Popular trading veteran and chart analyst Peter Brandt has upped his criticism of the stablecoin Tether by calling USDT “an accident waiting to happen.”
In a tweet, Brandt referred to Tether as “another fiat currency” and predicted the stablecoin would eventually result in a collapse for the crypto market.
Tether is an accident waiting to happen. Tether is just another fiat currency.
— Peter Brandt (@PeterLBrandt) August 11, 2020
Brandt’s tweet was in response to a chart published by popular crypto Twitter user Silver Watchdog which compared the rise in Tether’s market capitalization to total crypto volume. Silver Watchdog warned that the surge in USDT’s circulating supply would eventually result in a collapse.
Brandt has previously been vocal about his critique of Tether and the underlying value of the stablecoin. In April, the veteran trader said holding Tether was about “as safe as holding the Nigerian Trinket.”
He also called investors who stored their wealth in USDT fools, even for a short duration, and pointed out the irony of crypto supporters bashing fiat while supporting stablecoins.
Tether. Now that is an interesting story. Holding tether is about as safe as holding the Nigerian Trinket. I think people are fools for holding wealth — even overnight — in tether. It is a joke when ppl condemn USD as fiat, yet hold tether.
— Peter Brandt (@PeterLBrandt) April 29, 2020
Brandt also reminded crypto traders that exchanging crypto for USDT was not an avenue for escaping taxes, making the process even more similar to that of fiat.
Point of clarification for U.S. citizens. Selling BTC or other cryptos for tether does NOT let you escape the IRS. The trigger to the IRS is the amt of cryptos sold/traded. Once you hit that level (AND THAT LEVEL WILL BE DOWN TO $1k within years) you will be reported by exchange
— Peter Brandt (@PeterLBrandt) April 29, 2020
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