posted on Jan, 30 2018 @ 04:10 PM
I am not invested in USDT and would never recommend anyone be invested in an inflationary peg to the USD that directly conflict with US Government
monetary policy, and the Congress' power of the purse.
From what I understand so far, Tether isn't a stand-alone company anymore. They used to be an independent company until Bitfinex bought Tether and
started using USDT on their site as pairings for other coins. However, in this process, something shady has been or is going on. Some people think its
massive embezzlement, others think it's a Ponzi scheme.
No one knows exactly how long some of this stuff has been going on. But there are three major problems here that I can see:
1. They created a counterfeit USD as a crypto peg to buy other currencies, and escape from currencies to a stable coin. That's patently illegal.
2. They had been conducting an audit that they never finished and an outstanding $2.3 billion is in question.
3. They think Bitfinex was printing USDT(since it is naturally inflationary) to pump the coin and buy BTC with it, creating what amounts to billions
of false demand. No one knows the extent of this, and as a result, could crash Bitcoin.
This could be really bad. Does this mean that all other cryptos are in danger? Maybe. Depends on what they are. There are other exchanges that use
USDT as one of their pegs, but the scope is limited to only a few(like on Binance), but those exchanges don't OWN tether and they have no capability
of printing it like Bitfinex does.
S is about to HTF. I'm still holding a few cryptos that I think will weather the storm. Bitcoin will survive, but it's gonna be a brutal next few
edit on 30 1 18 by projectvxn because: Editing grammar mistakes and mistypes