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Yo guys, XanPharaoh here.
Just here to let you guys know that this is the first part of a series called 'HOLDING TETHER IS A BAD IDEA'.
So I was just feeling really suspicious of Tether, I was just thinking that there is no way that a crypto project created in 2014 can turn out to be such a whopping success by simply matching the number of tethers with the number of dollars in the reserve. It seemed way too sus for my liking, so I went digging.
It started with a simple Google search and ended with me feeling like I was going down an endless rabbit hole. The deeper I went the more I realized that something wasn't right with the project and its founders. So this is what I found out.
trust Tether (I am people). Apparently, they have been using the printers like crazy, minting more coins than they know what to do with. it has also been proved that the coin is not backed by USD. They are on such a printing spree that about 4 months ago, if you looked at at the chart then you would find that every 4 days the value of USDT would climb $1 BILLION, no need to clean your lenses, you read correctly.
Tether is the pioneer of stablecoins. It is the first of its kind and is a massive contributor to market liquidity. Should Tether crash overnight, you can expect nothing short of a s#it storm. I don't just mean for Tether holders, but for the entire crypto market. Tether is a big boi in these streets. As a matter of fact, USDT is the largest cryptocurrency if we are looking at trade volume, BTC who?
I just want to say that upon digging I was amazed at what I was able to find. USDT is a disaster waiting to happen, and the longer it takes for regulators to check it, the larger the disaster is becoming.
As Tether started out, it was known for being backed 1:1 with USD. That is what boosted the currency to fame, right? What was supposed to happen is that you would give the exchange a dollar and in return they would give you a tether. when you wanted your fiat back, you would take USDT back to the exchange and they would return your USD and burn the exchanged tether, so that they can match the number or USD with the number of USDT. Simple right?
BOY WAS I WRONG!
If you look at Tether's Terms of Service you will find that Tether actually doesn't have to redeem anything if they don't want to. If you think I'm lying take a look at Article 3 of the Terms of Service.
I'd love to say that this is all that is wrong with the currency but unfortunately, this barely scrapes the surface.
If you are eager to hear what else I have found when researching Tether, stay tuned for Part II which I am busy editing now.
If you liked the first part of the series, drop a like, it'll let me know if I have to do more of this.
I appreciate all the support.
Looking forward to seeing what you guys think about the Part I of the series.
Stay easy
Disclaimer: This is only my opinion, I am no financial expert. Just sharing some information.
