The Crypto Time-Bomb is Finally About to Explode
By now, it’s more or less an open secret that the good folks at Tether Limited are crooks who have fraudulently pumped the cryptocurrency market in order to enrich themselves and their co-conspirators. If this comes as a surprise to you, or if you’ve heard nothing about it, or if you vehemently disagree, I’m not going to beat a dead horse by explaining it all over again from the beginning, but I would advise you to first read the two articles I’ve already published on the subject (here and here) and/or take a gander at Bitfinex’ed who has been exposing the Tether fraud longer than anyone.
While virtually everyone knows Tether is a fraud, crypto enthusiasts are known to do some serious mental backflips in order to imagine that their investments are safe and sound. A classic crypto fallacy is that history repeats itself precisely; what happened in 2017 is a perfect model to predict what will happen in 2021, and Tether never imploding before means it will never-ever implode in the future. I asked the famed Hieroglyphics rapper “Casual” (whose IG account is full of screenshots of his crypto portfolio) if he was concerned by the Tether situation, and he said, “Nah, people have been talking about that as long as I’ve been in crypto.” His stance is not unique. People have been saying Tether is a fraud for years and nothing has changed— so why should we care? If my number goes up, why should I care what’s causing it to go up?
Well, it seems like we are finally approaching the end of Tether and, with it, the end of the lawless childhood of cryptocurrency in general. A lot has happened since I last wrote about crypto, and all of it suggests that things are on the verge of going south very quickly. Regulation, criminal investigations, tightening nooses — oh my!
1.Wall Street reacted with surprise that Tether supposedly had $30 billion of commercial paper in reserve, making it the 7th largest holder of commercial paper in the world. If they are a top ten holder of commercial paper globally — how has no one in the commercial paper market ever traded with them? (Answer here)
2. After months of printing aggressively, Tether ceased printing their unbacked Tethers on June 11th, dashing any hopes that the market might…