Okay. So in the middle of #bitcoin $BTC dalalilama to $40k and beyond, while we are all (including me) exceedingly happy... Humor me and think about #tether for a moment. Let's do it together:
We know that there are "scientific" papers out there that allege that $USDT prints drove $BTC price in 2016/17 and we also know those have been disputed in some ways by other smart people. I have read those disputes and I can see their point too. We also know that...
... @lawmaster, a guy that many people would say is highly trustworthy in this trustless industry (myself included) has "testified" that he has spoken to more than 10 (I think) people who have successfully redeemend money from #tether. We have also seen irregular balance...
... attestations from different (shady or not so shady) actors regarding USD backing $USDT. On top of that, when volume in trading increases, it is logical that an exchange like #binance would frequently require more #tether and "create" them like a bank would...
... Ie BTC is at 10k, someone buys, now another person wants #tether for those BTC, but they are due $39k, so just like that, you need 4x the amount of $USDT to satisfy this. I am not saying that is exactly like money creation at a commecial bank (because it is not), but it is...
... not entirely unthinkable that the #tether prints are being used in this way. In that case they would not be backed by USD, but they would be backed by $BTC. So all this could be dismissed in some way. Plus even assuming that #tether is a criminal operation...
... it is more than likely they have managed to back their entire stock of $USDT with some kind of value that is at least as high or even exceeds it. So I am inclined to say - #tether is fully backed. Also $BTC has of course seen more "real" $ come in too. Now the big BUT...
... Given what the #NYAG alleged in their suit and what they obviously believe they can prove, we also KNOW that at least for a short period of time, $USDT was NOT fully backed. That is a fact. You can ignore it, but its true. At the very least you have to recognize that it is...
... extremely likely that #tether traded or otherwise used the custodied funds of their customers, which is very much not what they promised. Don't know how they are being regulated, but if they are even close to a custodian, laws on these are extremely strict across the world...
...which is probably enough to prosecute them. It also lines up beautifully with the idea of publishing a balance attestation from time to time to show they have assets backing their prints (which I am not even thinking they do not), but not allowing a full audit by...
... a top 4 auditor, who would uncover the trading. So isn't it sensible (just SENSIBLE, hear me out) to think #tehter & #bitfinex did a few things just outside the law that definitely to not line up with being a custodian of customer funds? I think that is a resounding "yes"...
...If this were to be proven, you can indeed expect the US to take harsh action as #tether and #Ifinex are foreign entities (no reason for the US to be kind to them) and they are striking at the heart of US hegemony by attacking their reserve currency. Any cesase and desist...
...would not stop at the US border. This would not be the SEC saying #XRP is a security. This would be the US ensuring a foreign company does not simply print US Dollar. They will enforce it and no exchange, not binance, not huobi and not okex, will want to put a huge target...
... on their back. They will delist it. The carnage in #crypto markets would be considerable. Regardless of what volume estimates you believe, it is safe to say that over 50% of $BTC volume is still done in $USDT. Institutions, US or foreign, would have a huge legal issue...
... in touching #bitcoin if this were to transpire and its price were to crash. The entire space would probably be set back 3-5 years.
Alright. Now back to dalailamaing to $50k and $2k in #crypto land. All this is just FUD. Even FUD is somehting that may be worth THINKING about
Alright. Now back to dalailamaing to $50k and $2k in #crypto land. All this is just FUD. Even FUD is somehting that may be worth THINKING about
Obviously all of this is my opinion/my thoughts. None of it is advice, none of it is factually proven. It's just what keeps me awake about my #crypto stuff and I do have a plan how to protect myself & what to do when it happens. Maybe, just maybe, so should you?
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