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Comment by cagenut | Hacker News Reader

dead center, first row of their home page:

  Every tether is always backed 1-to-1, by traditional currency held in our reserves. So 1 USD₮ is always equivalent to 1 USD.

Interestingly, that doesn't actually say it's backed by USD reserves, any "traditional currency" in sufficient amounts would satisfy their claims.

It still needs to add up to the worth of the dollars they claim to have in circulation. One 100 trillion Zimbabwe note isn't going to cut it.

Tether doesn't have $2.3 billion Euros in reserve either.