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0 pointsmumbisChungo3y ago0 comments

No, USDT and USDC are both backed on a 1:1 basis by banking custodians which are regularly audited.

0 comments

USDT is backed by over $8billion in commercial paper, a lot of which seems to be in Chinese real estate companies that are very unlikely to be worth their claimed value.

And note that this was true in May - global markets are WAY down since then.

Moreover, it was only a spot verification - they could have moved money into treasuries for a day and then moved it back again. The auditors explicitly avoided commenting on this.

mumbisChungoOP3y ago

Yes, it looks like 12% of their assets are in commercial paper.

I'm not claiming to be an omniscient source of truth, but USDT is supposed to be backed 1:1, is audited regularly, and has survived extreme volatility events and bank runs for the better part of a decade.

Maybe it will collapse some day. I personally have more trust in USDC and Circle, so I use that if I need a stablecoin.

belltaco3y ago

USDT wasn't even audited once, forget about regularly.

https://blockworks.co/tether-pushes-back-timeline-on-audit-r...

mumbisChungoOP3y ago

Maybe I'm misunderstanding what this document is

https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9b...

1 more reply

Elinvynia3y ago

Could you point me to an USDT audit? Thanks!

ulrashida3y ago

Roughly 20% of Tether's "cash equivalent" investments are with grade A-1 and A-2 parties. It's effectively stable, until it's not. We'll see it in our lifetimes.

mumbisChungoOP3y ago

https://tether.to/en/transparency/#reports

cycrutchfield3y ago

Not an audit

mumbisChungoOP3y ago

One of the first links on that page is a document titled "INDEPENDENT AUDITORS' REPORT ON THE CONSOLIDATED RESERVES REPORT"

https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9b...

2 more replies

Lionga3y ago

The whole audit is nicely cover in a single "Trust me bro"

mumbisChungoOP3y ago

you can read the texts of them yourself and make up your own mind

DYOR or "don't trust, verify" are common mantras in the industry for a reason, and similarly are the reason that I hold custody of my own assets rather than relying on centralized entities like FTX.

j / k navigate · click thread line to collapse

0 comments

alasdair_3y ago

USDT is backed by over $8billion in commercial paper, a lot of which seems to be in Chinese real estate companies that are very unlikely to be worth their claimed value.

And note that this was true in May - global markets are WAY down since then.

Moreover, it was only a spot verification - they could have moved money into treasuries for a day and then moved it back again. The auditors explicitly avoided commenting on this.

mumbisChungoOP3y ago

Yes, it looks like 12% of their assets are in commercial paper.

Maybe it will collapse some day. I personally have more trust in USDC and Circle, so I use that if I need a stablecoin.

belltaco3y ago

USDT wasn't even audited once, forget about regularly.

https://blockworks.co/tether-pushes-back-timeline-on-audit-r...

mumbisChungoOP3y ago

Maybe I'm misunderstanding what this document is

https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9b...

1 more reply

Elinvynia3y ago

Could you point me to an USDT audit? Thanks!

ulrashida3y ago

Roughly 20% of Tether's "cash equivalent" investments are with grade A-1 and A-2 parties. It's effectively stable, until it's not. We'll see it in our lifetimes.

mumbisChungoOP3y ago

https://tether.to/en/transparency/#reports

cycrutchfield3y ago

Not an audit

mumbisChungoOP3y ago

One of the first links on that page is a document titled "INDEPENDENT AUDITORS' REPORT ON THE CONSOLIDATED RESERVES REPORT"

https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9b...

2 more replies

Lionga3y ago

The whole audit is nicely cover in a single "Trust me bro"

mumbisChungoOP3y ago

you can read the texts of them yourself and make up your own mind

DYOR or "don't trust, verify" are common mantras in the industry for a reason, and similarly are the reason that I hold custody of my own assets rather than relying on centralized entities like FTX.

j / k navigate · click thread line to collapse