I'm saying its a scam because if they make 1% return off non cash investments, thats 300 000 000 dollarinos a year in pure profit, plus the possibility for loans to a "cousin" or such things to finance a lavish lifestyle. Maybe they buy bitcoin at the tune of 300m a year, maybe not. 2 points - it should be all cash or cash equivalent - it isnt -- and I do have a philosophical exception against stablecoins since I value all shitcoins vs bitcoin, i.e. ethereum is worth 0.067 btc, not some usd number therefore I have no use for any stablecoin.
If some of these kinds of entities are largely shut out of dollar systems then they better fucking be making some money on whatever they are trying to hold.. in other words, some assets go up and some go down, and hopefully they are at least holding the equivalent value of the dollar and perhaps even having some cushion profit in there.. because volatility can be a bitch if there is not some attempts at managing that they do not lose money when they are presumptively trying to stay safe along the way and able to cover any withdrawals that might happen in the process of keeping tether or dollars available for those who may want to convert to dollars rather than tether.
Ok another point, 3 -- if they get say 10-20% of all Commercial Paper outstanding in the USA, and there is a crash, shouldnt USDT outstanding values go down as people sell and withdraw? Then they may be forced to liquidate all of that at once before they come due, crashing the price and making companies unable to issue new commercial paper, killing liquidity and causing a serious financial stress which the central bank will have to step in. Even maybe taking a loss on that. IF they do take a loss, then how do they pay back the USDT ? I wouldnt have any sympathy for people on the hook though.
We all have our opinions, but insinuating I am a no-coiner because I am talking shit about an altcoin
When central bank stablecoin, thus killing usdc, usdt ? I'll stick to bitcoin thanks
Of course, markets are dynamic, and people use the various stable coins to get in and out of bitcoin, and surely tether has been amongst the leaders (at least one of the first to take up the mantel) and the least regulated and the most attacked.. but surely does not even mean that their situation has been static or is going to carry out the same into the future, either..
In the end, you are the one spreading a kind of exaggerated speculative nonsense to make it sound as if you are raising some kinds of novel points regarding how bad of a weakness (or attack vector, or scam) or whatever you are vaguely claiming regarding it's supposed lack of solvency (emphasis on "supposed"), so you likely deserve at least as much blow back that you are getting, and likely more than what you have gotten, so far.. especially seeming to largely be raising old already rebutted tether-FUD talking-points.. to rival up those already inclined towards bitcoin naysaying and other easy distractions away from the actual and real power of our king savior, aka daddy badger.