Crazy how Tether Leaks stopped overnight.
Originally, I had 3 theories:
1. They are legit.
2. They are fake, produced for the lols.
3. They are fake, produced by Tether to discredit Tether Truthers.

We can rule out 2 because of how messy they were. If I had to fabricate emails,
I wouldn’t chose as a recipient a little-known “Nancy” that hasn’t worked at Deltec since 2017. I would pick someone high up the food chain.
This leaves “legit” and “fake, to discredit Tether Truthers”.
Are they legit? The leakers said that they want to talk to a journalist.
But every journalist I know passed. They didn’t have any inside information - everything they published could have been found online.
This leaves us with one source for the fake leaks: Tether itself.
They’ve already used fake accounts before, to discredit @Bitfinexed.
This is why I posted the fake leaked email of Paolo supposedly asking me to act as if the leaks were real. For those of you who like game theory, after my tweet, Tether could no longer come out shouting “GOTCHA SUCKERS”, as that would have validated my fake conspiracy email.
Paolo had a meltdown, accusing me of being a donkey, & Tether’s Twitter account spewed some bullshit about fake leaks and a ransom demand.
Ask yourselves - how would you act if someone was blackmailing you with fake leaks? Would you publish a 5 tweet thread about a nothingburger?
A normal reaction would be to state that fake information being shared online is fake, please disregard. Certainly not give me free advertising as Paolo did.
But because Tether are such amateurs at everything they do, they couldn’t handle my mad game theory skills & shat the bed.
This fits Tether’s communication strategy perfectly. Instead of producing audits that would dispel, once and for all, all the FUD, they are busy with bullshit like doctored podcasts and memes.
Truly the behaviour of a company that supposedly has $35B in custody.

TRUE DONKEYS.

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More from @Tr0llyTr0llFace

2 Mar
This meme of "dollar isn't backed" just won't die in the sterilised bubble of Bitcoin bagholders' echo chamber.
Fiat currencies are all backed by debt - very overcollateralized, even. A thread.
Dollars are created when anyone - you, me, Boeing Corp - takes out a loan from a bank.
When you sign your mortgage contract, you get your $200,000 - and the bank gets the right to get repaid that $200,000 plus interest, over time, by you. So the $200,000 in your pocket are backed by your own fiduciary duty to repay the debt you contracted when they were created.
In fact, the net amount of fiat created by banks is zero - because all money in circulation will be used to repay the debts that were created when it was issued. This creates a perpetual demand for fiat - people will do whatever they can to get fiat to repay their debts.
Read 12 tweets
27 Feb
The latest Tether leak is an email from Tether to Deltec, dated May 3, 2020, asking for help in "presenting their reserves in the best possible light". Their reserves being stakes in other crypto companies, and things in that area. This is a crucial piece of the puzzle. 1/n
Tether started printing like crazy in March 2020, as the market was getting destroyed because of the coronavirus. At the same time, Binance decided to switch from Bitcoin to USDT as collateral for leveraged trading. I always wondered what each party got in that deal. 2/n
It looks like Tether got a stake in Binance. In exchange, Tether probably ploughed what they had in reserves at that point (they did have some cash) to save the crypto markets from certain death, as everyone was trying to sell their magic Ponzi beans at the same time. 3/n
Read 9 tweets
25 Feb
Crypto victims see a number on a screen and think that because this number exists, it must mean that there’s value that justifies it. And they’re ready to believe any fairytale that validates this belief.
That’s how you get something for nothing. By mesmerising suckers.
Don’t be a sucker. Ask why a thing is worth something - anything. Don’t be impressed by word salads. Everything in this world can be explained with words a five year old will understand. If an explanation can’t part with bullshit like “byzantine fault tolerance”, it’s a scam.
When you buy something, there’s someone who’s selling it to you. That someone has owned that thing for a while, and he knows much more than you about it. So if you think that buying that thing is such a slam dunk, why is that guy who knows much more than you, selling it?
Read 5 tweets
25 Feb
This tweet was a print screen of an alleged email from someone at Tether to someone at Deltec, about business matters.
Yes, it violated Twitter rules as it disclosed email addresses (rule about privacy).
But now I really believe someone has a database dump from inside Deltec.🍿🍿 Image
If they have Deltec’s emails, that’s much, much juicier than just account info. Everything important inside a private bank is done by email, and they never delete them, in order to have written proof of what has been said - in case a client “changes his mind” after the fact.🍿🍿
Deltec must be on fire right now. The simple rumour that someone has their emails will lead every bank on earth to think a hundred times before processing a wire. You do business with a shop like that because you expect they’ll keep their shit together and remain under the radar.
Read 6 tweets
21 Jan
Watch out for the 1st blowup. With inter-exchange arbitrage bots awash with Tether liquidity, spreads have been ultra tight. The first exchange that gets in trouble (BTCUSDT dumping) will attract a shitload of USDT as bots rush in. This USDT will be trapped as exchange collapses.
The reverse might be true, of course, with BTC being trapped.
The bots will then be turned off as their operators panic, and inter-exchange spreads will blow up.
I'm not making this up. This is what happened during the 2007 credit crunch, only much faster because it's crypto.
Because there was so much USDT liquidity, all credit risk had seemingly disappeared from the system. If you could get cheaper Bitcoin somewhere, you bought it, and sold it off where it was more expensive. Inter-exchange spreads went to zero - not to mention derivative products.
Read 6 tweets
21 Jan
Today you’re going to see what happens when liquidity disappears. When you can no longer close a position. When participants stop trusting one another.
USDT printing was good while it lasted. Now Bitcoin is on it’s own. Just overleveraged bagholders trying to sell to one another.
When subprime mortgages started defaulting en masse in April/May 2007, and it was clear subprime ABSs were toast, banks initially pumped the price of those ABSs on the markets, to entice more investors to buy, and offload their bags.
Still wonder why Bitcoin pumped to new ATHs?
The writing was on the wall for a long time. Regulation of crypto coupled with Tether being a fraudster's den.
You had warning shots: STABLE act, self-hosted wallet KYC, NYAG lawsuit. You had bombshell revelations of money laundering.
NOBODY LISTENED BECAUSE NUMBER WAS GOING UP.
Read 5 tweets

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