Tether is used as an intermediate in crypto transactions. You buy some Tether, use them in the transaction, and then sell them back. The money you buy them with is invested in US treasuries (about 75%), gold, GROY, cash etc., so they are fully backed by the USD in various forms. It used to be exclusively cash and UST. The genius is that you take money at no cost, and invest it in UST with a United States of America Government Guarantee of repayment, WITH INTEREST!!! The interest funds the eye-watering dividends to the half a dozen owners. $190bn of customer funded investments produces a lot of interest income, or, if you buy gold before the recent rise, capital appreciation. GROY? Just taking a position in a gold royalty company. First time I’ve seen on this forum someone concerned that the share price is rising because a company is buying their shares ….. gold company management can’t do anything right. Memo to gold companies: Never, Ever, let anyone buy a 15% share in your company. Gold bugs won’t appreciate it.
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