Breakdown of Tether reserves: + 76.0% for cash and cash equivalents + 12.5% for secured loans + 10.0% for precious metals + 1.6% for other investments including Bitcoin (source: Tether_to)
Prompt: “Now ask this question: What does your cash support at banks? It turns out to be hard to answer. “
This created a flow of confusion. “If … then … other questions …”
The 65% of that 76% are commercial papers, which is not the equivalent of cash even on Tether’s chart. It is entirely possible to find out what “supports” your cash in banks. Unlike Tether, banks create audited accounts including full balance sheets.
Commercial paper is not a bond. It is a money market instrument.
In general, I am skeptical of anyone who ignores the obvious problem of tethered printing money that doesn’t exist and instead tries to make the conversation irrelevant, such as: – The Fed – Fiat currency – Banks.
And these are just sample answers. Dan Held, the Bitcoin attorney, came to the rescue of Tether with his statement.
He has published a detailed support titled “Don’t Fear Tether”. This was published somewhere around January 2021.
Held announced that he would not publish a 40-page report on the matter as none of the users were convinced.
However, he cited: “The amount of energy needed to refute bullshit is an order of magnitude greater than to produce it. – Brandolini’s Law. “
It has the purpose of Tether, the fundamentals of how crypto markets work, the claims, Tether is a fractional reserve / unchecked, Tether is used to pump Bitcoin, which actually destroys Tether collapse – DeFi, and much has survived on Bitcoin worse.
So if you want a detailed reading, you should read “The HELD Report”.
Released in relation to Fractional Reserve Dan Held; “This claim has a certain legitimacy. We know that Tether was partially hedged for a period of time (April 2019) when Bitfinex borrowed $ 850,000,000 to cover a fraud hole by one of their payment processors. “
Regarding the exam he published: “Many are rightly demanding that Tether conduct regular exams. However, this is more difficult than it sounds. The problem is, no reputable (aka Big 4) accounting firm would take them as clients. So it is a chicken and egg problem not to be audited, but no one is ready to audit them. And those accounting firms that would be open to their audit would not trust the FUD people of the audit. “
Regardless of who has what to say, Paolo Ardoino says: “Indeed” 100% support. Period! “Is epic.”
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