Shorting Tether
What exactly is hard about running a fiat backed stablecoin? Don't you just accept money for your token and invest it in low risk crap? Isn't this exactly what a consumer bank does? Even Paypal does this [1].So is the issue that they just (allegedly) got greedy and made high risk investments? Can't Google or some company just make their own stablecoin overnight and have guaranteed profit then? Of course only if it fits with their PR.1. https://www.paypal.com/us/webapps/mpp/ua/useragreement-full> Any PayPal balance you hold represents an unsecured claim against PayPal and, except as provided below, is not insured by the Federal Deposit Insurance Corporation (FDIC).    PayPal combines your PayPal balance with the PayPal balances of other PayPal customers and invests those funds in liquid investments in accordance with state money transmitter laws.  PayPal owns the interest or other earnings on these investments.   However, the claim against PayPal represented by your PayPal balance is not secured by these investments and you do not have any ownership interest (either legal or beneficial) in these investments.    These combined balances are held apart from PayPal’s corporate funds, and PayPal does not use these balances for its operating expenses or any other corporate purposes.    Additionally, PayPal will not voluntarily make these balances available to its creditors in the event of bankruptcy.Note: quote obtained by proxy (https://www.paypal-community.com/t5/My-Money-Archives/Does-p...) as Paypal needlessly block my shared IP.