First and foremost: I don't trust Tether anymore than I trust my junkie brother in law.
But this sub's reaction to the recent USDC - attestation post has me concerned we're putting too much "trust" in these massive crypto-banking entitites.
Circle/ USDC recently disclosed it's full holdings - In a self-attestation.
Important Note from the attestation:
As of June 30, 2022 at 11:59 PM Pacific Time, unaudited:
In the largest post talking about the recent disclosure the vast majority of comments were incredibly positive about circle releasing this information and praising them for "doing the right thing" and taking a step forward for stablecoins.
The problem is, this attestation means absolutely nothing without an independent audit.
The funny thing is...
Circle previously did regular reserve accountancy reports from Grant Thornton:
But these stopped in April 2021.
https://www.circle.com/blog/usdc-reserve-attestation-report-from-grant-thornton-llp-april-2021
April 2021 USDC marketcap - 14.6b
July 2022 USDC marketcap - 55.b
We've not had a single reserve report from Grant Thornton during this explosive growth period.
Now compare that to Tether recently disclosing it's full holdings via an "Independent" accountant report.
(Yes yes I am fully aware t's some bullshit Cayman Island Accountant that shouldn't be trusted either but how is that worse than just claiming the shit yourself?)
https://tether.to/en/transparency/#reports
This sub, understandably, rallied against the tether post about this announcement and basically straight up denied any of it exists (it might not) and that Tether is definitely insolvent because they won't do a full audit.
I'm not saying any of you should believe Tether - I FUCKING DON'T.
And if you asked me to choose between the two, like most of you, of course i'd choose Circle and USDC but that doesn't mean we should inherently "trust" them just because they're "better" than tether as that's such a low fucking bar.
tldr: USDC has grown to become a behemoth in the crypto space and hasn't audited their reserves since ballooning nearly 4 X in just 12 months after years of regular audits.
Self-attestation is not an audit.
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