The company behind the tether stablecoin has increasingly been lending its own coins to customers rather than selling them for hard currency upfront. The shift adds to risks that the company may not have enough liquid assets to pay redemptions in a crisis.

Tether Holdings Ltd. says it lends only to eligible customers and requires that borrowers post lots of “extremely liquid” collateral, which could be sold for dollars if borrowers default.

These loans have appeared for several quarters in the financial reports that Tether shows on its website. In the most recent report, they reached $6.1 billion as of Sept. 30, or 9% of the company’s total assets. They were $4.1 billion, or 5% of total assets, at the end of 2021.

https://www.wsj.com/articles/rising-tether-...od=hp_lead_pos6

If usdt lose parity in extended period of time, could tip it over.

Current price may be supported by whales to avoid margin call.

This post has been edited by icemanfx: Dec 6 2022, 11:29 AM

Binance CEO CZ on CNBC:

Many big four firms do not know how to audit crypto exchanges.

Auditors basic duty is to verify and validate what is stated in p&l and balance sheet e.g assets, liabilities, revenue, etc.

If crypto couldn't be audited, how could anyone certain of its value?

This post has been edited by icemanfx: Dec 18 2022, 03:21 PM

Likely mean your book didn't follow or complied to any accounting standards.

If crypto value and quantity couldn't be verified or validated, numbers quoted could be whim and fancy.

Certified accountant is trained to audit companies in different industry. As long as account are recorded according to convention and accounting standards, certified accountant could audit.

In all accounts; left side = right side else numbers is creative, unsubstantiated or scam.

The issue with crypto is many numbers are created from thin air, collateralised, etc couldn't be validated or verified. Ftx is a good example; was allegedly worth a few ten billion $ a few weeks before collapsed.

This post has been edited by icemanfx: Dec 18 2022, 11:04 PM

When not if usdt unpegged, will send most crypto to tailspin.

Bank is regulated, crypto is unregulated.

As long as inflow+ reserve > outflow, everything is fine.

Binance's former Chief Financial Officer Wei Zhou did not have access to the company's full financial accounts during his nearly three-year tenure, Reuters reported, citing two people who worked with him.

https://markets.businessinsider.com/news/cu...-report-2022-12

Certified accountant certainly couldn't audit properly.

At current crypto price, unless electricity is free, crypto mining is unprofitable.

Number in circulation just increase at slower rate and could take longer to verify each transaction.

60k BTC was the combined effort of 🐳 and retailers. Will there be more new funding from 🐳 and retailers to push price higher?

Binance is among the largest 🐳.

A major cryptocurrency operated by Circle Internet Financial Ltd. meant to mimic the value of the U.S. dollar dropped sharply after the company said it had $3.3 billion tied up in the collapsed Silicon Valley Bank.

USD Coin fell below 87 cents on Saturday morning, according to data from CoinDesk. The virtual currency, known as a stablecoin, is designed to trade exactly at $1. It is backed by real U.S. dollars and short-term government debt, and sits at the heart of cryptocurrency trading.

https://www.wsj.com/

A collateral damage.

Given uncertainty, it is wise to keep liquidity in safe assets.

This post has been edited by icemanfx: Mar 11 2023, 10:59 PM

Svb bet wrongly on rate.

Recent btc price rise is unusual, likely pushed by binance whales.

When minions all in is about time to exit.

At US 7 cents/kWh electricity, mining cost is about 70k at current hash rate. More coins are mined everyday.

This post has been edited by icemanfx: Feb 25 2025, 12:07 AM

Current btc price is near cost of mining. many miners will shut down their rigs.

This post has been edited by icemanfx: Feb 28 2025, 04:40 AM