'Whereas UST was a decentralized Ponzi scheme in that it...used fake money to print representations of real money, Tether is only a decentralized Ponzi-like scheme in that it operates a bit like a bank,' danielgkuhn writes for The Node newsletter Opinion
completed by top five accounting firm BDO Italia, which is not the same as an audit) showing Tether netted $1.48 billion in profit in the first quarter of the year. The firm’s “excess of reserves” has about doubled to $2.4 billion, which I think would be included in its $81.8 billion in “consolidated total assets” .
Although Tether didn’t state as much, its bitcoin-buying plan could also be seen as an attempt to de-risk its exposure to the U.S. dollar. It’s en vogue nowadays to talk aboutor the process by which countries reduce their reliance on the greenback, seeing as trust is dwindling in the fiscal and monetary policies of the U.S. More specifically, the Federal Reserve is caught between quelling inflation and starting a recession while the U.S. Congress is locked into athat genuinely risks the U.S.
There’s really no amount of bitcoin that would save the firm if the buck breaks. But until that happens, Tether just has to take in funds and pay out withdrawals – and it can invest the spread wherever it wants So long as the company is not swapping out bitcoin for its cash or cash-like reserve assets, like U.S. Treasury’s, meant to ensure USDT is always redeemable 1:1 for the U.S. dollar, then it’s fine. And Tether did say it's only using profits.
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