Quote:
Originally Posted by case3
Tether bail out logic:
850m hole in reserves means large holders cannot all cash out
BFX in trouble with AG means they want to clean things up
Current USDT holders basically have an IOU backed by BFX recovering funds. New LEO token gives them this exact same thing *plus* another liquid market to dump into, along with an equity slice that could possibly cover them if funds are not recovered
Anyone with large USDT exposure (whales, alt exchanges) really has no choice but to go along here. This also protects the market which is aligned strongly with their interests anyway. If it was all just tiny fish with a few hundred K each then a rush to the exits makes more sense.
Everyone has a large USDT exposure tho.
Tether is so deeply involved in the majority of trading that if it went fantastically tits up tomorrow, the price would collapse. There are tons of people with a massive financial interest in keeping the game going for as long as possible.
Take a step back and try to wrap your head around the idea that since April, at a time when the entire Tether mess appears to be imploding, the USAG is knocking at the door, and even they are having to admit they didn't have 1:1 backing...they've printed $1B new tethers and their
market cap has never been higher!?
The real question here (for those who have BTC) is "how much money has truly been skimmed/scammed/embezzled out of the ecosystem?" Because it seems like the most likely ending here is that this goes on for a bit, and then those inside Bitfinex/Binance/wherever finally dump on the bagholders.
They'll move first, so they'll get theirs, but depending on how much cash is gone (it doesn't take a huge leap to think that if Tether is finally just now admitting they're only backed at 74% after swearing up and down it was 100% for so long, it's probably actually less), the bagholders are going to find when it's their turn for the bank run, the safe is empty.