Tether has, unless they have the most incompetent representatives in the financial industry, just confirmed that they do not have USD backing all outstanding tokens.
(This has long been suspected to be true at least some of time; @Bitfinexed was on the case about a year ago.)
(This has long been suspected to be true at least some of time; @Bitfinexed was on the case about a year ago.)
“Wait isn’t that literally the opposite of what they said?”
No; read it carefully. It makes a distinction between having full USD reserves and says they have “sufficient” reserves (implying: relative to our liquidity needs) and has full assets, but the delta is crypto.
No; read it carefully. It makes a distinction between having full USD reserves and says they have “sufficient” reserves (implying: relative to our liquidity needs) and has full assets, but the delta is crypto.
“What does that mean?”
It means that Bitcoin is in the middle of a stupidly large credit bubble and the biggest supplier of credit, which also happens to be a major exchange, counterparty, and settlement layer, is insolvent and facing a run on the bank.
It means that Bitcoin is in the middle of a stupidly large credit bubble and the biggest supplier of credit, which also happens to be a major exchange, counterparty, and settlement layer, is insolvent and facing a run on the bank.
