Tether and its implications

in cryptocurrency •  2 years ago 

Hey all. Recently there's been a lot of chatter about Tether, and whether or not it's a scam/insolvent.

Recently, Bloomberg released an article that stated Tether has been subpoenaed by the US Government.

https://www.bloomberg.com/news/articles/2018-01-30/crypto-exchange-bitfinex-tether-said-to-get-subpoenaed-by-cftc

Shortly after releasing it, prices across the crypto market started to fall, as fear over a possible Tether collapse spread. Since then, there hasn't been any big news surrounding Tether, but the chatter remains, and there's a good amount of uncertainty surrounding it. A Tether collapse is widely considered to have major implications on the market and trigger a major market crash.

It seems that many people think it's a near certainty that Tether is insolvent, and that they don't hold over 2 billion dollars in reserve. While this may very well be the case, I think a lot can be said for the fact that the subpoena for Tether was issued December 5, 2017, and they have subsequently printed many hundreds of millions of new Tether.

Charlie Lee posted his thoughts on a recent twitter post:

"With respect to the Tether situation, it's expected for CFTC to subpoena Bitfinex to investigate if there are any wrongdoings. The fact that the subpoena is in December 2017 and they have still continued issuing USDT is good news.

USDT is just like any other altcoin."

https://twitter.com/satoshilite/status/958427996209074176?lang=en

I think personally think that there is a lot of FUD surrounding Tether, and would be inclined to believe that it is not in fact insolvent ...

What do you guys think? Am I right?

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