Short Sellers Bet Tether, Crypto’s Central Bank, Is Vulnerable to a Run(wsj.com)
wsj.com
Short Sellers Bet Tether, Crypto’s Central Bank, Is Vulnerable to a Run
https://www.wsj.com/articles/short-sellers-bet-tether-cryptos-central-bank-is-vulnerable-to-a-run-11648978202
2 comments
How is it supposed to fall?
The biggest crypto exchange with the largest trading volume works to keep the price fixed. If they need more funds to do so, they just mint more Tethers. Basically, they own this game.
Betting against them is like betting that Disney will run out of animation --- only worse because Tethers are easier to create.
The biggest crypto exchange with the largest trading volume works to keep the price fixed. If they need more funds to do so, they just mint more Tethers. Basically, they own this game.
Betting against them is like betting that Disney will run out of animation --- only worse because Tethers are easier to create.
> How is it supposed to fall?
A government pushes to audit their books.
A government pushes to audit their books.
It hasn't happened yet. With so many people already vested in it, it is certainly late --- but I suppose the thinking is better late than never.
We can and should imagine a bank holiday is possible where you cannot spend or withdraw from a bank. This is the possible scenario with Tether, the tether token contract can be locked for any address, this includes exchanges. An asset that is illiquid, may function as a line item in a ledger, and if it cannot be traded or moved the market will vanish. The chaos this would cause would be devastating.