Tether is responsible for the MAJORITY of crypto trading volume. This means you will NOT BE SAFE from Tether collapse/fraud uncovering even if you don’t hold any.
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Tether is responsible for the majority of crypto trading volume.
Over the past 24 hours Tether had a trading volume of U$ 79,942,874,644 dollars. Bitcoin had U$ 34,764,002,915 dollars traded, and ETH had U$ 19,402,373,410 dollars.
That means Tether trading volume corresponds to 1.5 times that of Bitcoin and Ethereum. Added together. There are also days (like yesterday) where it’s closer to 2 times.
If you think you’ll dodge a Tether crash by “nOt HoLDinG UsdT” you’re so very mistaken, because a Tether collapse would mean much less market action, and that would make prices less stable (probably on the downside, since a big fraud would be uncovered).
Tether also claimed they hold cryptoassets on their reserves that back USDT. This means that:
Client gives Tether 10 USD, gets 10 USDT Client uses 10 USDT to buy $10 of Bitcoin Tether uses the USD to buy $10 of Bitcoin to back the USDT they gave the client. Essentially every USD is used to buy Bitcoin twice, meaning there’s leverage and the Bitcoin float price is probably, at least, twice what it should be.
PS: For the bullet point analogy right above I’m considering Tether holdsonly Bitcoin as their reserve asset of choice to back USDT. In the past they claimed to have a portion of USD, a portion in Crypto and a few other assets, but from what I remember on their pizza chart Cryptoassets were over half of their reserves.
In case of a collapse/fraud uncovering the market will dry up and prices will correct on the downside as people realize they were artificially inflated by a fraudulent company.
submitted by /u/Harucifer
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