Thread by @SolidusMax

The more they lie about what's backing USDT, the more stable it is. It's a confidence game until the moment it isn't.

https://twitter.com/TDoge_/status/1345298041520197632

In the early days Tether-Bitfinex tried to manage the peg themselves. Eventually they lost control and then designated the peg to each exchange (statement below). There is no single peg. Each exchange must manage their own peg.

What that statement says is only exchanges or qualified corporate customers can aquire/dispose of USDT. When a miner/trader deposits new btc on an exchange (net inflow) and sells it for USDT, the exchange must obtain USDT to balance reserves, otherwise USDT's premium will go up.

Here is Tether-Bitfinex telling a judge that Poloniex never promised 'their' USDT peg was backed 1:1.

It's very common for financial frauds to jump to another scheme after the old one fails. For example Liberty Reserves was created after the failure of an exchange called GoldAge. en.m.wikipedia.org/wiki/Gold_Age

BTC is digital gold X.0, not 2.0. Replicating gold has been tried many times

ICYMI: Liberty Reserve & 7 Others Charged for Allegedly Running $6 Billion Money Laundering Scheme

"The only liberty that Liberty Reserves gave its users was the freedom to commit crimes."