SBF on Twitter: "@nanobythebay @Jason I haven't studied commercial paper in depth but believe the default/loss rates on high rated commercial paper are verrrry low." / Twitter

I have had major concerns about tether $USDT since at least 2017. It has been hard to know what to do in response to this, but suffice to say that it is the biggest systemic risk to every cryptocurrency that exists.

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@jason

@Jason

Jun 14, 2021

Do I have this correct: 1. Tether is a stable coin backed by real dollars 2. Their balance sheet has ~$30b "commercial paper" 3. commercial paper means loans 4. $30b makes them the 7th largest short term debt holder in the world 5. no one on Wall Street knows them? educate me!

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‎This Week in Startups: Tether: Crypto’s Black Swan? Plus Alternative Asset Roundtable featuring...

‎Show This Week in Startups, Ep Tether: Crypto’s Black Swan? Plus Alternative Asset Roundtable featuring the founders of Masterworks, Fundrise & Rally Rd | E1232 - 15 Jun 2021

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Thanks! See more of my thread. What you’re doing is important work. We need tether to die or to be confirmed legit for crypto to actually thrive. I recommend you get

@SBF_Alameda

on the pod since he’s one of tether’s staunchest defenders.

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I haven't studied commercial paper in depth but believe the default/loss rates on high rated commercial paper are verrrry low.

9:14 PM · Jun 16, 2021Twitter Web App

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Side note: When are you going to list Nano so i can finally stop using

@cz_binance

?

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I’m not an expert here at all, just keying in on it based on the rumors (I’ve seen no evidence either way) that $30B in commercial paper would make tether the 7th largest holder globally, but no one dealing with commercial paper institutionally knows who they are.

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@jason

@Jason

Jun 14, 2021

Do I have this correct: 1. Tether is a stable coin backed by real dollars 2. Their balance sheet has ~$30b "commercial paper" 3. commercial paper means loans 4. $30b makes them the 7th largest short term debt holder in the world 5. no one on Wall Street knows them? educate me!

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Shitcoin minimalist (parody)

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Do you, as an important customer and someone that redeems often, have more insights on the counterparties to these commercial papers? (A yes or no would suffice)

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why this tether fud showing up again? They settles with NY prosecutors right? also its trading on coinbase now... so i was finally sleeping well sitting in tether.. especially at this moment tether is my biggest allocation you still have doubts about tether reserves? thanks !

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Played a key role in the financial crisis: law.berkeley.edu/files/bclbe/CP & afaik there’s no evidence to suggest it is high rated

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Hey the link doesn’t work for me

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Default rates are low, but shouldn’t any non-zero default rate be a cause for concern? This isn’t the correct approach to building a systemically sound stable currency alternative. Also, would you want ETFs putting 20-30% of their holdings into non-basket assets?

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