Altcoins News
By James Thorp
1 / 15
Tether reserves breakdown: + 76.0% in cash & cash equivalents + 12.5% in secured loans + 10.0% in precious metals + 1.
2 / 15
Prompt: “Now ask this question: What’s backing your cash in banks? Turns out it’s hard to answer.”
3 / 15
This led to a flow of confusions. “If…Then….Else queries…”
4 / 15
The 65% of that 76% is commercial paper, which even on Tether's chart is not a cash equivalent. It's perfectly possible to discover what is "backing" your cash in banks.
5 / 15
Commercial paper is a not a bond. it’s a money market instrument.
6 / 15
As a general rule, I am skeptical of anyone who ignores the obvious problem with Tether printing money that doesn't exist, and instead tries to turn the conversation to…
7 / 15
And these are just sample responses. Dan Held, the Bitcoin Advocate came up with his explanation to the rescue of Tether.
8 / 15
He has published a detailed support which is titled “Don’t Fear Tether” This was published somewhere around January 2021.
9 / 15
Held published that he is not going to publish a 40 page report in this regard as none of the users would be convinced.
10 / 15
However he quoted: "The amount of energy needed to refute bullshit is an order of magnitude larger than to produce it. - Brandolini's law.”
11 / 15
He has covered the purpose of Tether, the basics of how the crypto markets work, the claims, tether is a fractional reserve/not audited, Tether is used to pump Bitcoin, what…
12 / 15
So, those who would like to have an exhaustive read should check “The HELD Report”
13 / 15
Regarding Fractional Reserve Dan Held published; “There is some legitimacy to this claim. We do know that Tether was partially backed for a period of time (April 2019) when…
14 / 15
Regarding the audit he has published, “Many rightfully ask that Tether should produce regular audits. However, this is harder than it sounds.
15 / 15
Irrespective of who has to say what, Paolo Ardoino is like: “Indeed "100% backed. Full-Stop!" is epic.”
The Currency Analytics
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