Tether Says Stablecoin Is Only Backed 74% by Cash, Securities

Re:Tether Says Stablecoin Is Only Backed 74% by Cash, Securi... by easymodex on Wednesday May 01, 2019 @07:01AM (#19796003)

I don't know the right number but I do know of at least 2 acquaintances who lost all their families life savings. The legal process to get the money back is actually still ongoing but during that time we changed our national currency to euros and those life savings are worth about 10% of what they were back then.

Thing is, with crypto you invest (usually) what you can afford to lose and you accept the risk. With banks most people think it's safe and risk-free so then the impact of losing it all is so much harder, it ruins lives.

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Re:Tether Says Stablecoin Is Only Backed 74% by Cash, Securi... by village-idiot on Wednesday May 01, 2019 @11:24AM (#19797911)

You're describing a different process.

People lost their life savings because they purchased assets that went down, or they lost their jobs in the general economic downturn. Nobody lost their life savings because their bank suffered a run and their deposits were lost.

To extend the metaphor, this is the difference in getting wiped out in the 2017-2018 crypto crash, and getting wiped out by Mt. Gox.

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Re:Tether Says Stablecoin Is Only Backed 74% by Cash, Securi... by easymodex on Thursday May 02, 2019 @02:34AM (#19805304)

Im not describing a different process, they had their money in a savings account on a bank that went under, they have been liquidating it's assets since the 2008 crisis to repay people and it's still not done.

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Re:Tether Says Stablecoin Is Only Backed 74% by Cash, Securi... by village-idiot on Thursday May 02, 2019 @11:21AM (#19808801)

Which bank?

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