Can anybody help me debunk the Tether risk?

[hd49728]

I'm strongly reminded of the "real-time" data that FTX published of their "insurance fund":
https://cointelegraph.com/news/ftx-insurance-fund-sam-bankman-fried-fraud-trial-gary-wang-testimony

In the end we'll probably never find out whether Tether is fully covered until after the fact.

There are many powerful entities which can hide the truth and we only know part of the truth or just what those entities want to leak to the public including us. Sometimes they don't intentionally leak information but there are loop holes in their systems which fail to cover their traces. Generally, we never know the whole truth from governments or big companies like Tether.

No one imagined Enron can collapse even with an audits from a big audit company. No one imagined FTX can collapse within a week. There are some people who are very experienced actually smelt about risk from those companies before they collapsed and filed for Chapter 11 bankruptcy. Unfortunately, most of the crowd who invested money to those companies did not know anything about risk.

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[1715471178]

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[rat03gopoh]

Circumstances can change, and even institutions supervised by the government can turn scary. You shouldn't trust that the usd reserves in the safe will stay in place. They can be pulled at any time, while the tokens will still be recorded and function on the network even with no fiat-pegged.
This risk can't be eliminated by default, if someone thinks so then that is what you should accept.

[Apocollapse]

Unsure of holding it because it's likely that they can point out to any address and freeze it as their own desire. I think with this feature, it's also available with other stable coins that we have in the market.

It's not for DAI, because it one of the most popular decentralized stablecoin.

No one imagined Enron can collapse even with an audits from a big audit company. No one imagined FTX can collapse within a week. There are some people who are very experienced actually smelt about risk from those companies before they collapsed and filed for Chapter 11 bankruptcy. Unfortunately, most of the crowd who invested money to those companies did not know anything about risk.

I think it's kind of different discussion, I must say.

Enron is energy company in US and FTX is a centralized exchange, while Tether is a stablecoin. They're work different, both Enron and FTX were legit businesses as they have product to offer, while Tether could be a scam from the first time it was exist, they're strong because the market still trust in Tether.

[zasad@]

Hey guys,

so I know the talks about tether and whether or not they are backed and how is almost as old as Bitcoin itself.
However, this is the only risk that I cannot fully grasp or understand. I see that they minted another billion USDT in the last week.

All the other arguments of anti Bitcoiner (energy, volatility, ...) I can counter.

Is Tether also the thing you are most unsure of?

Would like some input, THANKS

Tether stores its reserves in Treasuries. According to the latest report, this is more than $56 billion. This can be called an informal agreement and most of the money will work for the American economy.
https://tether.to/en/tether-q3-attestation-reveals-highest-percentage-of-cash-and-cash-equivalent-reserves-over-330m-reduction-in-secured-loans-and-maintains-726b-exposure-in-us-t-bills/
I cannot blame the company for this, because these are the rules in the market.
If there are problems with the US economy, then most of the assets will lose value and the USDT will lose its peg to the dollar.