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The Tether Scandal: The Biggest Threat To The Crypto-Ecosystem June 22, 2021 - good read..The Crypto Ponzi to make the Fed proud / Liquidity Meltdown Tether is essentially backed by 2.9% cash, which is much different from
the 100% cash backing they previously claimed. Unfortunately, the
majority of crypto traders are too focused on their desire for the
market to go up, than to admit the uncomforting truth, that Tether doesn’t have sufficient reserves and is propping up the entire crypto market with fake money. Excerpt- To calculate the true value of Bitcoin, we must remove Tether and all of
its fake money from the equation. I would assume Bitcoin would erase
most, if not all, of its bull market gains, when Tether eventually exit
scams. Ethereum and Ripple Execs voicing concern.Even the leaders of some of the largest cryptocurrencies are voicing their concerns over Tether. I’m sure if Satoshi Nakamoto was around, he would agree too. On The Tim Ferriss Show, Vitalik Buterin said: “I think the Bitcoin ecosystem does have its own […] ticking time bomb demons too, like Tether is one example.” Earlier this month, Brad Garlinghouse and Chris Larsen’s attorneys requested the SEC to Investigate and obtain important documents from iFinex, the same Chinese firm that operates Tether and Bitfinex. Excerpt- In short, US regulators are considering new legislation that will define stable coins as securities. If the bill is adopted, Tether will likely face a lawsuit from the U.S. Securities and Exchange Commission, which could be another nail in the coffin. The big question is, what happens when Tether is busted? No one can predict the future, but we can make calculated assumptions based on the data we have. It’s overwhelmingly evident that Tether is the glue holding up the crypto markets. With its insolvency, we will likely see a crypto-liquidity crisis which will create extreme levels of panic and fear amongst investors. The money won’t just flow to other stable coins, but rather destabilize the entire market. Seeing how dependant top exchanges are on USDT, also highlights how much of the market is dependant on fake volume, and fake demand, which isn’t sustainable at all. If the crypto community isn’t sufficiently preparing themselves for Tether’s insolvency, we could see a doomsday-like event in the markets. This includes exchanges halting withdrawals, trading paused, excessive panic and fear, prices plunging as investors rush to get out, new government regulations, and banks even freezing all Bitcoin deposits. |
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