The burning of tethers should be natural, that is how the system supposed to work. What has been unnatural is that for years, they almost never burnt any. Now suddenly 7% of the supply is gone.
Tether USDT is the one I prefer to hold out of all the stablecoins. I usually hold more USDT than USDC It has the best liquidity It's accepted in most web3 platforms (i.e. defi yield farming or dex trading platforms) It's on most if not all the major L1 blockchains It's on most if not all the major centralized exchanges I get the most value as close to $1 as any stablecoin, i.e. less slippage on trades (see first item) People who do not use cryptos would not understand all of these
If someone wants to read the auditing report as of March 31st: https://assets.ctfassets.net/vyse88...nsolidated_Reserves_Report_2022-03-31__3_.pdf Auditing it is what it is (remember about Arthur Andersen and Enron...) and besides it's a Cayman auditing company.
That’s not an audit. A supposed $75 billion in reserves and can’t secure an audit even from a two-bit accounting firm. Tick, tick, tick, tick, tick….
I will save it here for prosperity, pretty long read: https://www.kalzumeus.com/2022/05/20/tether-required-recapitalization/ "As an example of an asset which is certainly impaired: Tether has invested $62.8 million of the reserves into Celsius Network, including $52.8 million into their Series B of October 2021. (I am indebted to Intel Jakal for some legwork here.) Celsius is in free-fall due to the current market dislocation; the value of their native token is down by over 86% since their Series B. Clearly, that investment has suffered more than $20 million in impairment. Impairment of 1% of one line item on their balance sheet ate more than 10% of their equity, under assumptions which are extremely generous to Tether."
I think it's entirely possible the Tether company stole $30 Billion but no one may never know Unlike banks who leverage the deposits 30 to 1 every USD deposit, Tether only issues 1 USDT per 1 USD deposit (and burns an equal amount in reverse per redemption) Most of the USDT are not in redeemable form. They're in local wallets and DeFi Web3 platforms (i.e. liquidity pools, staking for yields, etc)
Thanks for posting. I have been thinking that $12-16K would be a target for BTC. The big, risky bets by Michael Saylor (MSTR) and El Salvador need to be challenged -- it's almost like a law of the markets that stupid, risky behavior will eventually be punished. Had a good friend who lost a lot in Luna which made me take a look at Tether more closely. At a minimum, it's a big risk that's out there -- even if just the regulatory risk. Given that all the major cryptos are in serious downtrends, I'm a spectator in this space right now. I'm not anti-crypto but I'm also not a true believer. Heck, if Tulips were in a defined uptrend, I would be a buyer but this isn't the time to just stick your head in the sand and say "HODL." Ever notice that whenever someone is critical or skeptical of crypto the typical response is "You just don't get crypto." Financial stress in the system always exposes the darkness so we'll see what other things get exposed here this year. By the way, I like @johnarb. I think he's a decent guy. I give him some props for getting into some crypto and NFTs before everyone else. Where I disagree with him is that I believe these are just vehicles of speculation, nothing more, and that it's quite possible all of his holdings have already hit their all-time peak. Only time will tell. Finally, I encourage everyone to read "The Zurich Axioms" -- it's one of the best books on the mindset of market speculation out there. Should be an interesting year.