Altcoins News
By Steven Anderson
1 / 15
Tether isn't a very complicated concept. I find it odd how people seem to struggle with it. Sometimes very intelligent people.
2 / 15
Someone said: Q: What’s backing your cash in banks? A: NOTHING.
3 / 15
Tether reserves breakdown: + 76.0% in cash & cash equivalents + 12.5% in secured loans + 10.0% in precious metals + 1.
4 / 15
In response to the cash reserves breakdown there were several anti-tether opinions: The cash equivalents contain a lot of undisclosed commercial papers.
5 / 15
Someone replied: There already was a bear cycle. Tether was just fine.
6 / 15
A prompt response was, the size of the sector way back then was much smaller and there was no DeFi lending/leverage. These are new risks.
7 / 15
Some were left confused asking: I don’t understand. Tether is not a bank but a cryptocurrency, can’t be backed by whatever they want?
8 / 15
If I start spending counterfeit USD, do we just say it’s a free for all and leave it all on the recipient? I suppose we can try that experiment.
9 / 15
Many felt they were low on Bitcoin allocation!
10 / 15
Someone who was furious expressed, “So Tether idiots have gone from it’s not backed by anything' to 'I don't like the composition of its backing' and people are still listening…
11 / 15
Someone who tried to nitpick stated, as far as I understood the "cash equivalent" category, what Tether is using is not cash equivalent as understood by the general accounting…
12 / 15
More specifically, unsecured commercial papers are not cash equivalent: In the absence of other information I would assume the CP is unsecured.
13 / 15
It doesn't matter what you lower the reserve ratio to. Banks won't lend anyways. There's a lack of good collateral in the system to back new loans.
14 / 15
There are only 4% of pure cash, others are fake scammy bubble equivalents.
15 / 15
However, there are Tether Advocates who justify the backing.
The Currency Analytics
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