Quote:
Originally Posted by brainz01
That said, I got this article (below) from a friend that recently/coincidentally cashed out his BTC position. I've not fully vetted all the claims in the article, but if I did own BTC, I would want to investigate this immediately. It's an incredibly well-written and thought provoking article, and unusually for anything about crypto, it's actually relatively easy to understand (but I'm still not sure I follow everything).
In summary, the article asserts that the BTC markets (and prices) have been driven excessively up over the past year through the buying of Tether, a supposedly fixed-value coin that may be fraudulent and NOT backed by the dollar reserves the currency claims to have.
An unwind of a potentially fraudulent Tether coin would have multiple crypto market impacts including:
1) Tether coins (with supposed value in the billions of dollars) would likely become immediately worthless
2) The elimination of buying by Tether would reduce BTC trading liquidity by 70%, which would be assumed to have significant negative impact on BTC price, particularly whilst market participants were trying to establish the "real" price of BTC and/or impacts on trading exchanges
3) Investors that bought leveraged BTC positions backed by Tether would potentially be really screwed, though I'm not sure what the margin/collateral requirement for such are.
Anyway, here's the article for your reading pleasure:
https://crypto-anonymous-2021.medium.com/the-bit-short-inside-cryptos-doomsday-machine-f8dcf78a64d3 |
To come back to the op, Tether settlement agreement announced.
https://www.theblockcrypto.com/post/95207/bitfinex-tether-new-york-ag-settlement-lawsuit?
Looks like there were times in the past when Tether was not in fact represented 1 to 1 by USD as presented. Part of the agreement is now Tether has to supply quarterly updates on USDT reserves backing.
One big issue I have with this article is how the author claims shock that no USD is being used to buy on exchanges that literally either do not service the United States, or do not yet have Tether listed... How is that shocking at all? Coinbase still doesn't even have ADA listed.
So now that it is shown that Tether did not have their 1 to 1 reserves at times in the past, but does have a 1 to 1 reserve now, and will have to prove it quarterly going forward, what changes?