USDT Got Transparent... Finally
Almost $2 billion is the total market cap for Tether(USDT) and the same sum should be somewhere in a bank, or more, to back the so called stable coin. Throughout time though different news outlets have accused Tether of actually not holding the amount of USD for their printed USDT and every time the sibling of the crypto exchange, Bitfinex, got away with it.
On December 18th a report from coindesk came out with the statement that Tether in fact holds US$1,831,322,828 in Deltec Bank, a Bahamas based bank just to close mouths. Nobody really knows though if they actually have that money to back their USDTs and nobody knows either if Tether and Bitfinex really manipulated the price of Bitcoin.
What we know for sure is that recently Tether came with a "transparency update" on their official website regarding their funds to back the USDT and it looks like we're not talking only about US dollars. Looks like their reserve "from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”)".
Smart move one would say, like for example Sunny Decree( a Swiss crypto youtuber) on his video on the topic. According to him Tether might have opted to not simply "hold $2 billion" in USD due to inflation that would actually lead to loosing money thus investing some of that fiat might make sense. What do you think about Tether "becoming transparent" and revealing that USDT is not backed by just fiat?
Thanks for attention and have a great day!
Adrian