[jqpabc123]

Is Tether not being backed by real $ not actually as big a deal?

It's no big deal --- as long as enough people accept the fact that they can't actually redeem their Tethers for real USD.

As long as everyone is invested in playing the game, the illusion proceeds unimpeded. But eventually, reality will slowly start to intrude on the fantasy. People will be faced with the fact that the USD they fed into the fantasy ain't coming back out.

When this happens, the exchanges will just vanish into the internet ether from which they sprang and the people who ran them will be a few trillion richer --- in USD, not USDT.

[sneak]

> as long as enough people accept the fact that they can't actually redeem their Tethers for real USD.

Just like a fractional reserve bank, everyone can indeed redeem them. Just not everyone at once. Many people can and do redeem USDT.

FWIW, I think Tether is now backed >80-90%. I don't think they was always the case, but I think it is now. I personally won't touch USDT ever, but I don't think it's today the huge outright scam it has appeared to be at times.

[domano]

Why do you think it is backed now? If i look at the amount of freshly minted coins since the investigation could not be halted i very much think that the rate may have even got worse.

Genuinely interested

[sneak]

I theorize based on the previously published documents that they made up the previous shortfall in gains in holdings of other cryptocurrencies, via Bitfinex.

I would imagine that much of the recent issuance is legitimate. I, of course, have no way of knowing as they have never once been subjected to an audit. As I mentioned, I never touch USDT for any reason.

[jqpabc123]

I never touch USDT for any reason.

If you trade cryptocurrency, USDT is touching you.

From what I have read, as much as 60 percent of all crypto trades involve USDT. Any stability (such as it is) in the crypto marketplace largely rests on the fantasy that USDT is backed by USD.

[user-the-name]

Tether themselves just declared that they have less than 3% in actual cash, and that the vast majority is covered by unspecified, highly suspect loans.