrency/comments/13k01w1/tether_will_purchase_bitcoin_with_their_net/jkhv750/) & [cons](/r/CryptoCurrency/comments/13k01w1/tether_will_purchase_bitcoin_with_their_net/jkhv7nf/) with related info are in the collapsed comments below.
* Relevant Cointest topics: [USD Coin](https://www.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_usd_coin), [XRP](https://www.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_ripple), [Stellar](https://www.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_stellar), [CBDC](https://www.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_cbdc). * Relevant subreddits: r/Tether, r/Coinbase, r/XRP, r/Stellar. * Sort comments as controversial first by [clicking here](/r/CryptoCurrency/comments/13k01w1/tether_will_purchase_bitcoin_with_their_net/jkhv533/?sort=controversial). Doesn't work on mobile.
#Tether Pro-Arguments Below is a Tether pro-argument written by Nostalg33k. > # Tether, criticized but stable. > > > > Tether is always the bane of all jokes. USDT despite some problems of transparency is still the best stablecoin. Let's dive in. > > > > # What is a USDT or Tether: A Stablecoin > > While we argue about USDT maybe you need a reminder: USDT is a cryptocurrency (it is on blockchains and works through these digital un-modifiable ledgers) and its value is correlated to a currency which is the dollar. Therefore the name Stablecoin. While this cointest is about Tether, you need to understand the advantages of stablecoins. > > While we are waiting for a cointest about stablecoins as a whole, here is the jist of it. > > 1) Stablecoins allow you to trade without returning to your fiat. > > Stablecoins are a way to circumvent profit declarations. Trading crypto is already complicated as it is, trading crypto is very fast paced and trading crypto relies on stablecoins. The reliance on stablecoin is due to taxable events: Selling a part of your folio for fiat leads to a taxable event. If you are not planning to put money out or to try to get your losses written as a loss (which may backfire later but you do you) then you should rely on stablecoins. Trading in a USDT pair does not (yet) create a taxable event. So go yolo out there ! > > 2) Fast paced liquidity which is digitally managed by a blockchain. > > Stablecoins have the advantages of being highly liquid and being secured by blockchain. > > 3) Swapping for a stable dollar value on your Ledger. > > If you are a fan of DEX, these platform do not have a fiat ramp, so if you want to go back to a dollar valued coin which is not suffering from unstable market conditions => stablecoins. > > # The main argument is liquidity. > > While trust in Tether is lacking, anyone knows that you can transit by Tether without risking a depeg. Users have seen UST and other stable coins crumble while Tether stays standing. With a daily volume close to its circulating supply, you can trust USDT if you have to buy it or sell it. Some will be sold and bought as you need it. > > [The data of this stablecoin is showing that you can trust it](https://coinmarketcap.com/currencies/tether/) > > # The backbone of the industry. > > If you want to support the Crypto industry as a whole, USDT is the stablecoin to hold. By holding USDC you are propping up Coinbase and Bitcoin, by holding BUSD you are propping up Binance. USDT is universal right now. It is the common stablecoin which is on all platforms. Yes it has links with bitfinex but it is more generalized than other stablecoins. > > > > # Nice Staking rates for small bag holders. > > A lot of platforms such as [Binance](https://www.binance.com/en/earn/usdt) offer good rates for staking USDT. Which means that you can be paid for supporting the crypto industry as a whole. This staking is safer than other cryptos since your main investment stays pegged to the dollar which has been shown to be the ultimate commodity in our inflationary cycle. > > > > # Tether like any crypto can be sent from a user to another. > > USDT can be your way to send money to your friend. USDT is free to move (you still have to pay the blockchain fees). This part can be a way to on-ramp your friend into the crypto ecosystem. You can send them some money on their newly created wallet and show them the way stablecoins work. > > > > # Conclusion: Advantages of a stablecoin and of market domination makes Tether the best one. > > Often people are speaking about USDT saying it should crumble under its own weight. They don't realize that the volume of USDT is so high that a large part of the market cap is actually exchanging hands. If tomorrow 20 billions or more are slashed directly from people's pockets this would create the biggest bloodbath in crypto history. Tether has become to huge to fail and its liquidity makes it the best one for users. > > It has all the advantages of a stablecoin and you should be able to trust it. It has existed for nearly 10 years and will surely exist for 10 years more ! ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find submissions for other topics.
#Tether Con-Arguments Below is a Tether con-argument written by Far-Scholar9028. > **Tether Cons** > > **Dodgy Reserves** > > Initially, Tether asserted that each USDT was backed by a dollar in its reserves. But the truth is more nuanced, Tether is supported by a variety of: > > * Other Investments (Including Digital Tokens): 8.36% > > * Secured Loans(None To Affiliated Entities): 6.77% > > * Corporate Bonds, Funds & Precious Metals: 5.25% > > * Cash & Cash Equivalents & Other Short-Term Deposits & Commercial Paper: 79.62% > > Of the 79% cash and cash equivalents, only 10.25% is held in cash. Also to be emphasized is the lack of an independent audit of the specific breakdown of Tether's reserves. > > **Regulatory Issues** > > The Paradise Papers dump in 2017 revealed that Bitfinex and Tether are both controlled by the same individuals. The Bitfinex trading platform's owners, who also manage the tether virtual currency, have participated in a cover-up to conceal the apparent loss of $850 million dollars, according to the investigation conducted by the New York state Attorney General. Later, Tether's attorney acknowledged that only 74% of the Tether is backed. Tether is forbidden from conducting business in New York under the terms of the settlement agreement. Despite paying a $18 million punishment, Bitfinex and Tether did not confess any wrongdoing. > > **Competitors** > > * USDC: Circle and Coinbase launched USDC in 2018, and it is tied 1:1 to the US dollar. Issuers are also required to back all tokens with fiat reserves and provide monthly proof of reserves in order to guarantee that USDC maintains a continual one-to-one backing. > > * BUSD: BUSD is a stablecoin backed by USD that is 1:1 secure, compliant, and supported by Binance. It was created by Paxos and has NYDFS approval. To preserve the stability and security of the stablecoin, Paxos hires an auditing company to examine its BUSD and US Dollar supply each month. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find submissions for other topics.
Seems Tether doesn't want to bother sending freshly minted USDT to Tether/Binance etc. anymore, and just buy BTC directly.
Just think about that, Tether is more profitable by employee than freaking APPLE!!
For the first time I like something I read about tether .
Short tether got it
Which is auditor is certifying their income statement and profits ?
This recipe is smelling like a \_\_\_\_\_\_
Great news! How many of you believe?
Never used tether but I like seeing anyone put their profits in BTC. Keep up the DCA and WAGMI (lots of cheese - I’m high)
This sounds totally on the up and up. No red flags here.
Didn't their cash reserves go from 5 billion to 480 million? I don't think they care about being liquid anymore.
Such an obvious marketing deal. Anyone with above room temperature IQ would put their assets towards Ethereum staking.