First, MMMFs target $1/share, they do not promise it nor are they legally beholden to honor it. It's a goal, not a promise.
It also works because the US dollar has been remarkably stable and most of their holdings are USD. No crypto is so stable, with a bunch of them being about the most volatile assets you can lose money with.
> First, MMMFs target $1/share, they do not promise it nor are they legally beholden to honor it. It's a goal, not a promise.
How is that relevant to the claim in question? (Which, if you’ll recall, was whether tether can maintain the peg and redemptions while holding the same assets as MMMFs, which generally do that just fine.)
> It also works because the US dollar has been remarkably stable and most of their holdings are USD.
Okay, now you lost me, and I’m not convinced you have the recent discussion in mind. The original comment was claiming that Tether can’t maintain the peg, because it holds non-dollar assets. I pointed out a trillion dollar industry by that maintains a peg, using those same assets, and you’re saying the non-dollar assets only succeed there because the dollar is stable? Which is somehow an argument about how these assets are good enough for MMMFs to work but not Tether?
Please take a minute to review the thread and see if you’re still supporting the claim I disputed.
It also works because the US dollar has been remarkably stable and most of their holdings are USD. No crypto is so stable, with a bunch of them being about the most volatile assets you can lose money with.