How Tether Can Destroy Us All; warning, ultimate FUD.

If something happens to Tether we lose 80 to 90% of all liquidity in the market. People will panic because 9/10 exchanges have Tether balances and buy crypto on withdrawal; this is researched and established. The entire crypto ecosystem is leveraged UP THE BUTT. Why/How? Because exchanges can give Tether only 1 Bitcoin as collateral then can print 10x the Tether value (1 Bitcoin then gives you 400,000 Tether which exchanges can borrow out to their traders - to buy more Bitcoin with – to give back to Tether – thus getting even MORE leveraged).

If Tether explodes/implodes every single person that trades on a Tether based exchange is double F’d. There would be a bank run on Tether as people panic, the arbitrage on other stablecoins will break down, causing even more panic, as other stablecoins will also lose their pegs (provided their not evenly backed)

Then on Tether based exchanges (if they don't go down from traffic) the Bitcoin price (in Tether) will go towards infinity as people buy up ALL the coins at any Tether denomination. Exchanges will become insolvent with all the Bitcoin's they don't really have - withdraws going to 100% - deposits dropping to 0%. Non-Tether exchange will then panic/realize all Tether exchanges coins are coming their way – so they too will dump to lower their risks.

Tether has pumped/printed 75b USD that DO NOT EXIST – it’s legitimately an existential crisis for the crypto market as a whole. If Bitcoin is priced in Tether and we don't know the value of Tether then we don’t know the value of Bitcoin. This could cause a massive reset of the entire market as a new price points are found; flash crashes and downed exchanges.

If Tether blows - Binance becomes insolvent - it will make the MtGox hack look like a daily candle wick - and could ruin the market for 10 years straight! People believe this eventually will happen, but nobody knows for sure when. Fraud ends badly for everybody involved.

TLDR; Tether is fraudulent - one day it will go awry - there is no such thing as a free lunch.