Tether confirms what we suspected all along. They lend tethers with Bitcoin as collateral. The borrower then buys more Bitcoin and uses that as collateral to borrow more. And this repeats indefinitely.

submitted by /u/Oscuridad_mi_amigo [link] [comments]

source https://www.reddit.com/r/btc/comments/q3f775/tether_confirms_what_we_suspected_all_along_they/