You are viewing a single comment's thread from:
RE: Tether: An accountant's view
Market Cap and actual hard currency are two different things. EOS raised $4bn from their year long ICO, Tether managed to "raise" $2.5bn with no real product.
I think a lot of people use USDT without ever thinking. If you're on a crypto only exchange and want to have some "cash", you hold it in USDT.
i get the difference between market cap and hard currency, but if want to cash out all 2.5 bn worth of tether to usd/gbp or any other fiat, i will still have to sell 2.5 billion worth of some crypto, lets say bitcoin, higher market cap means less coins. A higher market cap can absorb 2.5 bn worth of tether failure was my point, of which some is genuine, let's say half. Yeah, if news comes out that is tether is printing air backed tokens, then the market will sell off badly.
tether is a deposit receipt. its almost like a bank LC. "give this guy a bitcoin for tether, he has got cash, i can confirm it." I don't see any "stable" coin as a useful product.