Tether is a massive scam / Ponzi scheme that will collapse the entire crypto market
Hey guys,
Just saw this video from Youtuber Coffeezilla:
Basically, it unveils the massive scam that is Tether (USDT), the #1 stablecoin with a market cap of 60bn+ USD. Tether is a massive scam that will collapse the entire crypto market, since they are literally printing money out of thin air:
- Tether has lead people on to believe their currency was backed with 100% cash
- Less than 3% of USDT is backed with cash equivalents, and 50% is backed with "commercial paper" which is bullshit, unsecured loans
- More or less all of the key executives have a track record of running different types of scams / Ponzi schemes
- Tether refuse to be audited (fired their audit firm for being "too thorough") and are based in the Bahamas
Stories of their criminal activity are gaining some traction and personally, I don't see Tether being able to keep doing this for much longer. They were fined millions of dollars for lying about keeping their USDT's pegged to dollar reserves. Just the other day there was an interesting article from the Financial Times questioning the legitimacy of Tether:
https://www.ft.com/content/4da3060c-8e1a-439f-a1d7-a6a4688ad6ca
What do you guys think? If this was a non-crypto company, they would be out of business. The crypto scene feels, in my opinion, incredibly inflated by manipulative scammers, LA-Youtubers, and some tech billionaires. How can so many people trust so many obvious crypto scams?
I mean this isn't breaking news. This has been out for 3 months+. Crypto will always be risky. Don't invest anything youre not willing to lose. The upside potential is incredible but there are no fundamentals so invest w/ a plan.
Im not saying Tether will crash the crypto market but it has too much negative press/stories to make me feel comfortable holding it. Would rather hold the cash or DAI if I really needed a stable coin.
Of course, I do agree with you! But I just find it weird, the news has been out for a few months (and red flags for years) and no one seems to care? USDT market cap has just kept on skyrocketing this year no matter the obviousness of the illegality... I guess it's just the crypto bull mentality / roaring 20's effect
People don't do their due diligence sometimes. I'm more convinced money is stored in tether as the markets have been volatile. I don't think people realize the lack of $$ behind the stable coin but since holders are not storing their cash in these long term it doesn't scare them as someone who would be a long term investor/holder. I think the coin will survive through everything but if (and this is a big if) cryptos one day get regulated by the US and crash, losing all their value Tether will be exposed and many will be burned.
Only my 2 cents tho. No one knows what will happen but people should just be diligent with what they do and be prepared to lose it all when it comes to crypto. Hopefully anything I said above does not come true as many retail investors will lose so much. Reminds me of the housing crisis of 2008, just in a more digital world.
If you’re concerned about being backed by commercial paper, you probably bury your savings in the backyard instead of a bank.
Well, sure, but it is just obvious that Tether keeps moving the goalposts. Why not release the names in their CP holdings if they're legit
Chinese commercial paper -- a bit a reason to be concerned.
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