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Comment by shawabawa3 | Hacker News Reader

> trillions of dollars that tether has minted

Tether has "only" minted $78 billion, not trillions

Sorry, tens of billions of dollars, not trillions, my mistake. They are currently adding 1 billion a day at times, where does that money come from?

Does anyone really believe 78,423,306,967 USD are currently invested in Tether?

I don't know anything about anything, but I see Wikipedia says Tether is 65% "backed by commercial paper". Which as far as I can tell basically means IOUs, but IOUs that are considered somewhat legit. It definitely seems questionable, but I'm not really sure how to assess how bad it is or isn't.

1) https://en.wikipedia.org/wiki/Tether_(cryptocurrency)

Edit: I see elsewhere somebody saying "nobody in the commercial paper markets have heard of them"

Their commercial paper would make them one of the largest players in the global market if their numbers were true, but nobody knows what they have invested in, they say it is in crypto as well (eek!), they've been found guilty of fraud multiple times, including faking assets by using temporary bank transfers, and the amounts we're talking about make it very hard to believe they could function at that scale without making lots of noise in the global commercial paper market.

So basically, like most other things they say, it's simply not credible.

https://www.ft.com/content/342966af-98dc-4b48-b997-38c008042...

USDC? and BUSD have been growing faster and are US regulated.

With Tether - it's best to follow "fraud until proven otherwise" principle

That "commercial paper" could very well be IOUs from themselves to themselves

Banks don't have to back the dollar by anything anymore.

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