Tether does not need perfect 1-1 backing to work. If there are enough funds for ...

		paulpauper on Feb 3, 2023 \| parent \| context \| favorite \| on: Tether ownership and company weaknesses revealed i... Tether does not need perfect 1-1 backing to work. If there are enough funds for everyone who wants to convert to dollars or to sell on the market, it's fine. There has never bene a situation in which all the reserves are needed. The market depth is big enough that it works. I think this is part of why it has proven so resilient.

That's fractional reserve banking, right? It works, but there's a reason it's regulated.