Another stunt to deflect attention from the fact that their IOU isn't backed 1:1 and is absolute garbage.
How many of you will still think it's good news when Tether implodes? They're only prolonging the inevitable. All scams come to an end sooner or later.
The clue is in the part where they have "net profit" from which to invest. Tether is a money-making scheme, not money itself.
Topic: [2023-05-17] CNBC: Tether buys bitcoin with a portion of its net profit to ... (Read 121 times)
May 19, 2023, 01:26:33 PM
May 19, 2023, 11:31:53 AM
(...) and contribute to the recovery of the Bitcoin market positively as well.
If true, it will contribute positively, but the effect of such contribution will unlikely be significant. First of all, they'll be aiming to buy at the best available price, so they won't be dumping all that $200m all at once, but probably do it in tranches and/or make an OTC purchase. Second of all, the US government is reported to dump a huge amount of bitcoins (seized from the SilkRoad "hacker") this calendar year. I can't remember how much was it exactly, but it was over $1 billion worth (they'll dump it in batches), so that $200m won't even fully counter balance the fed's dump.
May 19, 2023, 10:55:36 AM
Let's see. $222 M seems like a massive amount, but in regards of total Tether value it's just a drop on a hot stone.
If purchases like this happen a few more times they may become more relevant.
If you think of it in economical terms, it becomes quite a mess, though. The whole crypto market got inflated at least to some degree by stable-coins. Them now investing back into Bitcoin is in a way similar to giving yourself a loan to buy more loans. Just an observation.
If purchases like this happen a few more times they may become more relevant.
If you think of it in economical terms, it becomes quite a mess, though. The whole crypto market got inflated at least to some degree by stable-coins. Them now investing back into Bitcoin is in a way similar to giving yourself a loan to buy more loans. Just an observation.
May 19, 2023, 09:56:18 AM
That's a really awesome news to hear because I believe that the step will cause a good bullish reaction in Bitcoin and it might be the first step towards the next bull run. I think the deal is beneficial for Bitcoin because it's currently not pumping the way we all expected it to pump. However, things can be different with this purchasing.
When the Tether buys that much worth of Bitcoin the pump is almost a guaranteed thing and investors might begin adopting Bitcoin once again after the bear run. The things will be really good in Bitcoin-sphere and it might help other altcoins to pump as well.
I believe that the deal will be beneficial for Tether as well because they will have more Bitcoin in their reserve thus investors won't fear about its failure as the other stable coins have gone through. The UST de-pegging has taken away interest of many investors from stable coins, as all of them now think that stable coins can be de-pegged and as a result they will lose their investment. This step can be a useful step to remove that fear from the hearts of those investors.
May 19, 2023, 12:05:43 AM
Yes, I heard this news already, I think it is good news for both parties, Tether and Bitcoin as well. Buying Bitcoin and diversifying reserves will increase confidence in Tether and contribute to the recovery of the Bitcoin market positively as well.
May 17, 2023, 02:01:22 PM
Fresh article from the mainstream from today about USDT announcing they'll be buying >$200 million worth of bitcoins to diversify their reserves.
Sounds bullish, but not sure how believable they are.
Tether buys bitcoin with a portion of its net profit to back USDT stablecoin
https://www.cnbc.com/2023/05/17/tether-buys-222-million-worth-of-bitcoin-to-back-its-usdt-stablecoin.html
Sounds bullish, but not sure how believable they are.
Tether buys bitcoin with a portion of its net profit to back USDT stablecoin
https://www.cnbc.com/2023/05/17/tether-buys-222-million-worth-of-bitcoin-to-back-its-usdt-stablecoin.html
Quote
Cryptocurrency giant Tether on Wednesday said that it’s going to purchase hundreds of millions of dollars’ worth of bitcoin to back the world’s largest stablecoin.
The company said it would invest 15% of its net profit into bitcoin to “diversify” the reserves that back its USDT token, which aims to stick to a 1-to-1 peg to the U.S. dollar.
That would amount to roughly $222 million, based on the company’s last attestation report, which provides a breakdown of the assets that make up its USDT reserves as well as excess reserves and profits.
The company said it would invest 15% of its net profit into bitcoin to “diversify” the reserves that back its USDT token, which aims to stick to a 1-to-1 peg to the U.S. dollar.
That would amount to roughly $222 million, based on the company’s last attestation report, which provides a breakdown of the assets that make up its USDT reserves as well as excess reserves and profits.
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