Thread by @Tr0llyTr0llFace

I'd like to help all Tether FUD deniers who are announcing they've proven the FUDsters wrong, by listing the actual FUD items, so that they can base their denying on something. The "it's been proven many times before so I won't detail it here" seriously lacks entertainment value.

First, I'll play the devil's advocate, & list all the FUD that's wrong.
1. There's proof USDT prints correlate with Bitcoin pumps.
Bad FUD. Even if that was the case, USDTs could be legit, with real buyers coming in. Also, Tether could be hiding the pumps by printing in advance.

Finally, some USDTs could be minted to pump Bitcoin, while others would be minted for other activities (arbitrage, money laundering, paying for Chinese prostitutes), and you'd never have any correlation.
2. USDTs are minted on weekends, Tether can't receive wires on weekends!!!

Bad FUD. Tether's customers could wire reserves in advance. Tether could trust its customers and credit them with USDTs (remember - they can always freeze them) before the wires come in. I could find 10 ways to explain weekends, all better than Paolo's "everyone banks at Deltec".

3. USDTs aren't backed.
Bad FUD. Of course they're backed. The question is, by what? Is it real hard cash? Is it customer IOUs, like fiat? Is it Bitcoin? Is it the trust everyone has in the peg?

Now time for the good FUD, the stuff that's actually problematic. Go wild on these.

1. Tether has never done an audit.
Good FUD. They promised they would, but didn't. Plus they kept posting legally non binding bullshit letters that meant nothing. If I were a big institution, I'd find that suspicious and wouldn't trust them with my money. After all, there's USDC.

2. The Bitfinex loan was a big fuck up.
Good FUD. Nobody says this was good, but I'd like to explain why it was awful bad. Tether were saying that USDTs are 100% cash backed. The loan meant they could make the cash disappear at whim. Institutions would never trust that behaviour.

3. They keep flip-flopping about their reserves.
Good FUD. If people supposedly have entrusted you with $25 billion, surely you must have your shit together and can explain where these $25 billion went. If not, it means you're an insider shitshow & nobody else should trust you.

4. USDTs are not legal claims on Tether's reserves.
Good FUD. If you're not a Tether customer (one of the USDT exchanges), in case nobody wants to buy your USDT, you can wipe your electronic ass with them. Even if you're a Tether customer, Tether can do whatever they want.

They can wait for months before redeeming your USDTs, they can redeem them in-kind, with whatever shit they have in their reserves at whatever price they're marking them. Oh you have 10M USDT? Cool, here's 20 ETH valued at $500,000 each. Go wild!
No institution would accept that.

5. They keep making these stupid tweets about how legit they are and how they're regulated by the FinCEN (which is legally a moo point), and then there's the McCormack interview. Again, if I were an institution with billions under management, I would never trust that shit.

Here's my verdict. I worked at an "institution" for many years. My job was mostly reading hundreds of pages of documents per day to decide whether we could entrust somebody with our clients' money on the terms outlined in the documents. If one thing smelled fishy, you were out.

That's the most important rule of banking and investing: understand whom you're giving your money to, & on what terms. If you don't do that very, very well, you won't be investing or banking for long. Tether supposedly has $25 billion, that means their customers are big & smart.

NOBODY BIG AND SMART WOULD GIVE THEM A DIME. Not on those terms.
Trolly out.