Posted on 11/20/2022 8:55:24 AM PST by PK1991
The inner workings of Tether remain remarkably opaque. New Tethers are supposed to only be minted, and added to the crypto ecosystem, when somebody gives Tether Limited dollars to create them. And if that’s how it all worked, Tether would be fine.
"But there is no evidence Tether actually works this way. We repeat: There is no proof that Tether stablecoins are backed by the store of tangible assets that is supposed to justify their value.
Despite first being released eight years ago, Tether has never been audited in any way. It first promised an audit in 2017…to, you know, happen eventually. How is that coming along? As reported by the WSJ, “Tether Says Audit Is Still Months Away as Crypto Market Falters”:" * * * * "It’s important to state what is happening if Tether is not actually backed by the dollars that it claims. If Tether Limited is pumping out new Tethers without actually taking in an equal amount of USD, then it is essentially a privately-run money printer.
Just manufacture new Tethers, pump them into a crypto exchange, use them to buy bitcoin, then sell the bitcoin for real U.S. dollars.
That would be, in the words of Dire Straits, “Money For Nothing”:" * * * * The funny thing about all of the above is that it’s all really obvious. Tether is apparently run by serial scammers. Its books aren’t open. It’s CEO and CFO refuse public interviews. The company’s unofficial spokesman is its CTO, who is just a developer.
If, as it turns out, Tether turns out to be the next FTX on steroids, the implications for the entire cryptocurrency project are existential. Tether is not just the third largest cryptocurrency in existence, its function as the dominant stable coin facilitating transactions means it is one of the major crutches upon which the entire crypto ecosystem stands.
For this reason, crypto experts tell Revolver that “true-believers” in crypto often turn a blind eye to the dark and damning questions surrounding Tether due to the implications this would have on the entire crypto project.
One crypto veteran we spoke to described the Tether situation in rather vivid terms.
“I have a soft spot for thinking kindly of crypto-libertarians, but they all go Ponzi Mindset when it comes to Tether,” he said. “In order to be congruent and confident in the future they need to believe Tether isn’t a burning bag of shit overlayed on top of a flaming diarrhetic volcano. Everything that in retrospect looks super shady and how-did-they-get-away-with-it-for-so-long for FTX is WNBA-tier compared to the 1994-Olympics Dream Team of Schemes that is Tether.”
That’s the defense of Tether from somebody who uses crypto: that Tether is an obvious scam, but with so much crypto speculation going on and so much short-term profit to be had, it’s better to just not think about it.
So, if Tether is so obviously shady, what might explain its stability even as the surrounding crypto ecosystem burns down? Some key fact is missing.
There is, for example, the strange coincidence of Tether being a crypto of choice for a U.S. government-backed rebels in Myanmar."
I am making coins on the CNC, anybody want to invest in Sageobucks?
Establishment government officials are on the take and also want crypto currencies to fail so they can introduce their own government generated crypto currency for “our safety”. This allows them to track every single transaction you make because the a major compelling reason for current crypto currencies will not exist: anonymity.
great analogy to BCCI..FTX prolly has same sponser.. Clowns
Stable coins backed by USD will eventually be approved for use between large US banks and the Fed but they won’t have anything to do with the uncontrolled Tether system. The Federal Reserve is already rolling out a twelve week pilot program to exchange Digital Dollars between banks using their own blockchain infrastructure that gives them access to all transactions and not annonymous. It may provide some efficiencies over the current system of clearing wire transactions but its all under the Fed control.
Tether is another unregulated, annonymous FINTECH mystery that may survive in the private sector for drug dealers and human trafickers but won’t be approved for much else any time soon.
Sounds like you are over qualified to run a crypto exchange. But, just grease the politicians and you should be good to go!! And move to a sunny beach location like the Bahamas before it implodes of course where no one can reach you despite decades old extradition treaties. The Justice Department is very busy raiding abortion protesters and taking FBI jets to Saranac Lake in the Adirondacks.
Quite an article. This whole crypto thing is so shady.
sure
i have some FTX or tulips to trade
It’s important to state what is happening if Tether is not actually backed by the dollars that it claims. If Tether Limited is pumping out new Tethers without actually taking in an equal amount of USD, then it is essentially a privately-run money printer.
Just manufacture new Tethers, pump them into a crypto exchange, use them to buy bitcoin, then sell the bitcoin for real U.S. dollars.
—
And an audit, pending since 2017, is yet to be conducted in full. Could be some shenanigans.
The common thread in most of these horrendous crypto scams is the involvement of Western Intelligence Agencies and oligarchs such as Soros, along with drug cartels, and surprise, surprise, corrupt Ukrainian politicians.
It would be more tangible and valuable than crypto currency.
“I am making coins on the CNC, anybody want to invest in Sageobucks?”
absolutely ... but only if you’ll accept CatNipManBux 1:1 as payment ... my company is located in Dubai and I personally guarantee that CatNipManBux is backed 100% by actual USD and/or “equivalent” ...
“I GOT FREE CHECKING AT BCCI”
yeah, but did you manage to snag the free toaster when you opened the account?
TI desk calculator.
“Big green numbers and little rubber feet”
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