Thread by @ruidasilva

🧵 1/ Tether is the biggest ticking time bomb in crypto — and most people still don’t get it.

They’re printing fake dollars to pump BTC — and it’s happening right under your nose.

Here’s how the scam works. No nuance.
👇

⸻

2/ What is Tether?

Tether (USDT) is a “stablecoin” — a crypto token that’s supposed to always equal $1.

They claim every USDT is backed 1:1 with real U.S. dollars.

But here’s the truth:
They’ve never had a full audit. Ever.

⸻

3/ You can’t redeem it.

Unless you’re a corporate insider with $100K+ and full KYC, you can’t redeem USDT for actual dollars.

Retail can’t touch the supposed reserves.
They just trust the peg will hold.

⸻

4/ So how does a scam like this go undetected?
1.Tether prints unbacked USDT out of thin air

2.Sends it to exchanges
3.Buys BTC and altcoins
4.Prices pump
5.Retail FOMOs in with real money
6.Insiders exit into real assets
7.Repeat

⸻

5/ Why doesn’t anyone stop it?

Because prices go up.
Exchanges profit.
Traders cheer.

Everyone pretends it’s real — because the number keeps going up.

As long as it trades at $1, the illusion works.

⸻

6/ What are the red flags?

🚨 USDT supply keeps rising — even in bear markets
🚨 Market cap increases with no matching fiat inflows

🚨 Still no audit — years later
🚨 Reserves include crypto, loans, and mystery paper
🚨 Brief depegs during panic (e.g., May 2022)

⸻

7/ What’s really backing USDT?

Not cash.

They’ve admitted to holding:
•Loans to sister companies
•Undisclosed commercial paper

•Crypto collateral
•“Other investments”

🧾 They’re backing a fraction of a dollar with IOUs and risk.

⸻

8/ This is fractional reserve banking — on steroids.

In normal banking, $1 might back $10 in loans — but there are rules, audits, and regulators.

Tether operates in offshore shadows.
No audits. No supervision. No consequences.

It’s a digital central bank, printing fake liquidity into crypto.

⸻

9/ Where does all this fake money go?
•It’s used to buy BTC
•It floods exchanges to fake volume

•It props up altcoins and DeFi
•It ends up in your wallet while you think you’re holding real money

But you’re not. You’re holding smoke.

⸻

10/ Why this matters:

When Tether collapses:
•BTC tanks
•DeFi collapses
•Altcoins implode
•Liquidity vanishes

And everyone will say “we had no idea” — but the signs were everywhere.

⸻

11/ This isn’t a theory. It’s happening.
•Supply keeps going up
•No audits
•No redemptions
•No enforcement
•Everyone looks the other way

Because the chart is green — until it turns red.

⸻

12/ And what do they do?

They issue “attestations.”

It’s not an audit.
It’s just an accountant saying:

“As of this one day, we were told these assets existed.”

Nothing is verified. Nothing is continuous. Nothing is audited.

⸻

13/ Attestations are smoke and mirrors.

•They don’t verify ownership
•They don’t assess risk
•They don’t test over time

Tether could show a screenshot of a bank balance and call it a reserve.
It’s accounting theater — not transparency.

⸻

14/ Meanwhile, the printer keeps running.

Billions more USDT flood into exchanges.
No dollars ever seen.
No regulator steps in.

And retail users keep trading, thinking it’s real money.

⸻

15/ This doesn’t end with a warning.

It ends with a crash.

When confidence breaks, it will be fast.

When redemption fails, it will be brutal.
And when the peg dies, everything that depends on it dies with it.

This is the core fragility no one wants to talk about.

⸻

16/ Share this thread.

Don’t wait for the documentary.
Don’t wait for the lawsuit.

Don’t wait for the apology tour.

By then, it’ll be too late.

USDT isn’t a dollar.
It’s a bluff.
And the house never had the chips.

🧨