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0 pointspuranjay3y ago0 comments

I think what OP meant was why would anyone hold Tether at this point instead of a more transparent and less fudded stabelcoin like USDC

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jimmydorry3y ago

The temptation is too great. If the stablecoin has a non-zero administrative cost, someone has to pay it. And if no-one wants to pay it, then it is going to have to invest a portion of the dollars it holds to make up the difference (and to ultimately reward the creators / seed investors).

There are probably no 100% cash-backed stablecoins.

JohnJamesRambo3y ago

This is the breakdown for USDC. Luckily for crypto, USDC keeps climbing the charts and USDT will be a memory soon. Bad money is always exchanged out for good.

>Jeremy Allaire @jerallaire 3/ As of 12:00pm EST Friday, May 13, 2022, the USDC reserve consisted of $11.6 billion cash (22.9%), $39.0 billion U.S. Treasuries (77.1%), for a total of $50.6 billion (100%), and there were 50.6 billion USDC in circulation

kgwgk3y ago

> $39.0 billion U.S. Treasuries

Par value or market value? If it’s the former the current value is surely less.

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