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Patrick McKenzie
@patio11
, 3 tweets, 1 min read Read on Twitter
Tether has an update, filed under Who Could Possibly Have Seen This Coming.
"What's that mean?"

Previously, they pretended that every USD-denominated tether was 1:1 backed by a deposit in a bank account in USD. At some point they abandoned that model and began backing tethers with cryptocurrencies. Being leveraged in a downmarket has the usual effects.
Now Tether claims to be solvent, if you allow them to pick the marks for receivables from related entities.

Which: yeah, that is not how this works.
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Patrick McKenzie
@patio11
Overheard at airport, at an overbooked flight.

Man #1: “I’d give up a seat for $500.”
#2: “$500?!? I’d do it for le...”
#1: “Bro do you see anyone else up here. They need two seats. (To agent) He will do it for $500.”

I like this guy.
I would have liked him even more if he had Googled the maximum amount the gate agent can authorize without needing to call a supervisor, but at least he anchored relatively high.
Oh there might be folks who don’t know what is happening here.

Airlines typically overbook flights, selling more seats than physically exist such that the flight flies full even when some folks miss it. Sometimes more people show up than can physically board.

Then this happens:
Read 7 tweets
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Patrick McKenzie
@patio11
For folks in Tokyo who are running your own businesses or thinking about it, we’re hosting an IndieHackers meetup: ihtokyo.doorkeeper.jp/events/88762

東京で起業されている方、もしくは検討している方: IndieHackers共同体のmeetup開催しますので、是非ご参加ください。
SaaSも青色申告も違和感はあったがとりあえずやってみた、という方いらっしゃるなら、同じ一族に会えるチャンスです。その他問わず。
(If you can’t read 青色申告 then starting a company in Japan is rough but if you’re confused by it or wonder why it isn’t even actually blue then please come out because we should be friends.)
Read 3 tweets
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Patrick McKenzie
@patio11
. @matt_levine , on banks' purported enthusiasm for blockchain:

bloomberg.com/opinion/articl…

(I think this is probably extremely exaggerated purported enthusiasm. Of course IBM's vice president of blockchain says that buyers should want to buy blockchain.)
@matt_levine Ah Bitcoin, what have ye wrought, that IBM is trying to sell JPMorgan on permissioned USD-backed stablecoins.
@matt_levine The bull case for blockchain:

Slow databases are worse than fast databases, inarguably. But if this particular slow database sets fire in the hearts of non-technical decisionmakers, it might cause the non-technical collaboration to e.g. drive down money transfer flight times.
Read 4 tweets

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Robert-Jan den Haan
@erjeetjeh
THREAD: Some takeaways from the article published today by @FTM_nl on #Tether / #Bitfinex (article is in Dutch). I worked with @thomasbollen on the research behind the article and the leads that provided were followed up by Thomas. Hope you’ll read & share ftm.nl/artikelen/ing-…
1/ The article first discusses many, often separately reported, facts about Tether and Bitfinex, i.e. Paradise papers, loss of banking, break with audit company, +800m tethers in Jan, tetherreport.com, and adds all sorts of details to provide an in-depth longread.
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Matt Odell
@matt_odell
#Tether is/was:
- created to bypass KYC/AML laws & the banking blockade on exchanges that don't comply.
- a centralized stop-gap solution until connections to fiat are unneccesary.
- most likely holding reserves in an offshore bank account.

#bitcoin $btc
2/ @Tether_to cannot defend themselves b/c they risk gov't intervention. Making their bank account(s) public puts them at greater risk of being shut down & assets seized. They also can't acknowledge back room deals between the exchanges & them, that puts the exchanges at risk.
3/ The similarity between Tether & the online sportsbooks/casinos that have had to route around banking blockades for years is obvious. Both need to use sketchy banking practices to maintain their businesses or face government intervention.
Read 6 tweets

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