> managing to maintain it. The allegation is that it's not fully backed.
Which means if there's a run on the currency, those backing assets might not actually be able to be liquidated at a price that can back the withdrawals. Aka, the peg is only good if there's no run on the currency - allegedly anyway. I personally wouldn't trust it.
Ah you see they don't actually have any obligation to cash out USDT to USD at all if it would cause them issues. It's right in the contract.
For all the talk of fiat and money printers it's crazy how central USDT is to the crypto markets. I suppose people are willing to overlook a lot to avoid tax exposures...
>I suppose people are willing to overlook a lot to avoid tax exposures...
I don't see how that's the case? Doing any sort of trade is a taxable event. The tax is due in the year that the trade was made, not when it hits your bank account.
The allegation is that it's not fully backed.