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Attachments: Is Tether fully backed? What would failure mean for exchanges
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Is Tether fully backed? What would failure mean for exchanges

  • Opened Oct 5, 2021 | Never Closes | 9 Votes
  • Poll Results
Is Tether fully backed?  
Yes
0 Votes
0%
No
8 Votes
89%
Doesn't matter
1 Vote
11%
  • Post #1
  • Quote
  • First Post: Oct 5, 2021 3:30pm Oct 5, 2021 3:30pm
I'd like to know what the community thinks of Tether. Do you think it's fully backed? I'd hate to see a major failure in the crypto space, but if regulatory headwinds or some systematic failure affected Tether, how bad could things get for crypto exchanges and major coins? The outstanding USDT supply is turned over at least once a day in volume.

Tether operates a fee structure which with enough daily volume seems reasonable to generate cash to provide the backing, but the undisclosed time-lag between "issuing" USDT and purchasing the backing seems like it leaves enough room for market manipulation via intraday crypto positions funded by USDT.

The only financial statements that I can find is their daily transparency page which is clearly unaudited. According to their FAQ, USDT cannot be redeemed for USD. The rest of their FAQ seems shallow and like it solely exists to convince you that they are fully backed. Here's their third party attestation (not a full audit) from February.
Are you kidding????



Everyone who even starts to think Tether trash is fully backed....



Should enter some mental institution for examination




It speaks volume when their own auditor (super highly paid) kicks away the Tether bribes and says "Fock it I'm not touching this scam".




PAX, TUSD for example is OK.
Beware of robber banks (RB), bad advisors.
Der Trader All Time Pips: 52,970
Quoting Not-KPMG
Are you kidding???? Everyone who even starts to think Tether trash is fully backed.... Should enter some mental institution for examination It speaks volume when their own auditor (super highly paid) kicks away the Tether bribes and says "Fock it I'm not touching this scam". ...
All this talk... but no vote

So you think Tether is a scam - if the scam unravels, what do you think the implications are for the rest of the crypto space?
Fully backed?
Attached Image
It's only a matter of time before this house of cards comes down.

Tether isn't going to be able to prove its backed. They've gotten some shady offshore transfers and still were only able to get it up to around 74% backed. But even then, that was a report published by Tether, not a legit outside auditor.
Quote
Much remains murky, however, in part because the pie charts provided by Tether on Thursday make no mention of any independent review by an accounting firm. Moore Cayman, an audit firm in the Caribbean with five employees, has published two reports this year attesting that USDT is fully backed. But the auditor (part of the Moore Global confederation of accounting and consulting firms) did not detail what exactly is backing the token.

source: https://www.coindesk.com/markets/202...mercial-paper/
Here we go! CFTC fines Tether and Bitfinex $42.5 million over USDT backing

Quote
The CFTC's announcement said Tether made "untrue or misleading statements and omission of material fact" related to its stablecoin, USDT. Tether falsely claimed that USDT was fully backed by U.S. dollars, according to the CFTC. The order requires the firm to pay a penalty of $41 million.
Good call.

My vote was cast after the correct answer was revealed, but I'm sure I'd have gotten it right at any time.
  • Post #8
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  • Last Post: Oct 15, 2021 2:36pm Oct 15, 2021 2:36pm
Could Tether be the October buyer?
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