alt Hacker NewsAnd how do they ‘mint’ 2 billion without affecting the price of tether and without finding 2 billion to back it?
If they can mint with no impact doesn’t that mean they can just print money?
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mcintyre1994 • today at 7:07 AM
Because if they permanently freeze 2 billion in a wallet, that Tether can never move or cash out, so their liabilities go down 2 billion. They can mint an equivalent amount to a non-frozen wallet without affecting their reserve ratio.
And yes they can print money, you have to trust their reserves that are off chain.
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It’s been years since anything Tether minted was plausibly 100% backed by real assets. Both times they’ve been forced to show the books, they only had fractional backing. And they’ve minted tens of billions of tokens since.