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Comment by dist-epoch | Hacker News Reader

When will Tether implode?

I've been reading about how that is imminent here for 3 years now.

As always, "market can stay irrational longer than you can remain solvent". I wouldn't bet on Tether collapsing at any specific time period, but there are so many unanswered questions about how that business is run that a reckoning seems broadly inevitable. We'll see I guess.

Theranos seemed ultra sketchy for a long time before something actually happened.

> ... I wouldn't bet on Tether collapsing at any specific time period ...

I think we are completely missing something in the discussion of stable coins such as Tether and USDC even if they are not equal: while the currency is fixed toward the dollar in the blockchain, they receive interest on the real money they have (whatever real balance it is). This could make them very profitable with time.

My guess it won’t. If you have been following the news, they are under a lot of scrutiny (usa/new york) that I doubt they are the disaster people think they are.

That and they are fully cooperating with regulators (ie: they have blacklist functionality in their smart contract)

tether has an ingenious biz model. take in money from entities that cant redeem thru their service and tether doesn't offer interest on the money lol

Since their assets > liabilities it will wind down rather than impload unless the entire economy imploads.

Why would you assume their assets are worth more than their liabilities

Tether publishes the totals daily.

$94,120,164,388.60 > $90,912,507,793.55

https://tether.to/en/transparency/

The numbers Tether produces don't really make sense. They're widely assumed to be massively fraudulent - although we can't prove this without being able to audit them. And of course their keep pushing back on attempts to do so [1], which pretty much confirms the assumption.

[1] https://blockworks.co/news/tether-pushes-back-timeline-on-au...

Yeah but I can also make a webpage saying I have $10 billion dollars, doesn't mean its a true statement. If it was at least a 3rd party that was auditing it, I would put more stake in it.

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