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Step 5 is where this falls down. Exchange rate volatility would make that impossible to maintain and secondly Freedman LLC would not have confirmed that the money was in bank accounts.
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It's going to be a mixture of customers. A question for you. You probably saw the Tether rich list nrd525 posted on his thread earlier. Of those exchanges holding large amounts of Tether how many accept USD wires? Obviously Bitfinex and Bittrex I know of but I don't frequent the others.
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Why would exchange rate volatility make that impossible to maintain? After all issued Tethers
are never redeemed - otherwise we would have seen the numbers on the transparency page
go down at some point - and therefore it is irrelevant if the basket of cryptocurrencies would
drop below the issued amount.
That this could be a problem in the long-term is obvious.
Regarding the Friedman document I already outlined several possibilities:
-Bitfinex could have provided the necessary funds for the Tether audit from funds of the Bitfinex exchange
-rich individuals could have provided the necessary funds for the snapshot date
-banks could have provided the liquiditiy for the audit
-Tether is completely genuine and all Tethers are 100 % backed by actual fiat deposits (I admit that this is
also possible, but unlikely if mayax and I are correct)
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There are a myriad of possibilities how they could have got the necessary funds for a short
period of time in order to prove their solvency for the snapshot date. After all they run one
of the biggest exchanges in the world and definitely have
good connections. The document was worded very carefully and leaves a lot of room
for interpretation.
Regarding your question:
-Bittrex allows fiat deposits for amounts that exceed 100k $, but only credits USDT to your account if you wire actual USD to them (you probably knew this)
-Binance has no fiat deposits
-Poloniex has no fiat deposits
-Huobi has no fiat deposits since the crackdown of the Chinese government
-OKEx I have no idea, but it should be similar to Huobi
I also have a question for you. Why would Tether start to issue USDT on Ethereum in
addition to issuances on OMNI?