Well, one of the possibilities is that Tether was printed at a higher rate since October 2017 to keep up with the demand for a cash equivalent asset to help the crypto portfolio managers manage risk on their funds and to reduce the overall volatility of their portfolios in order to generate additional alpha. (Modern Portfolio Theory)
A possible reason for Tether not disclosing the USD account(s) with over $2 Billion is that they may be holding the funds in crypto assets in order to generate even more profit, which is kind of risky.
They may also not want to specifically disclose their bank account(s) info as to avoid potential action by regulators as well as cyber criminals.
Just opining on other possibilities of this Tether scenario...
Actually I also do steemit full time for a living. The platform offers better a opportunity than any full time job here in our country (the Philippines) as the average minimum wage here is 318.00 PHP only or slightly more than $6.00 a day, not to mention that it is also hard to find a decent job here (especially when you did not finish college). To us (Filipinos), steemit is more than just a platform, it is indeed a life changer! And so as I received my very first steemit payout, I was very very happy! So I shared the platform to some of my friends and most especially to my family. For now I am leading a small steemit community here in our place (the @steemph.iligan community). Actually it is more than just a community, to us we are more like a family already. I guide them and we support each other to be fruitful here. I would really appreciate your help if you can throw some support to us. Thank you!
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Here in Venezuela, the Steem and other cryptocurrencies are a salience to the crisis. The minimum wage is approximately $ 3 a month, imagine ... And a pound of meat and chicken are $ 4, it is very difficult situation. Many are using this platform as a way to support their family !!!
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what do you eat if you're earning $3 a month?
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Well, you can usually get 3ish pounds of rice for the price of a pound of meat, I would say it's likely rice and beans. But probably not even enough of that to be satisfied :(
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that's intense, what about rent, etc.?
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expenses aren't going to be the same as they are here but regardless, $3 is a cheesburger where I live, so it must not be easy.
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This comment has received an upvote from the @minnow-aid
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wow.. that's so tough at all at the Venezuela.
people must be interested in this amazing platform.
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@hackerzizon what are you talking about?which platform ?earning 1$ in steem it seems hardest thing in the world for me right now .
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@pendrive this platform... steem
T.T yeah i agree i also struggling to get followers and vote hahaha
we are same
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well people you guys need to check this out first.
steemian.com used user's key for autovoting them without permit.
steemian.com issue
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Thanks..👌
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@hackerzizon what are you talking about?which platform ?earning 1$ in steem it seems hardest thing in the world for me right now .
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that's true.. it's a very difficult situation.
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wow, so much love for you all out in venezuala. All I ever hear is mostly north american propaganda of the crisis so its hard to know whats really going on. I have heard about how crypto mining has been helping people get by and Keep up the good work. Followed and stoked to support!
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Thanks very much!!!
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Cheers! Enjoy the 100% Upvote :)
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Thanks Dear @ebargains
your 1 upvote changing my account value..💜
Love You Dear 🌹🌹
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I agree with that nice :)
I just upvote and follow you.
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My upvote to you, bro!
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Thanks..👌
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https://steemit.com/cryptocurrency/@tanvirabedin/dogecoin pls follow and votes me i also follow and votes u....
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you've done the right thing
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https://steemit.com/cryptocurrency/@tanvirabedin/dogecoin pls follow and upvotes me i also follow and upvotes u....
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I think I too will be staying on steemit full time and personally I would like to earn £30 a day on it and that would be perfect for me.
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Indeed. Even if we finish college it's still hard to find a job that's inclined with our course. That's why most of the fresh graduates here in Philippines applies in a BPO company (even me) because the pay/salary is higher compared to the job inclined to our course. Not to mention their are some companies only allow/accept employees who are their relatives or relatives of their workers.
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Muzta shanto. I am Kano but live in Zambales now 6 months a year. Yes life is tough for people in the Philippines for work and money. Keep building here on steemit. I support your efforts 100 percent. I come back there to Manila in a few months then down to my place in Zambales (Subic) area. I hope to maybe meet some other Steemians. I m new here but have lived off and on many years in your beautiful country. Salamat Po for reading my post.
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Keep up the good work! Upvoted. :)
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@ebargains I would make a presumption, that Tether was printed at a higher rate since October 2017 because a lot of exchanges asked for it, and in return gave huge sums of money. So nothing special and problematic about that.
Second thing, banks have an obligation to keep only 10% of funds as reserve, so other 90% can "float" around the world. And this is not a problem, unless all the people will want to cash out at the same time. So same things have to apply to Tether as well, and also – they have more than 10% of $2 billions in bank accounts.
