alt Hacker NewsPersonally I'm skeptical of Tether. But you don't need to trust them to believe that if they permanently freeze Z USDT and then mint Z USDT then their ratio of reserves to USDT is unchanged.
Personally I'm skeptical of Tether. But you don't need to trust them to believe that if they permanently freeze Z USDT and then mint Z USDT then their ratio of reserves to USDT is unchanged.
Well I think you do need to trust them: you are taking at face value their statements and assuming they do what they say they will. What if they mint coins without collateral (they have been caught doing this before), what if they unfreeze coins later (they have done this before)?
These stablecoins are just a database owned by untrustworthy people and backed by nothing but their promises, they're just one step up from NFTs.