by throw101010 4 hours ago
> It was supposed to be limited in supply unlike fiat, and yet Tether underpins the whole thing and they print that out of thin air all the time.
This is a joke right? Tether (USDT) is pegged to the dollar... and there is not really a limit to the USD printing machine, nobody ever claimed a stablecoin would have a limited supply. It's literally the main critique of the fiat system levied by crypto proponents.
The only asset which has made and still hold promises of not increasing its supply over its limit set through its consensus code is Bitcoin. And it is nowhere close to ever change... as a matter of fact if it changed, most people wouldn't call that fork Bitcoin.
The problem with Tether is that they are tight-lipped about their backing assets. No one knows if the peg is real, it's just "trust me bro"
Well they publish attestations from third-parties, but no full audits, so sure they could be much more transparent.
But the claim about USDT ever claiming that its supply wouldn't increase is pure fantasy. It literally makes no sense if you understand how the peg is maintained (technically by minting and burning tokens).
I took their comment to mean that tokens valuations are tied to stablecoins. Sufficiently tied enough as to be de facto properties of tokens themselves.