We need to talk about Tether

EDIT:

Coffeezilla has a great take on Tether

https://en.wikipedia.org/wiki/Tether_(cryptocurrency))

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While, according to its 2021 settlement with the New York Attorney General Letitia James, "Tether represents to users that any holder of tethers can redeem them from Tether the company at the rate of one tether for one U.S. dollar",[5]#citenote-agny-5) Tether Limited as of 2017 stated that owners of tethers have no contractual right, other legal claims, or guarantee that tethers will or can be redeemed or exchanged for dollars.[[6]](https://en.wikipedia.org/wiki/Tether(cryptocurrency)#citenote-:1-6) On 30 April 2019, Tether Limited's lawyer claimed that each tether was backed by $0.74 in cash and cash equivalents.[[7]](https://en.wikipedia.org/wiki/Tether(cryptocurrency)#citenote-Bloomberg_0430_2019-7)[[8]](https://en.wikipedia.org/wiki/Tether(cryptocurrency)#citenote-NYCourt_Stuart_Hoegner-8) In May 2021, Tether published a report showing that only 2.9% of Tether was backed by cash, with over 49.6% backed by commercial paper.[[9]](https://en.wikipedia.org/wiki/Tether(cryptocurrency)#citenote-9)[[10]](https://en.wikipedia.org/wiki/Tether(cryptocurrency)#citenote-10)[[11]](https://en.wikipedia.org/wiki/Tether(cryptocurrency)#cite_note-11)

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Thank you to u/vergeingonold

" At the time of writing, the 24-hour trading volume of Tether was US$73 Billion. If this asset was to become “un-pegged” or disappear, the entire crypto market would fall to pieces in instant. That’s not even taking into consideration the fallout associated with the ill-sentiment towards a scam of this magnitude being played out right under the noses of all the world’s investors. "

The fallout of the Terra/Luna/UST/Anchor Ponzi collapse should be a wake up call.

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If we (the entire crypto/financial community) continue to ignore Tether and allow it to grow further, unchecked. The inevitable crash will just be worse.

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When USDT finally implodes it is going to be literal orders of magnitude more devastating than what we just witnessed the last few hours.

I don't know if it is possible for the CEX's to shift away from the USDT currently underpinning their marketplaces - or whether it has to be a painful, brutal band-aid being ripped off as per Luna/UST.

But something needs to be done.

And for those that believe that Tether is a legitimate stable coin that the market should have collective trust in. Fine - then this needs to be publicly proven. If Tether is to continue to be supported as the fundamental currency underpinning crypto-currency transactions/exchanges - then they need to become accountable and transparent.