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My Take on the whole Tether situation after some research

My Take on the whole Tether situation after some research

All Cryptocurrencies

by COINS NEWS 27 Views

Obviously this topic is very broad and hard to put into a coherent reddit post, nevertheless, I am going to try and outline as best I can what I have uncovered from the whole Tether situation. Why am i spending my amazing time in lockdown doing this? Well simply put, I feel many people have not done their research and are just jumping on the bandwagon without making up their own minds. Having said that though, I am always interested in changing my mind, so anyone commenting, this is more of a discussion start to learn from each other, rather than a lecture on whats right and wrong. Lets start:

Some background Information

So we know that the crypto space has always struggled getting accepted in the "real financial world" and as a result, exchanges had to work with so-called shadow banks, which from what I can read operates outside the regulated space of financial institutions, and therefore carries a sort of "shadiness" with it (Shadow banks account for roughly 5-10 times the size of regular banks). Tether is the sister company to Bitfinex, which has openly stated, along with almost all of the other exchanges, that they at one stage worked with these shadow banks. Why? Well again, due to the fact that most regulated real world banks did not want to work with crypto companies back in the day.

Lawsuit 1

We know that Bitfinex stored more than 850 million dollars worth of customer funds or "backings" by tether with their shadow bank Crypto Capital. In true shady shadow banking fashion, the full 850 million dollars went missing by crypto capital. Tether is accused of covering those 850 million dollars in some shady way, which is the entire reason why this lawsuit, and with it the January 15th deadline to hand over documents exists in the first place.

The deadline today (15th January 2021) represents nothing more than documents being handed over. Now I do understand that the 2+ million pages that were to be handed over do scream a little bit of shadiness to it, as it sounds like they are trying to bury them with paperwork, It still is important that people understand that this lawsuit is based around the 850 million dollars in crypto capital. These documents will take time to be assessed and as far as I have read, at some stage in mid February, the next meeting will take place to see how they proceed.

Now comes the important distinction:

Lawsuit 2

This second lawsuit is what all the fuss (at least from what I am reading) is all about. The claim is that tether used USDT to manipulate and pump the price of etc or any other currencies artificially. The lawsuit orginally was looking for over 1 trillion in damages, but was very quickly adapted and reduced down to a settlement which would cover the costs of the whole legal expenditures that came with the second lawsuit. In other words, after reviewing the case and the multiple research that has gone into the claims of market pumping by tether, the people behind the lawsuit have altered the lawsuit. This for me at least shows that perhaps the baseless claims of tether pumping the market simply don't hold much water (again just what seems to be from my opinion)

Moving forward

I want to make absolutely clear what the purpose is of this post. Im not saying tether is squeaky clean and not to keep an eye on it. Quite the opposite: Im saying its important that we distinguish what are facts and what is fiction. The motivation for making this post comes simply from reading many many people asking when todays announcements are coming out. For me this screams lack of research. Today will have no announcement and the lawsuit that has a deadline today has nothing to do with tether pumping the price, but simple with the 850 million dollars that went missing.

Reason for tether hype

Okay, so why is this news then and why is it something most people are talking about right now: Well as someone who has been in crypto for many years, I can't help but think that each ATH comes with its fair share of negative news. Im not saying tether is baseless FUD, but i still think the claim that people wish badly on the crypto community and its recent gains does hold water, and therefore there are a lot of people interested in hyping the tether news to either get views on their youtube videos or to simply create uncertainty in the market. I understand that Tether has never been audited, something that I feel is deeply needed as it would also put to bed the many questions I have regarding Tether as I too am sick and tired for the uncertainty surrounding it and the shackles that come with Tether and its negative image.

Final Thoughts

I understand that these next arguments will come with not much support or evidence, however, I can't stop myself from thinking that the billions that have entered into the market from the likes of Paypal, Microstrategy or Greyscale haven't done their research into things like this. Maybe im naive, but I feel that these people have so much power and influence, they would not be risking being the biggest laughing stock on wall street by something as simple as tether, which has come with the accusations I mentioned previously for years and years. My argument also isn't saying that tether is or is not backed by 100%, (even their lawyers have claimed that its only 70% backed by Cash & Cash equivalents, rest by something different) but rather that I personally do not think that tether is this empty pump vehicle that people make it out to be.

For those interested in what im basing any of this info off I have attached some videos that have influenced my opinion on this matter. Again, im not saying im right, these things represent my opinion, and should be used as a basis to start a discussion, rather than the bullshit dick measuring competition I see frequently between FUDsters and believers:

Coin Bureaus video covers almost everything I talked about in a very clear and detailed way:

Some insights from some actual traders that have personally put billions and billions into tether (minute 50)

Looking into some general FUD that has been around for years : (Minute 20)

Just my two cents :)

submitted by /u/hodlonbaby
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