This Is What We Know About How Tether Works – Odd Lots
2022 has seen numerous crypto disasters, most notably FTX. Also the price of most coins has tumbled massively. One coin that's done fine is the stablecoin Tether, which is interesting, because its had so many naysayers for so long. There are even hedge funds who have bet on its implosion. But what is Tether? How does it work? And where does it come from? On this episode of the podcast, we speak with Bennett Tomlin, co-host of the Crypto Critics' Corner podcast, who has an encyclopedic knowledge about the company. He walks us through what we know about the entity, and its relationship with other entities in crypto.See omnystudio.com/listener for privacy information.
I recently went on Odd Lots to discuss how Tether works.
If you would like to subscribe to my free newsletter then please go here.
If you want the posts from this blog delivered to your inbox:
I also have a Discord server that you can join here.
Bennett's Blog 
If the BFX token represents equity in the bitfinex parent , have any financials been issued for the perusal of those who exchanged their tokens for equity? Have there been any management reports? Distributions? Is there a market in these tokens If so , presumably the equity can be roughly tracked . Is there anything to be gleaned from all this?
LikeLike
The token itself was exchanged through special purpose vehicles for shares in Bitfinex. Presumably shareholders receive additional insight, but I do not know what
LikeLike
Isn’t remarkable that presumably hundreds , if not thousands of people received these equity interests and yet there is silence . These equity interests almost certainly went to US persons . One would think that would be a pretty straightforward matter of interest to the SEC ( and other national regulators ); but I am unaware of any regulatory interest in this regard . Finally , if these equity interests were tokenized how did they avoid developing a secondary market? In such circumstances sellers almost always post the information they have on the securities they want to sell. Good odd lots interview BTW.
LikeLike
There was a secondary market in the token on Bitfinex, some sold for as little as like 0.40 on the dollar. There was also a secondary market for the equity with Bitfinex execs saying there was an “Asian investor” willing to buy their equity if they converted.
Thank you
LikeLike