Third thing, @espano don't you think, that Tether have audit problems just because nobody want's to audit them? The process is not super hard, I agree. But you still need a big comoany to do that, and large audit companies do not want to risk their reputation. Because if they do the audit, and put signature, that everything is okay, but eventually turns out to be the opposite – not only Tether will lose trust, but the audit company will lose trus as well and possibly will go out of business. After all, it's $2 billions have to be audited. And that's a lot of money! That's why, nobody want's to work with Tether or have weak ties. All crypto market now is unregulated and there's are a lot of holes and dark corners.
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@karolynaz Your point about audit companies shying away from crypto businesses is very relevant at this point in time. Apparently Grant Thornton, one of the largest auditors in the world, audited Bitconnect before it went up in smoke. Not sure what their report stated though.
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You are Right..👌
I Accept your comment.. 100%
Thanks dear..
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There is no way you can make such a mistake at audit that you will destroy your credibility that much as an audit company. As explained in the above article, auditing cash flows is the simplest thing to do.
My opinion is that if they are rotten let them crumble and call them out. The crypto community needs to self correct. It can do it and that will give it credibility in the mainstream.
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$2 billions. And that's a lot of money!
Sounds like you have no idea what is involved in an audit. Apple has over $100 Billion to audit. Trust me it didn't have to hire 50X as many auditors.
As a clue - the auditors don't count $1 bills, manually, one bill at a time.
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Auditors are in the business of performing work commensurate to the perceived level of risk. Before even accepting a client, they'll do their due diligence to make sure they're not dealing with scammers/criminals... for all we know, Tether didn't even pass the client acceptance procedures.
Assuming they did, you wouldn't necessarily need a big company to do the audit. However, any auditor worth their salt would see Tether as a risky business and perform more procedures accordingly. That's how they get comfort over putting their name on the audit report.
The more I think about it, it seems likely that Tether has some or most of the funds somewhere -whether it belongs to them or is fully accessible is another story.
Another potential reason for losing their auditor is a question of liabilities. Tether claims that they have no legal obligation to redeem Tether for USD.... therefore, an auditor would disagree wholeheartedly with how they have classified all outstanding tokens as liabilities on their balance sheet (https://wallet.tether.to/transparency). It's possible that Friedman LLP told them that they couldn't record this as a liability unless they planned to redeem the tokens.. which Tether wouldn't want to do, as the redeemed tokens would then have to be treated as income to them!
All in all... it's a unnecessary mess. If Tether was legit, they could easily prove it.
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That's part of the issue I think. Crypto being unregulated, there isn't any specific amount that has to be held in cash. I think if I were Tether, I would be erring on the side of caution in my holdings. They are poised to be the peg for USD for long term. There's big money in that. If they tried to make money in the short term by risking backing funds in investments or by inflating beyond their holdings, they may have blown a huge opportunity.
I think when the dust settles, it will be clear that you need more than 10% in backing holdings. Crypto is volatile, and full of super low-fee day trading. I think that justifies having a peg with a more conservative backing strategy.
Appreciated reading your thoughts.
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I partially disagree - the fact that crypto is unregulated isn't the main issue. Even if regulations existed saying that 1:1 ratio in cash needs to be held, Tether would simply operate in a jurisdiction that doesn't require it. regulations must be enforced, and therefore, can always be skirted.
the main issue is that Tether has claimed that they will maintain a 1:1 ratio. regulations or not, they've stated publicly that they will maintain this ratio, to ensure the peg remains.
if they decided to use the cash for something else to make profits in the meantime, that's misleading and dishonest.
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Yeah, I would really hope they weren't investing in other cryptos. I don't think it's a bad move for a company in general, but they are essentially used as a shelter from crypto. If crypto is going down, they're getting volume, if they're also losing money from crypto going down, then that volume is based on backing that is rapidly disappearing.
The issue is that they've filled a need in the market for a dollar peg, and as such, they should be responsible to actually peg to the dollar by holding dollars. Put the money in bonds or something. They could have been a solid piece of the crypto market forever, but short sighted greed might make them nothing more than an unpleasant memory.
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https://steemit.com/cryptocurrency/@tanvirabedin/dogecoin pls follow and upvotes me i also follow and upvotes u....
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you can make followers and upvotes form https://steemengine.net/join?r=1412
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This kind of platform ia extremly helpful specially to those individual who has a very hectic schedule. Hope this community will grow bigger & better. Cheers to those people who intruduce it to others. Let's keep the fire burning guys! :')
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