moore is a top 20 accounting firm, you have asserted that tether is not fully backed by usd and their assurance report states that they are. they have provided an independent report that shows all issued tethers are able to be redeemed 1:1.
I already addressed why Moore Cayman is not related at all to Moore itself.
Re: independent report.
At no point in their attestation, or anywhere else, does Tether claim that USDT is fully backed by USD. I don't know why you think this is the case. In their previous attestation, the one which separated cash from everything else,
Tether said they are backed just 2.7% by USD. Let's assume they're telling the truth, for argument's sake.
Now let's get down to the other 97%. Tether does not provide the names of the counterparties or a breakdown of the assets. Tether does not mark those assets to market. Tether can literally say "I have a horse. I think the horse is worth $69 billion dollars. I am going to use this horse for double entry accounting purposes. I put the horse on my balance sheet. Now I have $69 billion dollars of assets. I can issue $69 billion of USDT, which is backed 1 to 1 by my reserves. I have $69 billion dollars of USDT, which are liabilities in my double entry accounting. But I have $69 billion dollars of assets, which is my horse. My books are balanced and USDT is fully backed."
Now you begin to realise why everyone reveals their counterparties. The above story could be used to describe every single accounting fraud from 1600 A.D to now. It's the same story. Enron, mortgage backed securities "worth" 100 cents on the dollar which were actually worthless, etc. It's just an accounting gimmick. If you value your own assets yourself, and you don't reveal what those assets are, you can claim whatever you want and nobody can prove you wrong because nobody except you knows. It's not complicated, it's just fraud.
I just did, doesn't strike me as being in any way odd, just your standard news release denying the author's allegations. Maybe your definitions of "dismiss" and "deny" are different to mine.
I can tell you that their statement is 100% A-grade bullshit which says nothing. Absolutely nothing. They don't deny anything. They don't say anything. They just ramble and allude that it's FUD without actually disagreeing with ANYTHING in the article. Let's go through it step-by-step because this statement is really exemplary in how to run a fraud.
The Bloomberg BusinessWeek piece published today is a one-act play the industry has seen many times before, taking snippets of old news from various places and dubious sources, and making it fit a pre-packaged and pre-determined narrative.
Again, note that they don't say that anything in it is false. They seem to even allude that it's true. They just say "old news" - aka, everyone already knows this.
Crypto—and Tether in particular—are fostering a revolution in financial inclusion, transforming a model that doesn’t work in a modern world. This article does nothing more than attempt to perpetuate a false and aging story arc about Tether based on innuendo and misinformation, shared by disgruntled individuals with no involvement with or direct knowledge of the business’s operations. It’s another tired attempt to undermine a market leader whose track record of innovation, liquidity, and success speaks for itself.
This is meaningless jargon that means nothing. Translation: Tether is great and we're doing really good things. The story "arc" that some people tell about us is false, however we won't go as far as to say anything in that article is false.
The reporter refuses to let the facts get in the way of the story he wants to tell, instead relying on John Betts, the former head of Noble Bank, whom Tether fired as its banker. In an ongoing lawsuit, Betts has also been accused of engaging in egregious and wasteful self-dealing and seeking to enrich himself at Noble’s expense. It shows a complete lack of diligent research and is filled with outlandish anecdotes that are not geared toward ethical reporting but character assassination. This story works hard to discredit Giancarlo Devasini and Tether’s executives with sources that are far from credible. Following the last Bloomberg story, Tether’s CFO has in fact received many messages from those inspired by his story, coming from a medical background to revolutionize the financial industry.
Translation: don't listen to our previous banker. We won't say anything he said is false, though. Also, the reporter was really mean to Giancarlo Devasini who is a really awesome guy and totally has heaps of friends out there who wrote him really nice messages so just ignore the fact he has said a bunch of really dodgy things and done some really dodgy stuff in the past because some people who we won't name said nice things about him.
Tether, its management, and its community are working for a more financially inclusive world. While this may threaten the establishment of traditional financial systems, we will continue to work for the underrepresented.
Meaningless jargon that says nothing.
Here are the facts: All Tether tokens are fully backed, as we have consistently demonstrated. The company has taken a leadership position in transparency, providing quarterly assurance attestations (as recently as the
June 30, 2021 target date) confirming that all Tether tokens are fully backed. And these attestations and statements also confirm the vast majority of the commercial paper held by Tether is in A-2 and above rated issuers.
This is the best paragraph of all. Translation:
All Tether tokens are backed. We won't tell you what they're backed with. For all you know, it might as well be a horse we think is worth $69 billion dollars. Most of our commercial paper is with A-2 and above issuers but despite them being super stable and trustworthy, we won't tell you who they are, tee hee. Also, we know that China rates commercial paper differently and A-2 Chinese paper is essentially junk, e.g. Evergrande being rated A-2 even as it defaulted. But we won't tell you how many of our bonds are Chinese, tee hee.
There will always be a market for Tether as it presents an opportunity for traders to interact with the larger crypto ecosystem. It is a resource for the unbanked, a tool for an evolving payment system, and a leader in driving the mainstream adoption of a new financial revolution. Tether is the most liquid stablecoin on the market, it was the first stablecoin, and it has withstood years of volatility. Tether makes the crypto economy more efficient.
Meaningless jargon that says nothing.
What they didn't say:
- Bloomberg was wrong about anything
- We don't hold Chinese commercial paper
- We don't hold Bitcoin on our balance sheet against which we issue USDT (the CEO of Celsius came out today and confirmed this is the true, even)
- Here's a list of our counterparties
- Here's that audit we've been promising for years and (again) promised we would release months ago
If what they say is inane babble that confirms or denies nothing, pay attention to what they're not saying.
