Bitmex Uncovers Possible Evidence Tether Backed by USD in “Crypto Utopia”
IDC has expressed on other channels in the past our disappointment with fractional reserve banking and the Federal Reserve's Handling of USD thus far. With this being said we feel Tether is more likely to be credible compared to the Federal Reserve. For years the Federal Reserve has allowed fractional reserves systems to depreciate the dollar.
Aside from a somewhat recent hack that may or may not be suspicious, tether has given us no reason not to trust it. Also, late last year Tom noticed the dump of Bitconnet’s market Cap on Nov. 4th 2017 correlated with the start of tethers own 156% rise in the several weeks following, as seen in the screenshot below. Of course it's somewhat common sense that a good portion of the market cap of bitconnect would pour into USDT upon it's collapse(and of course bitcoin's correction as well), but it seems as though many people and/or media outlets don't take it into account enough (or at all) when doubting Tether's legitimacy.
Then, just a few months later Bitmex shed light on the possibility that Tether is indeed backed by USD in a province of Puerto Rico known as the future “crypto utopia”. It is the Bitmex team’s belief that struggles related to regulations are the real reason for the lack of transparency Tether has been accused of.
Bitmex explains that, “if Tether is accepted as a client, it may violate the banks’ compliance procedures such as rules meant to prevent money laundering...” because of this, “We suspect that Tether may have struggled to find appropriate banking relationships and may have had accounts with many banks in many jurisdictions as it tried to find the right partner.”
https://blog.bitmex.com/tether/
In the eyes of IDC and hopefully others if this speculative theory is proven to be true it would seem like tether has been trying to do the right thing by their customers and country all along. Where the blame truly would lie in that case would be in the hands of regulators who’ve have thus far made it a struggle to do things legally while guaranteeing transparency.
“A typical vice of American politics is the avoidance of saying anything real on real issues.” -Theodore Roosevelt
With history being what it has been where do you put your trust?
°Br¡tT^N¥° (@TheJadeCrow on Twitter)
and Tom (@MyEmpireOfShit on Twitter)