Tether

“Steven over at WAP says, we're excited to announce that Tether, the largest stablecoin company in the world, is making a strategic investment of two hundred million into WAP, valuing us at about six billion dollars.”

“They also launched their US focused stable coin this week to compete with USDC. The new token is known by its ticker USAT. Cantor Fitzgerald, which already manages the reserves of Tether's mainstay, a hundred and eighty six billion USDT stable coin will do the…”

“It's not currently compliant under the genius act in the U S and so it doesn't follow those same hundred percent reserves in short term U S treasuries is my understanding.”

“There are five hundred million people using US dollar backed stablecoins from Tether all around the world, all over Africa, all over Central America, all over Asia, number one.”

“His user base is growing by thirty million users a quarter.”

“Upwards of more than 95%.”

“Gold is up because there are many more net new buyers. Who is the most important net new buyer? It's Tether. Tether has been issuing a stable coin called Tether Gold, where they'll actually custody the gold on your behalf, and it's the amount and volumes of it…”

“This year, they'll be the fourth largest purchaser of US treasuries.”

“It will, it'll, to some extent, commoditize the issuance layer because it'll be easier for new issuers To emerge and create their own stable coins that, that are also user, you USD denominated to the point that those new stable coins are somewhat fungible and …”

“And so Tether, from a net income basis, makes more money than most financial institutions. I think it's, would be the third most profitable financial institution in the world.”

“Tether will under this act will have three years to come on shore. But the bottom line is they will have to operate in the United States.”

“Tether should just go public in America and be done with it.”

“If you look at Tether, last year they made over ten billion dollars of profit with a small team.”

“Tether alone was the seventh largest buyer of treasuries in the past year.”

“Tether is the top gray swan in crypto.”

“I was just talking to someone who runs one of the larger stablecoin infrastructure companies, and he said that the average dollar value is under a hundred dollars. There's a lot of data, much of it is peer to peer, and there's a lot of anecdotes and data that …”

“And now it's just which chain does USDC and Tether go to? Because they can't duplicate the offline reserves. When the chain forks, they really are going to determine the real chain.”

“So of the two hundred billion, about a hundred and fifty billion are fiat backed stable coins. The largest one is Tether. The second largest one is USDC, and then there are longer tail of others.”

“So if you own USDT, you're taking tether counterparty risk. How do you price that? What return do you need to earn to make that worth your while? If you own USDC, you're taking kind of circle counterparty risk, and you're making a bet on their risk management.…”

“My guess is that Tether is solvent. I don't think it's, it lacks solvency”

“So I think this is the beginning Of the end, not the end of the beginning.”

“I'm not backing off, I just don't want to lose a member of our little quartet here, but I will say that my fraud of the moment, the one that's making my Spidey sense go crazy, is Tether.”

“People hypothesize like Tether is being used to pump Bitcoin. I think that's completely unfounded. It was based on a University of Texas research report, which I don't even know if you could call it fucking research, but it was like a research report where the…”

“Now, the drawback to Tether is that unlike the open source cryptocurrency that I described previously, it's, there's no way for a user of Tether to inspect the code to see that it is doing what it says it does.”

“Now, despite that drawback, Tether has remained remarkably stable over the few years that it's been running, and it laid the intellectual foundation for a class of stable coins that I'll call fiat-backed stable coins.”