but as a business it makes no sense to park that amount in cash.
Bills pay 5% year, cash pays zero, tether is making billions by buying and selling bills while it pays no interest to the guys that hold USDT,
I disagree Stompix
from the point of view of
honest and transparent business it would make a lot of sense parking that amount in cash.
This is what they made their clients believe: that for each USDT there is 1 $ in a bank account. (This is still what many USDT users think)
Not doing it was
ethically questionable (to say the least...)
Now we learn that when you buy a USDT you are
a) financing the US gov
b) financing Tether making
Secured Loans (to whom?)
c) financing Tether's
Other Investments (what investments?)
d) financing Tether's speculations in the precious metals markets
e) financing Tether's speculations with
Overnight Reverse Repurchase Agreement (how many users in this forum know what that mean?)
What's backing USDT? Tether Reserves BreakdownUSDT users and the crypto community in general are convinced that each USDT is backed up by 1 $
Truth is each USDT is backed up by an array of assets which nobody knows the precise value of
The reason for that is that
Tether doesn't offer independent auditsWhy don't they do what they made the world to believe?
Because - as you rightly say - "Bills pay 5% year, cash pays zero,
tether is making billions by buying and selling bills while it pays no interest to the guys that hold USDT"
Making billions out of investing/speculating with the money of clueless USDT users while letting them bear the risks of those investments/speculations...
doesn't look like honest business to me...