What I'm bother about is the how USDT can printed without actually deposited equivalent fiat.
That's a good question Guru...
This is
what USDT is currently backed by (assets composition changes over time)
84%: US government debt... Overnight Reverse Repurchase Agreements (do you know what this is? Me neither)... Term Reverse Repurchase Agreements (Agreements between whom?)... Money Market Funds... Cash & Bank Deposits (0,4% of 84%)... debt of other governments (which ones?)
0,1% Corporate Bonds (= debt of private companies)
3% „Precious Metals“ (probably derivatives, i.e. debt of those financial institutions issuing those derivatives)
3% Bitcoins
4% Other Investments (nobody knows)
5% Secured Loans (loans to whom? secured by what?)
As a USDT user, when you buy a USDT you give them 1 $
Instead of investing your 1 $, why don’t they simply take it and put in the bank?
Because on those assets they earn money.
Who keeps that money?
They do
Who carries
the risks associated with those assets?
You do
Is this a fraud?
No, because they are transparent about it.
But think about this: there are companies managing gold-backed cryptocurrencies that could lease part of the metals backing their coins, earning mountains of money.
The danger of a „bunk run“, with their users and investors asking for delivery of the metals represented by their currencies, is zero.
Instead, these companies keep those metals stored in the vaults - „doing nothing“ - losing tons of money as unrealised gains.
I think it would be more suitable to talk about
integrity than about
fraud