If a wallet has 10,000 Eth, 10,000 Dai, and 10,000 USDT, are you saying Tether can freeze the wallet and prevent transactions of 1000 Eth to Uniswap? 10,000 Dai to AAVE? Did you understand my response or are you trying to confuse and fud others on ET?
more specifically, I meant stablecoins can freeze the address associated with the token and transaction history. A wallet is just a ui or command line utility interacting with the address. In your case, the wallet is interacting with 3 addresses under the hood and tether can freeze the USDT address.
as I said on my very first reply, stablecoins (issuers) do not have the ability to freeze wallets that may contain 100 different crypto assets, such as Eth, Dai, Aave, Sol, Trump, Pepe, etc Saying "freeze the wallet" is fud for the uninitiated As the recent ByBit hack has illustrated...
I assume 2rose means that BitFinex can freeze USDT in a wallet. Obviously they do not control other crypto. to others, most of crypto wash trading and pumping is done by tethers. Remove them and house of cards collapses. Not sure why it’s so hard to understand. BTC market cap is total fake. We have no clue what BTC real value is due to fake money aka tethers. apart from crypto, any other asset on face of the planet is traded in fiat and we know the real price.
how does a 140 billion dollar asset (Tether) cause a "totally fake" market cap for a 1.8 trillion dollar asset (bitcoin)?
have some RosyBucks. now on SUI. I won't freeze them. I promise. https://suiscan.xyz/testnet/object/...30a9c79c4afeb72898128110c1b75a5d370/tx-blocks
So what matters is not the market cap but ambient volume. Officially, daily volume across cash and perps is something like 200-250bn, I recon real volume is about a fifth of that (40-50 bn). Let’s assume Tether is going to sell their holdings across 4 days, making it about one percent of ADV. Assuming bitcoin volatility of 5% per day, we would have a decline of 5% * sqrt(0.01) =0.005 which is about two percent in total. That’s the lower bound of the impact. Of course , main impact will come from just general loss of confidence, not selling pressure from their holdings I think realistically if Tether goes, we gonna have a mild version of seven Egyptian plagues in crypto.