It’s been confirmed repeatedly that Tethers circulated without any real money behind them at all.
8h ago
The Paxos/PYUSD fat fingered mint of $300T underscored the risk of minting a stablecoin in the absence of the fiat.
That’s how Tether operates. I don’t mean the debate around their reserves, rather than Tether mints USDT to have a ready supply and call it “authorized but not issued”
There’s over $4.8B of this “unbacked Tether” disclosed on their transparency page.
Doing this suggests a not very efficient or safe infrastructure that relies on human involvement and on “Scout’s honor” that they only send that USDT into the market when they have the fiat (which nobody can confirm)
It’s certainly not infrastructure that would pass a serious regulatory audit.
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