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A comment on Crypto.com Will Delist Tether in Canada. Parent comment

Re:Crypto.com Will Delist Tether in Canada by JumpCrisscross on Tuesday January 10, 2023 @10:15PM (#34334630)
> How is this issue relevant to keeping vs. losing the treasury funds?

It's relevant to the difficulty of launching and operating a U.S. dollar stablecoin.

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Re:Crypto.com Will Delist Tether in Canada by yreg on Wednesday January 11, 2023 @06:32AM (#34337338)
Fine, operating a stable coin is not trivial.

What I meant by saying 'it seems easy on paper' is that the need to be profitable shouldn't force you to make decisions which eventually lead your treasury to not being valuable enough to back the minted coins.

Also: Perhaps I don't understand how tether works, but I don't see why they need to be liable for holding customer funds. Why do they need a deposit/withdrawal process at all? Can't they just do the following?

IF USDT on open markets is <$1 THEN buy coins and burn them

IF USDT on open markets is >$1 THEN mint coins and sell them

And then they can do whatever they want with the treasury, no? Store it in banks or buy US treasury bonds, etc. Just don't lose it.

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