[gwicks56]

Tether should be making money though right? You give Tether $1b USD, they issue some tethers you can redeem later, and in the meantime, they invest those tethers, in say treasuries, and earn 4% or something? You earn no return, so don't they basically have an interest free loan of 60B or whatever? So unless they are incredibly greedy, they can just sit around making bank, without actually having any good reason to take on too much risk?

[ajhurliman]

That's the idea. It's not unreasonable that such an organization that simply takes deposits and provides some service _could_ exist without losing money (after all, that's the fundamental premise of banks), it's whether they followed through on their promise or managed it poorly and no longer have 100% backing.

[grogers]

> unless they are incredibly greedy

That's the crux of it, isn't it? A lot of people think that they are greedy. Also, most tethers were created in 2020, when short term treasuries we're yielding nothing. Which made the incentive to "cheat" much higher than with the present rates.

[wmf]

Tether is run by incompetent people so I wouldn't be surprised if they have lost money on their investments. At least they're not gamblers like Mashinsky.