[HN Gopher] Tether (USDT) is launching on Coinbase Pro
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Tether (USDT) is launching on Coinbase Pro
Author : WA9ACE
Score : 8 points
Date : 2021-04-24 17:28 UTC (5 hours ago)
(HTM) web link (blog.coinbase.com)
(TXT) w3m dump (blog.coinbase.com)
| aritmo wrote:
| > For stablecoins like USDT, the company behind the protocol is
| responsible for holding reserves that fully back each token. The
| company behind Tether, Tether Limited, claims to hold reserves
| that fully back each USDT. As of 2021, USDT is the most widely-
| used stablecoin in the world, with a market cap over $30 billion.
| snypher wrote:
| Has Tether ever _proven_ that the coin is backed by $? It 's
| fine to claim that, but I'm pretty convinced the $ doesn't
| exist and would like to see some proof otherwise.
|
| "Indeed, a Tether lawyer said in 2019 each USDT was only about
| 74% backed by fiat equivalents."
|
| What's a fiat equivalent, because it sure doesn't sound like a
| $?
| FDSGSG wrote:
| >What's a fiat equivalent, because it sure doesn't sound like
| a $?
|
| Government bonds
| boublepop wrote:
| Tether themselves issued a shady statement saying something
| like they where backed 70% by dollar holdings, or crypto
| equivalent. Essentially meaning that as long as they don't
| pocket 100% of the money you pay them. And as long as they
| mint twice the amount of tether using one to back the other,
| well they they are technically not lying. But reallity is
| that if enough people tried to withdraw dollars for tether
| the coin would collapse and the masterminds would suddenly
| "die of some obscure disease in India" with all their wealth
| disappearing with them.
| hebetude wrote:
| how old is this quote? It's 50 billion
| https://coinmarketcap.com/currencies/tether/.
|
| It's an incredibly shady coin. No doubt it was a lot of work by
| Coinbase to onboard it.
| spurdoman77 wrote:
| For stablecoins, I think normal people dont think thar much
| about the shadiness but more if it works or not. Tether has
| been keeping their stablecoin stable for 6+ years, for normal
| users it looks good for quite wide variery of uses. Of course
| no one is saving their pension in USDT but there are lots of
| shorter term use cases.
| dragonwriter wrote:
| > For stablecoins like USDT, the company behind the protocol is
| responsible for holding reserves that fully back each token.
|
| I don't think full backing is technically required for a
| stablecoin. OTOH, such a promise, if believed, helps a stablecoin
| stay stable, and having made the promise it becomes the firms
| obligation.
| jl2718 wrote:
| It is now for regulation-compliant stablecoins. Also KYC checks
| and AML blacklisting.
| rahimnathwani wrote:
| Does this mean that Dai (which does relies on market
| mechanisms rather than than reserves) is not compliant with
| regulations, but USDT is? Which regulations?
| jl2718 wrote:
| Yes. https://tlaib.house.gov/sites/tlaib.house.gov/files/ST
| ABLEAc...
|
| I don't know what that means for DAI. An interpretation of
| the law may mean that exchanges would not be able to sell
| it. And the owner would normally be liable for breaking the
| law, which is every MKR holder, so I don't know how they
| plan on doing that.
|
| But honestly, it never works out that way. Laws get passed,
| regulators take out easy targets, and the big guys tie them
| up in court until they get the laws they want.
| celticninja wrote:
| Well it has been called into question since tether began. Not
| helped my them paying an SEC fine recently for not backing it
| fully. It is still questionable if it is fully backed or not,
| with evidence or support not being supplied by the company
| behind it.
| hebetude wrote:
| US government fining alternative currencies!? Of course they
| do any loss by US dollar is a loss for the fed.
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(page generated 2021-04-24 23:02 UTC)