Tether, which claimed at launch that each tether was backed 1:1 with USD, releases a breakdown of its reserves, revealing that only 3.87% are in actual cash
Quick Take — Stablecoin issuer Tether has revealed a breakdown of its reserves. — As of March 31, 2021 …
Related Coverage
- Tether says its reserves are backed by cash to the tune of . . . 2.9% Financial Times · Jemima Kelly
- View article Protocol
- Tether publishes ... two pie charts of its reserves Attack of the 50 Foot … · David Gerard
- Tether releases its reserve breakdown and only 3.87% is US dollars SiliconANGLE · Duncan Riley
- Tether (Finally) Releases Breakdown Of Its $42 Billion In Crypto Reserves Forbes · Nicholas Gans
Discussion
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@silvermanjacob
Jacob Silverman
on x
Tether, the most highly traded cryptocurrency by volume, released a legally mandated breakdown of its reserves. Only 3.87% — with $42b+ Tether in circulation at the time — is cash. The company once claimed that all Tether was backed 1:1 with cash. https://www.theblockcrypto.com/ …
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@ahcastor
Amy Castor
on x
Tether is operating as a bank without any of the oversight of a bank. And now it has nearly no cash left. When are the regulators going to step in and do something? https://www.ft.com/...
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@b_eichengreen
Barry Eichengreen
on x
So it turns out that stablecoin Tether is backed by only 3% liquid cash reserves. https://www.theblockcrypto.com/ ... But we already “knew” that: see https://www.theguardian.com/ ... Can you say “speculative attack”? https://www.nber.org/...
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@patio11
Patrick McKenzie
on x
I once wrote “Tether is the internal accounting system for the largest fraud since Madoff.” This breakdown of assets “backing” it does not cause me to update in their favor. https://www.kalzumeus.com/... https://twitter.com/...
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@mark_dow
Dow
on x
How big a deal is this? #Bitcoin https://twitter.com/...
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@fxflow
Boris Schlossberg
on x
A crypto that lies to you. Imagine that! https://twitter.com/...
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@charlesarthur
Charles Arthur
on x
The Big Short Crypto (And as Jacob notes later, it's actually only 2.9% that's real cash-you-can-take-to-the-bank.) A “currency” whose reserves don't equal its capitalisation. For all the talk about fiat currencies printing on demand, this is just the same. But unguaranteed. http…
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@carnage4life
Dare Obasanjo
on x
A reminder that key parts of the cryptocurrency market are blatantly fraudulent but everyone pretends otherwise because they're making money and assume some other sucker will be left holding the bag. If you sit at a poker table and you can't tell who the sucker is then it's you. …