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RE: Why Tether’s latest statement about its auditor is complete BS
I think you are 100% right in your analysis. One thing that strikes me a little is why the price of whether does not fall more that it actually does. If this is a fraud you can lose everything, if it is not al you can win is less than 10%. Who would do this?
I am speculating, but could it be that they use the dollars they actually own to buy back tether sub par? this would increase the dollar per tether value and could finally lead to the 1:1 relationship being restored if the delta between what is there and what is claimed to be there is not too large.
Thinking about this, the value of tether is clearly too high still to allow this. But it could be of course that they use the existing resources to keep the price high and give people a feeling of "everything ok".
alternatively, they could simply not redeem Tether for USD (which they don't), and then you'd have to hope that any exchanged with USD x USDT trading pairs has enough demand/liquidity to keep the peg.
and of the $2B they're supposed to have, the depth on the kraken order book is barely $6M... and that would drop the price of USDT to $0.30
I have not understood from the beginning why peopled anyway trust them a bit. This is all about trust - if you trust that the money is there - it should be worth 1 USD - but only if you can redeem your USD at least at some point in the future.