It seems like history is kind of repeating itself. The circumstances are different, but Tether is going to use 15% of their profits to buy Bitcoin to hold for an undetermined amount of time. This is after the purchase they have already made. Saw this news today on the Wall Street journal.
Terra USD, Do Kwon did the same thing to have another potential backstop for his algorithmic stablecoin.
Tether refuses to allow an audit and they are backed one to one with short term treasuries, etc. They are also buying before the bull run and IMO are getting a good deal on their Bitcoin purchase.
My question is why do they feel that they should have Bitcoin in their reserves? Are they trying to be more like Microstrategy? It just seems weird to me that they would buy Bitcoin. I understand they are using profits, but why? Is it just to boost their profits?
edit I appreciate the lively discussion. Let’s hope Tether is with us well into the future and we get clarity on reserves from all stablecoin issuers
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