Hacker News new | ask | show | jobs
by EVa5I7bHFq9mnYK 1198 days ago
Haha, after a decade of FUD, turns out USDT were more cautious and diligent with their funds, than the "regulated and transparent" USDC. Still risky, of course. No substitute to holding proper BTC.
4 comments

> turns out USDT were more cautious and diligent with their funds

This refers to facts not in evidence.

The potential collapse of USDC is not a reflection on the Tether fraud in any way. Outcomes in one are not evidence for or against anything in the other and it is a mistake to conflate them.

Note that this is not because of mismanagement at Circle. This is because these banks bought 10yr bonds and MBSes and now that there is a bank run they have to take huge losses if they have to liquidate. Circle in fact managed this really well IMHO with 75% backing in 36 day t-bills that can be liquidated fast.
Circle/USDC apparently was the one that told SEC to go after Paxos/BUSD. USDC depegs and then Coinbase halts USDC/USD trapping people to either sell for a loss or wait for a miracle everything works out. The irony of it all.
What funds? There's no way to know what funds USDT is backed with.