<instructions>Your goal is to analyze the following comment and estimate how highly it will be upvoted by the Hacker News community.</instructions><comment><author>abzolv</author><text>&amp;gt; The entire point of Tether is that you can absolutely trust them with $100K, $1M, $10M, or whatever. It&amp;#x27;s backed, it&amp;#x27;s robust, it&amp;#x27;s tethered, and they guarantee payout.&lt;p&gt;No, they don&amp;#x27;t. This is what Tether says in its ToS at &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;tether.to&amp;#x2F;en&amp;#x2F;legal&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;tether.to&amp;#x2F;en&amp;#x2F;legal&lt;/a&gt; :&lt;p&gt;&amp;quot;Tether reserves the right to delay the redemption or withdrawal of Tether Tokens if such delay is necessitated by the illiquidity or unavailability or loss of any Reserves held by Tether to back the Tether Tokens, and Tether reserves the right to redeem Tether Tokens by in-kind redemptions of securities and other assets held in the Reserves.&amp;quot;&lt;p&gt;So, instead of redeeming your $1M in USD fiat, they can give you an equivalent amount of Dogecoin or Chinese commercial paper.&lt;p&gt;Furthermore, they say: &amp;quot;In order to cause Tether Tokens to be issued or redeemed directly by Tether, you must be a verified customer of Tether.&amp;quot; You are not a &amp;quot;verified customer&amp;quot; of Tether if you exchanged USD for USDT at Coinbase or Binance.</text><parent_chain><item><author>jiggawatts</author><text>Statements like this &lt;i&gt;blow my mind&lt;/i&gt;.&lt;p&gt;The entire point of Tether is that you can absolutely trust them with $100K, $1M, $10M, or &lt;i&gt;whatever&lt;/i&gt;. It&amp;#x27;s backed, it&amp;#x27;s robust, it&amp;#x27;s &lt;i&gt;tethered&lt;/i&gt;, and they guarantee payout. The promise is essentially the AAA security of the crypto world, the equivalent to US Treasury bonds or whatever.&lt;p&gt;Meanwhile, the sentiment I keep hearing is yours: &amp;quot;You&amp;#x27;d have to be absolutely nuts to trust these guys!&amp;quot;&lt;p&gt;Which is not only diametrically opposed to the picture Tether is trying to paint, but it&amp;#x27;s saying that AAA is actually a CCC− and hence that there is &lt;i&gt;nothing&lt;/i&gt; in the crypto world that&amp;#x27;s above, oh, I dunno, B- or thereabouts.&lt;p&gt;But the entire &lt;i&gt;point&lt;/i&gt; of Tether hinges on it being &lt;i&gt;perceived&lt;/i&gt; as AAA.&lt;p&gt;Take for example the US dollar treasury bonds. Even countries and people &lt;i&gt;opposed&lt;/i&gt; to the United States and everything it stands for agree that it is AAA. People that &lt;i&gt;hate&lt;/i&gt; the US agree that the USD is a stable currency and their bonds are secure. Literal enemies, &lt;i&gt;legally at war&lt;/i&gt; will prefer to use USD over their &lt;i&gt;own&lt;/i&gt; currency for many transactions!&lt;p&gt;Meanwhile it&amp;#x27;s hard to find &lt;i&gt;anyone&lt;/i&gt; that hasn&amp;#x27;t apparently drunk crypto Kool-Aid that thinks Tether is anything but a trash fire.&lt;p&gt;It&amp;#x27;s just so bizarre...</text></item><item><author>rwmj</author><text>Apparently you have to bring a minimum of $100K of USDT to get it redeemed into real money.&lt;p&gt;I would say this is an incredibly stupid trade to try because you&amp;#x27;re relying on Tether actually paying out as promised.</text></item><item><author>pjc50</author><text>&amp;gt; redeem at Tether for $1&lt;p&gt;Is the redemption window really open? That&amp;#x27;s something people have been extremely skeptical of.</text></item><item><author>sdgdfgsfdfgsdfg</author><text>The high buy volume at $0.98 is due to arbitrage. This is to be expected before the final crash.&lt;p&gt;People are using the opportunity to net an instant 2% return. Buy $10M USDT at $0.98, redeem at Tether for $1, take home $200K of profit instantly.&lt;p&gt;Thing is, this will only last until Tether runs out of liquidity. Then all bets are off.</text></item><item><author>Animats</author><text>Tether is back up to around $0.98, but volume is high. Somebody is pouring cash into Tether to support the price.&lt;p&gt;Similar over at UST. Price is back up to $0.60, but volume is far above normal.&lt;p&gt;Remember, with a stablecoin, &lt;i&gt;there is no upside to holding&lt;/i&gt;. Any indication of risk means it&amp;#x27;s time to get out. Even if Tether has enough reserves to get the price back to $1, there will be substantial cashing out.&lt;p&gt;That&amp;#x27;s why a stablecoin has only two stable points: 1 and 0.</text></item></parent_chain></comment><story><title>Tether starting to lose its peg too, after Terra did</title><url>https://community.intercoin.org/t/what-backs-a-currency-terra-luna-drops-nearly-100/2518</url></story>
