this post was submitted on 26 Oct 2024
15 points (100.0% liked)
cryptocurrency
2662 readers
7 users here now
The largest cryptocurrency community on the Fediverse!
Lemmy community dedicated to cryptocurrency news, technicals, education, memes and so more!
💬 Chat on Community Improvements and Development
Community Knowledge Base:
Be nice, have fun.
Community rules:
- No Spam
- No ads
- No aggressive coin promotion or attacks on others
- No ICOs / IEOs / STOs / token (pre)sales / scam schemes promotion
- No trading/buying crypto discussions
- No promotion of trading groups, courses, signal groups, or other trade groups
- No pumping and shilling
- No casinos, giveaways, faucets, begging
- No price speculation posts
- No trolling
General lemmy.ml instance rules applicable here too.
Ugly brother of this community: bωockchain
For a community devoted to cryptography itself, visit c/cryptography
founded 5 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
From what I ubderstood, it doesnt has to be in cash or it would have been so simple as you said. The money can be in form of bonds, properties, stock shares, ...
same thing for banks, they dont have all customers' money in cash.
that said I agree that people behind tether are shady and lack of serious auditing is very concerning
They're not a bank, though. Banks are regulated in terms of what assets they keep, and where. We only have Tether's word.
https://tether.to/en/transparency/?tab=reports
They claim that 84% of their reserves are held as cash or cash equivalent, with 81% of that in US Treasury notes. Then why do they use some obscure Italian accountant to attest to that? They ought to be able to get a big name firm to attest to having $100 billion in US treasuries.
They also claim to hold 5% of their reserves in Bitcoin, which is 5% too much.