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Tether is claimed to be fully backed by USD. If it is not then it quickly ends up being an effective Ponzi scheme.
by coinme 8y ago
Tether is claimed to be fully backed by USD. If it is not then it quickly ends up being an effective Ponzi scheme.
- DINKDINK 8y agoPonzi schemes are 'investment' promises that require ever growing layers of patsies to be recruited for each patsies' pay off to occur. Fractional Reserve is a practice where an institution leverages themselves by only keeping the expected liquidity needs in reserve and using the other capital for other means. Eventually they blowing up, when the market demands the apparent liquidity.