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Comment by udev4096 | Hacker News Reader

Bullshit. The biggest stable coin, Tether, is pure scam. They are essentially creating money out of nowhere. They were found guilty of massive fraud and were fined $18M [1]. They refuse to get audited by a third-party [2]. The ones that do audit them are just as sketchy as them [3]. I would recommend watching this video to grasp the scope of their fraud [4]

[1] - https://coingeek.com/tether-bitfinex-prohibited-from-operati...

[2] - https://ecoinimist.com/2024/09/20/concern-over-tether-audits...

[3] - https://finance.yahoo.com/news/sec-fines-tether-former-audit...

[4] - https://www.youtube.com/watch?v=-whuXHSL1Pg

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Counterpoint. Tether has grown into one of the most profitable, well funded companies on the planet. Their past growing pains are irrelevant to where they are now. They make $30-50 million per day with just 200 employees. They are the 18th largest holder of US debt, ahead of UAE and Germany. Last year, Tether achieved $14 billion in profit, surpassing Pfizer, Tesla, and BlackRock. https://www.bitget.com/news/detail/12560604740855

The pinnacle of fake it till you make it. Still a scam.

How exactly is it a scam now? Did they somehow fake treasury purchases? Can you describe something scam like about their business which doesn't also apply to JP Morgan?

If you wouldn't be so goddamn lazy, you would know, after searching for a minute that there is NO dollar backing. It's all just words. They have been caught with their pants down numerous times. Either you are a paid tether shill or you are actually that dumb

Ad hominem is as ad hominem does.

So they own fake treasuries?

Your argument is “ah yes, it’s a scam, but look how much money it makes”

That doesn’t make it…less of a scam. I bet drug kingpins make bank too, doesn’t make them any more valid.

define scam.

> They make $30-50 million per day with just 200 employees

Right, but isn't this... bad? Like so bad that it could bring down the entire capitalist system if it is allowed to grow unchecked?

Aren't you the definition of delusion. The past matters for a reason, it's the indication of how they started their fake scam. Sure, hard to touch them now but once a crook always a crook and taking pride in that shows your immoral nature in this late stage capitalistic era where money negates all the bad things you did in the past

There are other stablecoins that aren't scams though, like USDC. I think Stripe would probably either create their own USD stable or partner with Circle.

Isn't coingeek big SV shills? The whole thing is a fraud starting with its creator Craig Wright.

Even if they were a fraud, at this point they've made enough money that they could be well capitalized. I'd love to know if they were a fraud (and I suspect they were), but I suspect they got past the "fake it until you make it" hurdle.

Tether had a big chunk of funds seized by a government/bank making them less then whole. They did the needful to get past that and now a distant memory. Scam allegations are made by old curmudgeons who drank the bitfinexed cool-aid.

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