Thread by @dkcrypto13

More on #tether. Just listened to the podcast with Paolo and Stuart done by Peter McCormack. I thought it was informative, but there were significant issues. I will first summarize the relevant part of Q&A (and paraphrase), then provide my interpretation.

1/ Are you shareholders in Deltec bank? A: They do not disclose investments.

2/ What is your KYC process? A: Stuart clearly read off a statement prepared by their lawyers.

3/ Why can $USDT be issued on weekends? A: Because they already have the funds but this is when the customers require/want them or receive them.

4/ Is $USDT fully backed? A: Yes, it is always fully backed by assets we hold. This may involve loans or other assets. A while back it was 74% cash plus other assets. It was always fully backed. They do not disclose what it is backed with, but may do so in 2021.

5/ How much is held in $BTC? A: Won’t disclose that but need #bitcoin even for trading fees. $USDT is always pegged to the USD. They always value one USDT as one USD. It defies logic a company that was under the microscope so long could still operate if it were not legit.

6/ What stops you from providing a full audits? A: They tried to get an audit but their business was just too vast and too large and complicated. So instead they provided all kinds of attestations by a different mix of people like lawyers and banks. Could provide more in 2021.

7/ Relevance of court date Jan 15th? A: Time the injunction runs out and it won’t affect #tether business which will go on in the same way after. It could end in NYAG taking action or also saying there are no issues.

8/ Where do all the attacks come from? A: No-coiners with an agenda against #bitcoin. (“We are the victim”)

9/ This is my interpretation on this Q&A on #tether $USDT and #bitcoin. Sorry I had to do it as a picture, but it is too much for a thread.

10/ I want to thank @petermccormack for thw interview. I was pleasantly surprised that he did ask the most important question (why no audit on the past). Would have wanted a bit more pushing on “we were simply too large”, but it was asked. Overall, he asked great questions.

12/ Has it changed my perception on #tether? Somewhat. Think a large share of what they are doing today is legitimate & this strengthened the impression. However, it proves the biggest problem: using custodied assets to invest. That means tether is by definition not a stablecoin

13/ Finally, as always: this is all my opinion. None of this is financial advice AND I could be wrong with what I write here. I do not know more than you, I just make observations based on what I see & hear.

BTW I am not a no-coiner who hates #bitcoin at all. I just hate scams.

@gavinlucas110

14/ Just adding this here as a nice case study regarding #tether sends to binance and $BTC price.

https://twitter.com/dkcrypto13/status/1348757370432794624?s=21