One question that always lingers in my mind is:
Is a stablecoin like USDT truly backed 100% by USD reserves held by its issuing company? 🤔💵
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One question that always lingers in my mind is:
Is a stablecoin like USDT truly backed 100% by USD reserves held by its issuing company? 🤔💵
No, not in the strict sense of 1:1 USD in bank accounts. It is backed by a mix of assets, some riskier than others (e.g., loans, Bitcoin). While Tether has improved their transparency, the lack of a full audit keeps skepticism alive.