USDT: Schrödinger's Currency

in #cryptocurrency7 years ago

USDT is making for some fascinating drama.

On one hand, USDT should be backed 1:1 with USD, but who's to say what's really in the USDT box.

This was just posted by Bloomberg: U.S. Regulators Subpoena Crypto Exchange Bitfinex, Tether

https://www.bloomberg.com/news/articles/2018-01-30/crypto-exchange-bitfinex-tether-said-to-get-subpoenaed-by-cftc

It really should be something that is monitored by regulators, and the backstory seems somewhat spotty at best. But don't take it from me, read the article.

Considering the possibility that there is not quite the amounts of USD they claim, then a slight discount to $1USD seems to horrifically under estimate the risk.

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We won't really know, until the box is opened.. so we can think of USDT as both alive and dead....

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What do you think happens if it's determined that Tether lacks the sufficient USD reserves?

Going from the article, if they have $443M USD, but are supposed to have $2300M USD, then that implies 19 cents on the dollar. That's just the math...

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