From an accounting/audit/assurance perspective, things couldn't get much fishier.

Tether is supposed to be entirely backed by US Dollars. 1 Tether = 1 USD. Market cap. is supposed to be ~80 billion.

Tether was supposed to release an audit of its' financial reserves in October 2021, showing that its' stablecoin assets were backed entirely by US Dollars.

That audit was never released, and in the interim the company has come out and said all its' Tether is actuallynotbacked by USD but may be a mix of dollars, treasury bonds and "other financial assets".

The Chief Technical Officer Paolo Ardoino has come out yesterday and refused to show proof of $40 billion of its' assets, saying it is part of the company's "secret sauce". Showing proof of the assets you have on hand are not trade secrets, there is no competitive advantage to be gained by keeping these assets a secret.

Keep in mind the Tether peg was broken this morning (7am US time) and traded at 95 cents, it's back up to 99 cents now.

In the meantime the company has been printing billions of Tether, and has shown ZERO proof that they are backed by anything other than a promise from the Tether owners.

I have been watching this since October last year, and if this crashes it could bring down the whole crypto ecosystem for a decade or more, not to mention contagion to other financial assets.

The catalyst for all of this has been the Fed raising rates by 1%...INTERESTINGtimes ahead for financial markets worldwide, especially given the Fed will be raising rates by at least 1.5% in the next 3 meetings.

Update:

- $6 billion taken off the market cap in the last week.
- The Chief Technology Officer is offering 30% APR on deposits

If that doesn't ring alarm bells I don't know what does.

Watch this space, and if you are foolish enough to have crypto on an exchange it would be wise to put it into cold storage.

its a house of cards that will eventually implode.

the bank for tether is somewhere in the cayman islands and i saw a video of someone analyzing the cash flow and deducing there is not enough cash for it to be backed by the dollar. At best 1/10 of it is backed.

tether is just another ponzi in the crypto world

the only difference is that it is backed by powerful people in the government

Lmao at coincels

Bitcoin made sense a little bit. I remain skeptical about widespread adoption but could definitely see the point especially as it is deflationary.

Ethereum made sense as a technology. I can understand it's potential for decentralized applications.
But it never made sense to me as a store of value or a currency.

Same goes for all the other stuff out there that seem to have technological promise but just dont make sense as a currency.

And then there are y stuff like Tether where it's headquartered in a random caribbean island and is backed by nothing but supposed to always equal 1 USD. It wont sustain itself if there's a large bank run which pushes it over the edge.

I'm looking at old reddit posts where people were talking about Terra/Luna with starry eyes, would use techno lingo to deflect any security concerns.

oh I'd be so happy.

been expecting it to collapse since it's inception.

Link to where CTO is offering 30% APR on deposits. I know where you got that number from and I know you are interpreting it incorrectly.

That being said, Tether is corrupt as fuk and absolutely a scam. They are the cryptos version of the federal reserve.

Inb4 Great Depression 2.0 is triggered by chitcoins

I agree tether has its issues, but raising the argument that they wont show what its held in (assets etc) isn't a horrible thing.

The whole reason UST got ****ed is because they knew EXACTLY where all terra/LFG funds were, and what they were stashed in, and what they were planning to do if a 'bank run' happened. They then used that information to basically cause a bank run and bought into it, and then dumped the market.

Again I'm not a tether maximalist, but I don't think them refusing to show some of their assets that aren't held in USD is a bad thing. Because if they are holding some BTC/ETH or other **** as collateral assets, could have the same **** occur to an extent.

This post.

So tether is backed by a fiat dollar which is rapidly being devalued and on its way out from being the global reserve. On top of that they may not even have the fiat to back tether. What could go wrong?

It doesnt make sense.
And when tether collapses, Bitcoin's going to take a massive hit as well.

Update - Celsius network is headed towards $0, market cap is down from 1.6 billion a year ago to under 100 million today. Tether loaned Celsius >1 billion which is going to put yet more pressure on the Tether price, and Alex Mashinsky (head of Celsius) has just suspended his Twitter account - looks like he will go the way of Kwon Do who rug-pulled Terra and took off with (allegedly) 2.7 billion.

It looks like a volatile time will be had in the markets next week with the inflation print at 8.6% and the Fed meeting on the 14th/15th.

Could see these "stablecoins" coming under a lot of pressure.

I am pretty sure tether was a deep state plant just like everything else but I wouldn't be caught dead holding any.

Where's that ****git sommi?

Wen moon?