/biz/ - Business & Finance

[Anonymous No.58323240]

How was Tether's former stated business of backing tether 1 to 1 with traditional currency reserves supposed to have been profitable?
Did/Do they charge people some small amount on every tether minted, I know they charge the greater of $1000 or 0.1% per redemption (minimum 100k usd), but that doesn't seem all that profitable.

[Anonymous No.58323332]

last quarter they spent 15% of their profit to buy 8,889 bitcoin. seems pretty profitable to me

[Anonymous No.58323373]

>>58323240
they can keep the reserves in tbills and still make an absolute fuck ton of money on interest

[Anonymous No.58323400]

>>58323240
They are backed and they earn 5% apy from bonds. Tether schizos proven wrong again

[Anonymous No.58323407]

>>58323373
>>58323400
I'm talking about when they claimed they were backed by traditional currencies.
Neither t-bills nor bonds are traditional currencies.

[Anonymous No.58323826]

>>58323407
I mean if you think they just had cash sitting in a vault doing nothing then obviously no they never did that
if they werent completely lying then it was probably in some interest bearing account, who knows, who cares

[Anonymous No.58324871]

>>58323240
>profitable business
>2015+
its not, its a money laundering scheme like most businesses

[Anonymous No.58324945]

>>58323407
assumably the tether gets loaned to an exchange and the exchange pays interest on that loan

[Anonymous No.58326163]

>>58323826
>I mean if you think they just had cash sitting in a vault doing nothing then obviously no they never did that
That's what they claimed for years. I'm just trying to figure out how they supposedly worked and why people trusted them enough to buy tether.
>>58324945
>assumably the tether gets loaned to an exchange and the exchange pays interest on that loan
Then the tether would be backed by the exchange loan, not a currency.

[Anonymous No.58326187]

>>58323240
if you hold USD in a bank account you get paid interest on it. Tether doesnt pay interest to USDT holders.

Tether currently has over a $100 billion market cap. At 5% interest thats over $5 billion per year in revenue. How is this so hard for normies to understand?

[Anonymous No.58326356]

>>58323240
tether most likely started out as a money printer to pump the prices and support exchange liquidity without 1-to-1 backing but if they haven't made enough profits to back all their usdt issuance by now they deserve to get exposed.
if you look into the history of tether and EOS theres a guy named br0 ck p 1erce who is said to have founded both cryptos, hes heavy into hollywood type shit with kids

[Anonymous No.58326454]

>>58326163
it will be cash equivalents because having those equivalents will earn you more than holding simple cash, so because they are theoretically quickly exchangeable to dollars they would subtly refer it to as dollar backing

[Anonymous No.58326455]

>>58323240
The willful gullibility of the crypto ecosystem around anything to do with Tether is mind boggling.
They've been caught lying over and over, their stated business model made zero sense for years, and everybody thinks this is completely fine, because, and I quote, they haven't rugged yet.
High standards.

[Anonymous No.58326463]

>>58323240
>How was Tether's former stated business of backing tether 1 to 1 with traditional currency reserves supposed to have been profitable?
their balance sheet is composed of short term treasury bonds that yield ~5%
go do the math on what 5% of $90 billion is

[Anonymous No.58326469]

>>58323407
>Neither t-bills nor bonds are traditional currencies
t-bills are bonds you fucking illiterate retard
they're also CASH EQUIVALENT, meaning they sell for about the same value you bought them for

[Anonymous No.58326472]

>>58326455
the sheer irony of this post is unreal
you don't know anything about banking
absolutely nada

[Anonymous No.58327762]

>>58323407
They also charge fees to convert otc between the banking system and crypto.

i think the entry level of a tx was a minimum of 100k wire so it's for the big players to get into crypto and out.

When you see the 1b tether has been minted shit it is most likely a big capital injection, tether gets a fee on that fiat when they mint those and the opposite way.

[Anonymous No.58327780]

>>58323407
>Neither t-bills nor bonds are traditional currencies.
they pretty much are

[Anonymous No.58327782]

>>58326455
Tether = Currency board with fees for entry and leaving through it, plus they gain wealth from treasuries interest.

USDC = Digital USD aka collateralized bank dollars hence why usd depegged during the banking crisis despite being shilled as the "regulate and safe stablecoin", they are subjected indirectly to bank regulations unlike tether because after all you are buying collateralized bank usd

DAI = Tokenized overcollateralized stablecoin backed in part usdc part ethereum part btc part shaddy funds

3 types of stablecoins basically.

[Anonymous No.58329355]

>>58326469
T-bills can sometimes refer to money market securities broadly in financial literature, which would be any treasury with a maturity <12mo remaining. Bonds are therefore any treasury with >12mo remaining. Go read more before nitpicking

[Anonymous No.58329368]

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