tether whitepaper: Each tether unit issued into circulation is backed

[blandana]

It says it in the white paper.  Did they get a new bank and suddenly get 3 billion extra dollars in 3 months?  Very exciting if so but if they can't account for it it's pretty easy to make a case against them.  I'm fairly certain there has to be an SEC in China or whatever country it's really in that can make a case against them if they don't actually have this money.

Has anyone heard about a new bank or funding?  That's a lot of extra money and if it says in the white-paper they're supposed to be backed 1:1, isn't it misleading investors and/or breaking the law if they are not backed?  It's sort of a legal agreement isn't it, what's in the whitepaper.  Not too certain but it seems really easy to make that case right now.  It's seems rediculous if they're in court right now that they would allow their company to print 2-3 billion extra coins if they can hardly pay back the 980 million dollar loan that went "missing."
here's the link to the tether whitepaper supposedly, it's clearly stated on the fourth page.  
https://tether.to/wp-content/uploads/2016/06/TetherWhitePaper.pdf
The white-paper also mentions the backing is in "fiat" (meaning: government issued) not bitcoin.  

sorry also I'm not a "newbie" really.  I've had this account since 2013 it even says in my info, sorry if that misleads anyone to make some weird assumptions.

[NeuroticFish]

The first thing to know is that they've never allowed a proper independent audit. So nobody knows how well is Tether backed by fiat, some say "at most 74%".
Since you are not really newbie, you know that people can write a lot of silly stuff into whitepaper; they have to prove that with facts, which Tether/Bitfinex didn't do.

[blandana]

right on.  I figure the first step is to find out how legally binding the whitepaper is.  I figure its most likely partially binding since you sort of have to apply with your local financial regulator or something.  It really defeats the purpose of tether if more is getting printed and no one can prove it's backed anywhere by anything fiat.

[avikz]

I want OP to read this below article,

https://www.forbes.com/sites/francescoppola/2019/03/14/tethers-u-s-dollar-peg-is-no-longer-credible/

Now, if you visit Tether's website, it says,

Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”)

So it's not necessarily backed by USD only even if the value is pegged to 1 USD for each tether! Unless and until they go through a proper audit, there's no way to know the truth!

[hugeblack]

Who is the stupid who still thinks that each currency is backed by $ 1? the same thing was with the dollar when it was tied to gold and then became promises.
Currently, this currency is linked to the value of 1 dollar and is not backed by the dollar, meaning that it is an account equal to $ 1 and this is the archive for their page.

Every tether is always backed 1-to-1, by traditional currency held in our reserves. So 1 USD₮ is always equivalent to 1 USD.

Is this legal? If the value is not worth $ 1 I expect that you can sue but you can do it now.
The real value of these currencies to stabilize gains and have no real use.

[blandana]

I want OP to read this below article,

https://www.forbes.com/sites/francescoppola/2019/03/14/tethers-u-s-dollar-peg-is-no-longer-credible/

Now, if you visit Tether's website, it says,

Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”)

So it's not necessarily backed by USD only even if the value is pegged to 1 USD for each tether! Unless and until they go through a proper audit, there's no way to know the truth!

that's besides the point.  this is about the whitepaper.  they can say whatever they want on their website.

Is this legal? If the value is not worth $ 1 I expect that you can sue but you can do it now.
The real value of these currencies to stabilize gains and have no real use.

yeah that's what i don't understand. 

[Theb]

right on.  I figure the first step is to find out how legally binding the whitepaper is.  I figure its most likely partially binding since you sort of have to apply with your local financial regulator or something.  It really defeats the purpose of tether if more is getting printed and no one can prove it's backed anywhere by anything fiat.

They can say anything they want on a fine print and its totally not binding, that's how marketing works as there is no contracts or agreements involve with both of the parties. We are only talking about a whitepaper here and not a contract intended to be signed by a buyer, and definitely the ones buying USDT in an exchange. Just think of it this way a whitepaper is like a flyer to advertise people and never a contract. They'll just make a perfect excuse that they may have translated the words wrong or the word "asset-backed cryptocurrency" serves a different meaning.

[blandana]

right on.  I figure the first step is to find out how legally binding the whitepaper is.  I figure its most likely partially binding since you sort of have to apply with your local financial regulator or something.  It really defeats the purpose of tether if more is getting printed and no one can prove it's backed anywhere by anything fiat.

They can say anything they want on a fine print and its totally not binding, that's how marketing works as there is no contracts or agreements involve with both of the parties. We are only talking about a whitepaper here and not a contract intended to be signed by a buyer, and definitely the ones buying USDT in an exchange. Just think of it this way a whitepaper is like a flyer to advertise people and never a contract. They'll just make a perfect excuse that they may have translated the words wrong or the word "asset-backed cryptocurrency" serves a different meaning.

you sound sure of yourself.  I need a way to prove what you claim in writing legally.  Im assuming the whitepaper's core function is not to be tampered with.  You can't turn decentraland into litecoin, delete all the land, and then expect not to get sued.  Tether changed their whitepaper if there is not 1:1 backing anymore and should be deleted, paid back, or replaced if that is not possible.  I don't think it's fair for the market to undergo such shady rewording over time which facilitates counterfeiting and crime.

for example, if I were to register a new "coin" today I'm under the impression i would need to submit a whitepaper to a legal firm to remain compliant and follow the strict guidelines set within it and make announcements if there was a drastic change such as oh...i dont know.... a missing 30% backing (or worse) of my coin if it's supposed to be 100% backed?  it's probably not legal especially if you havent informed investors in over a year and its obvious theres a problem or has been a drastic change.