The Crypto Time-Bomb is Finally About to Explode

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      eridani
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      https://theodoregreenbaum.medium.com/the-crypto-time-bomb-is-finally-about-to-explode-d7d825cb9cea

      By now, it’s more or less an open secret that the good folks at Tether Limited are crooks who have fraudulently pumped the cryptocurrency market in order to enrich themselves and their co-conspirators. If this comes as a surprise to you, or if you’ve heard nothing about it, or if you vehemently disagree, I’m not going to beat a dead horse by explaining it all over again from the beginning, but I would advise you to first read the two articles I’ve already published on the subject (here and here) and/or take a gander at who has been exposing the Tether fraud longer than anyone.

      While virtually everyone knows Tether is a fraud, crypto enthusiasts are known to do some serious mental backflips in order to imagine that their investments are safe and sound. A classic crypto fallacy is that history repeats itself precisely; what happened in 2017 is a perfect model to predict what will happen in 2021, and Tether never imploding before means it will never-ever implode in the future. I asked the famed Hieroglyphics rapper “Casual” (whose IG account is full of screenshots of his crypto portfolio) if he was concerned by the Tether situation, and he said, “Nah, people have been talking about that as long as I’ve been in crypto.” His stance is not unique. People have been saying Tether is a fraud for years and nothing has changed— so why should we care? If my number goes up, why should I care what’s causing it to go up?

      Tether has fraudulently printed $62 billion of ostensibly dollar-backed tokens that were never actually backed by dollars. They loan these tokens to cryptocurrency exchanges. On receiving these massive loans of Tether, the exchanges give Tether Limited an IOU. Tether Limited claims that commercial paper is backing USDT, but they are deliberately evasive about how they acquired it and what companies have financial obligations to them. If their commercial paper consists of the IOU’s being given by the crypto exchanges, then it is worthless as a backing to USDT, since those exchanges have no significant USD liquidity to underwrite the enormous USDT liquidity. The fact that no one on Wall Street has traded commercial paper with Tether Limited lends more credence to this concern, and if financial regulators are about to investigate the basis of Tether’s commercial paper, then the scam is primed to blow wide open in the near future. Whether the commercial paper is coming from crypto exchanges (as I believe) or from Chinese companies (as others have suggested), an investigation into the source may spell curtains for Tether and the entire crypto market.

      Tether’s long-time compatriot Binance, which is the financial leader of the crypto space, is also seemingly on the verge of collapse. They are being banned by an increasing number of countries, they are being investigated for financial crimes, and their corporate infrastructure is being gradually exposed as a lot of smoke and mirrors. When Binance goes — and they might go soon — crypto prices will plunge along with them.

      Jesus: Hey, Dad? God: Yes, Son? Jesus: Western civilization followed me home. Can I keep it? God: Certainly not! And put it down this minute--you don't know where it's been! Tom Robbins in Another Roadside Attraction

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