COULD TETHER (USDT) LEAD TO THE DOWNFALL OF BITCOIN SEE HOW
There are numerous allegations that Tether has been manipulating #Bitcoin's price upwards for years now by printing unlimited, and unbacked $USDT.
Here is the controversial aspects surrounding Tether, and how it will eventually meet its demise
- Tether is a stable coin that was first launched in 2012.
According to the company, Tether is backed 1:1 with the U.S dollar, although this isn't actually the case.
Bitfinex, and Tether have refused to show audits of their reserves, which is held in offshore bank accounts.
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- In 2019, The United States District Court sued Bitfinex, Tether, and Poloniex for being involved in a massive price manipulation, and fraud scheme in the crypto markets.
In a court hearing, Tether's lawyer admitted the stable coin was only backed by 74% cash, and securities.
- On Jan 15th 2021, iFinex is supposed to submit documents requested by NYAG's investigation.
These documents will be consequential to the case.
- How the scam works:
Tether can print infinite amounts of (worthless) $USDT.
They then inject this into BTC, ETH, LTC, (and others) to cause prices to pump.
Notice how during the months they stopped printing Tether, the market moves sideways or drops significantly.
This graph also shows the extent to which USDT plays a role in Bitcoin's price action over the years.
Without USDT, Bitcoin wouldn't have reached 35K+
