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1/9
I hope someone here can help me get my head around this. If I remember it correctly #Tether used to be 100% backed by an equal number of U.S. #dollars in reserve.
#USDT is no longer officially backed by 100% #USD.
As you can read on their website it states that:
I hope someone here can help me get my head around this. If I remember it correctly #Tether used to be 100% backed by an equal number of U.S. #dollars in reserve.
#USDT is no longer officially backed by 100% #USD.
As you can read on their website it states that:
2/9
#Tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”)
#Tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”)
3/9
According to their own “Transparency update” a.k.a. “Proof of Funds”. The law firm Freeh, Sporkin & Sullivan LLP ("FSS”) last checked #Tether's assets on the 1st of June 2018.
The parts that I am interested in:
According to their own “Transparency update” a.k.a. “Proof of Funds”. The law firm Freeh, Sporkin & Sullivan LLP ("FSS”) last checked #Tether's assets on the 1st of June 2018.
The parts that I am interested in:
4/9
“ #cash equivalents”:
Low-risk securities that include U.S. government T-bills, bank CDs, bankers' acceptances, corporate commercial paper, and other #money market instruments.
“ #cash equivalents”:
Low-risk securities that include U.S. government T-bills, bank CDs, bankers' acceptances, corporate commercial paper, and other #money market instruments.
5/9
“may include other #assets”:
Resources with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit.
“may include other #assets”:
Resources with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit.
6/9
“receivables from loans made by #Tether to third parties":
Receivables, also referred to as accounts receivable, are debts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.
“receivables from loans made by #Tether to third parties":
Receivables, also referred to as accounts receivable, are debts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.
7/9
To me, this sounds a lot like fractional reserve banking, but since the dollars used to obtain #Tether were already part of fractional reserve banking, this is more like fractional reserve banking on top of fractional reserve banking.
To me, this sounds a lot like fractional reserve banking, but since the dollars used to obtain #Tether were already part of fractional reserve banking, this is more like fractional reserve banking on top of fractional reserve banking.
8/9
Fractional reserve #banking — for those new to the concept — is a system in which only a fraction of bank deposits are backed by actual #cash on hand and available for withdrawal.
Fractional reserve #banking — for those new to the concept — is a system in which only a fraction of bank deposits are backed by actual #cash on hand and available for withdrawal.
9/9
The way I read this #USDT could even be backed by other #cryptocurrencies.
I would love to get your 2-cents on this: @galgitron @MoonLamboio @WorkingMoneyCH @Kevin_Cage_ @cryptopolis_x @XRP_OWL @HamEggsnSam
The way I read this #USDT could even be backed by other #cryptocurrencies.
I would love to get your 2-cents on this: @galgitron @MoonLamboio @WorkingMoneyCH @Kevin_Cage_ @cryptopolis_x @XRP_OWL @HamEggsnSam
