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_gabrielShapir0
@lex_node
This is the main Tether thing that always worried me. That they could just mint USDT for certain customers without a corresponding deposit. This is basically lending USDT on an unsecured basis & could result in market manipulation by the recipients.
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Bennett Tomlin
@BennettTomlin
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We also learned that Tether started using commercial paper and other assets as part of their reserves much earlier than we had previously known. It also revealed that they would give their clients Tethers before they had actually received the wire
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Jesse Powell
@jespow
Did they say the advances were unsecured? Wires can be called back even after they land. Nothing is ever “settled” in fiat banking. I don’t understand the manipulation comment. Anything *could* result in “manipulation” (whatever that means) but how is this setup special?
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Jesse Powell
@jespow
The “price” is the exchange rate of BTC to USDT, not USD. USDT is not pegged to USD, has its own free floating exchange rate, regularly trades at a discount/premium, and already accounts for these dynamics. The mistake people make is thinking it’s USD.
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HugoS
@BitcoinHugo
Doesn’t listing it on kraken give it (perhaps unwarranted) legitimacy to the idea that it is equivalent to usd?
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HugoS
@BitcoinHugo
Not trolling, I get your point… but I think the mistake you are looking to clarify in this tweet is as a direct result of exchange listing it. “ It must be trustworthy, kraken must have done their homework and would’nt list it if not..”
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