I work for the Internet and am an advisor to <a class="tweet-url username" href="https://twitter.com/stripe" data-screen-name="stripe" target="_blank" rel="nofollow">@stripe</a>. These are my personal opinions unless otherwise noted.

Patrick McKenzie

Another very good catch from Jakal. https://t.co/e6arJBDHac

@patio11 Here's an example of just how fragile #tether's balance sheet is.   Liabilities have changed from being the face value of the issued tether's but the redeemable value i.e $0.999 .... so what? that's only a teenie weenie 10 basis points. https://t.co/0VletNDpJT

Jakal

By the way: I do not think we actually know the amount Tether has charged counterparties to redeem historically or will charge in future.

“But they have said higher of 10bps or $1k on their website for years.”

Yes. Their website has said that. Their website has said… things.

But be that as it may Tether has just counted future revenue as part of its reserves to find a minuscule 10bps additional capital buffer.

I work for the Internet, at @stripe, mostly on accelerating startups.

from Patrick McKenzie | by Patrick McKenzie