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Comment by xwolfi | Hacker News Reader

Redemption with who, may I ask: Alameda received 40% of all Tether issued: https://protos.com/tether-papers-crypto-stablecoin-usdt-inve...

Mind blown ?

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Nice find, but wait, if they have/had 60B of Tether, how come they're bankrupt now?

It's because Alameda played the wrong bet: they liked the degen yield farming, got caught with a big hole once the musical chairs stopped (400M loan to Voyager, for instance), printed fake assets to reshore their finances, got caught by CZ who said fuck it, burn, I sell everything you ever gave me, and now whatever USDT they had is slowly being redeemed, but I dont know how much deltec can process.

Thank God, I guess, that they're neighbours in Nassau.

Whats your point here, exactly?

that the next domino that will fall is USDT?

Pretty much everyone in crypto has done business with Alameda. That doesn't automatically make them insolvent.

rereead the article

its 40% of Tether issued on Tron

and you have to understand that Alameda was one of the licensced brokers of USDT. Institutions could mint USDT from Tether via Alameda by using dollars. This is not a loan. Its a 1:1 conversion.

Yup, 1:1 conversion: 1 USD fresh from the fed goes directly to sleep into deltec's savings account and a beautiful USDT is born.

This system is as pure and honest as the virgin mary and there's no way USDT could have been given against shaky IOUs.

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