Bitfinex and Tether required to end all trading activity with New Yorkers
I&#x27;m so confused why everyone just blindly believes Tether is this whole big conspiracy. I am by no means defending the organization but let&#x27;s just take a step back here:<p>&gt; Where does the funding come from to print tether?<p>When they mint 1 Tether they sell it on an exchange for $1. They don&#x27;t need anyone to upfront lock up $1 and then also sell it for $1...<p>Are stablecoins not just essentially an interest free loan to the minter? That&#x27;s why hundreds of them are popping up all over the place. Minters can go invest that money however conservatively they want and just rack up free interest on billions. Why the hell would they NOT print more if there is demand. Consequently, why the hell would they need to participate in any illegal activity when the can print interest free loans whenever they want?<p>Yes, ideally you&#x27;d prefer someone with this position to be overcollatorized and not simply ensure $1 = 1 tether. But that is the risk you take holding that stablecoin. Pick up DAI if you want an overcollatorized asset.<p>I just don&#x27;t see the incentive for some of the other arguments out there - many imply they are just printing it and selling it for $0 I guess? Or is the argument they just siphon the money to another organization? Because that would be a more valid concern. There just seems to be this assumption that somehow someone is fronting or magically creating value from nothing. No, the market is by buying newly minted Tether on exchanges. That&#x27;s where the funding comes from. How is this not obvious?<p>There is probably a lot more depth to this topic than I am aware of, but some of the top upvoted comments here just seem to be spewing nonsense.<p>tldr; If a stablecoin minter sells a newly minted coin for $1...then by definition there is now $1 available to back that coin. Stop conspiring where the funds are coming from. The worry should be how they are investing said collateral backing the coins from there.