Hacker News Reader

The problem with Tether is that they are tight-lipped about their backing assets. No one knows if the peg is real, it's just "trust me bro"

View on HN

Well they publish attestations from third-parties, but no full audits, so sure they could be much more transparent.

But the claim about USDT ever claiming that its supply wouldn't increase is pure fantasy. It literally makes no sense if you understand how the peg is maintained (technically by minting and burning tokens).

I took their comment to mean that tokens valuations are tied to stablecoins. Sufficiently tied enough as to be de facto properties of tokens themselves.

Also interesting that tether is the private largest holder of gold at 14 billion $ xaust

Reply on news.ycombinator.com