id	author	title	date	pages	extension	mime	words	sentences	flesch	summary	cache	txt
blog-dshr-org-7142		DSHR's Blog: Stablecoins			.html	text/html	5545	589	80	Initially, Tether claimed that it maintained a stable "price" because every USDT was backed by an actual USD in a bank account. Does that mean that investors transferred around sixteen billion US dollars into Tether's bank account in the past year? Tether adds the USD to the backing for USDT, and issues the corresponding number of USDT, which are used to buy BTC. So Tether issues the corresponding amount of USDT, which is used to buy BTC. Tether has a magic "money" pump, creating USDT out of thin air. So Tether needs to buy more USDT for BTC, which pushes the "price" of BTC down. The top 4 cryptocurrencies (BTC, ETH, XRP, USDT) account for $521B (83%) of the total "market cap"; the others are pretty insignificant. At the time, USDT's "market cap" was around $2.3B, so assuming Tether was actually backed by USD at that point, it lost 37% of its backing.	./cache/blog-dshr-org-7142.html	./txt/blog-dshr-org-7142.txt