<instructions>Your goal is to analyze the following comment and estimate how highly it will be upvoted by the Hacker News community.</instructions><comment><author>vkou</author><text>&amp;gt; 
But the entire point of Tether hinges on it being perceived as AAA.&lt;p&gt;No, the entire point of Tether hinges on everyone pretending that it&amp;#x27;s AAA, and just letting the Tether money printer lift all crypto boats.&lt;p&gt;Anyone paying attention knows its a fraud, but are happy to look the other way, because it&amp;#x27;s the reason BTC is $30K, instead of $600 right now. Sure, they&amp;#x27;ll lose whatever they have invested at the moment when the house of cards collapses, but if you can&amp;#x27;t predict when the music will stop, the smart move &lt;i&gt;today&lt;/i&gt; is to keep playing.</text><parent_chain><item><author>jiggawatts</author><text>Statements like this &lt;i&gt;blow my mind&lt;/i&gt;.&lt;p&gt;The entire point of Tether is that you can absolutely trust them with $100K, $1M, $10M, or &lt;i&gt;whatever&lt;/i&gt;. It&amp;#x27;s backed, it&amp;#x27;s robust, it&amp;#x27;s &lt;i&gt;tethered&lt;/i&gt;, and they guarantee payout. The promise is essentially the AAA security of the crypto world, the equivalent to US Treasury bonds or whatever.&lt;p&gt;Meanwhile, the sentiment I keep hearing is yours: &amp;quot;You&amp;#x27;d have to be absolutely nuts to trust these guys!&amp;quot;&lt;p&gt;Which is not only diametrically opposed to the picture Tether is trying to paint, but it&amp;#x27;s saying that AAA is actually a CCC− and hence that there is &lt;i&gt;nothing&lt;/i&gt; in the crypto world that&amp;#x27;s above, oh, I dunno, B- or thereabouts.&lt;p&gt;But the entire &lt;i&gt;point&lt;/i&gt; of Tether hinges on it being &lt;i&gt;perceived&lt;/i&gt; as AAA.&lt;p&gt;Take for example the US dollar treasury bonds. Even countries and people &lt;i&gt;opposed&lt;/i&gt; to the United States and everything it stands for agree that it is AAA. People that &lt;i&gt;hate&lt;/i&gt; the US agree that the USD is a stable currency and their bonds are secure. Literal enemies, &lt;i&gt;legally at war&lt;/i&gt; will prefer to use USD over their &lt;i&gt;own&lt;/i&gt; currency for many transactions!&lt;p&gt;Meanwhile it&amp;#x27;s hard to find &lt;i&gt;anyone&lt;/i&gt; that hasn&amp;#x27;t apparently drunk crypto Kool-Aid that thinks Tether is anything but a trash fire.&lt;p&gt;It&amp;#x27;s just so bizarre...</text></item><item><author>rwmj</author><text>Apparently you have to bring a minimum of $100K of USDT to get it redeemed into real money.&lt;p&gt;I would say this is an incredibly stupid trade to try because you&amp;#x27;re relying on Tether actually paying out as promised.</text></item><item><author>pjc50</author><text>&amp;gt; redeem at Tether for $1&lt;p&gt;Is the redemption window really open? That&amp;#x27;s something people have been extremely skeptical of.</text></item><item><author>sdgdfgsfdfgsdfg</author><text>The high buy volume at $0.98 is due to arbitrage. This is to be expected before the final crash.&lt;p&gt;People are using the opportunity to net an instant 2% return. Buy $10M USDT at $0.98, redeem at Tether for $1, take home $200K of profit instantly.&lt;p&gt;Thing is, this will only last until Tether runs out of liquidity. Then all bets are off.</text></item><item><author>Animats</author><text>Tether is back up to around $0.98, but volume is high. Somebody is pouring cash into Tether to support the price.&lt;p&gt;Similar over at UST. Price is back up to $0.60, but volume is far above normal.&lt;p&gt;Remember, with a stablecoin, &lt;i&gt;there is no upside to holding&lt;/i&gt;. Any indication of risk means it&amp;#x27;s time to get out. Even if Tether has enough reserves to get the price back to $1, there will be substantial cashing out.&lt;p&gt;That&amp;#x27;s why a stablecoin has only two stable points: 1 and 0.</text></item></parent_chain></comment><story><title>Tether starting to lose its peg too, after Terra did</title><url>https://community.intercoin.org/t/what-backs-a-currency-terra-luna-drops-nearly-100/2518</url></story>