wrong it is only a question of when it blowsup. They are a world biggest financial fraud. The later it happens the more damage it will create.
As I have stated before, how is Tether different from your local bank, whether it is a small regional or a major national name? This is nothing new. Tether's & Bitfinex's history is not a secret, their founders are sketchy characters (at best) Until Circle/USDC can provide an alternate infrastructure for capital flow (which they are working on), Tether is safe. However, Circle has the same issues, they dont actually have the 1:1 USD backing. But prob better capitalized.
Why are you so sure they don’t have the backing (tether). I am not saying for the record that I am sure they do or anything. I am just wondering if you have any evidence
Why, in god's name... would a company that could easily meet an audit, be so hell-bent on doing everything possible to block/avoid/fire auditors? To what purpose?
It's about as safe as your local bank branch. Or the crypto market in general. It's all relative. Do you drive? Or take Uber/Lyft/Taxis? Pretty risky if you look at the stats
History shows, all it takes is that one spark... that one institution for example, that realizes they can't carry out a large redemption (because the liquidity/cash/reserves) are not there. Then POOF... the run-on-Tether happens. It took sub-prime many years to bubble to that point... and Tether's been bubbling at least that same amount of time (even more). This is not going to end well. What is different, is sub-prime risk was well hidden from the public (except those who created/sold it, and wisely shorted against their own shitty product). But here, everyone knows it's fraudulent, and yet for some reason still carry on trading/investing in it. I just have no words...
That is true and that the cost of the massive upside in the crypto markets. At the same time, the big players have a heavy incentive in keep Tether stable. You might as well consider Bitfinex & gang as the FDIC for USDT. Also, FDIC can't cover most of the banks simultaneously, they dont have the funds. So what you are basically saying is that it's ok that every bank is insolvent by design because good old government. Everybody plays along because a massive run on the bank scenario is mutually assured destruction. It is the same thing with Tether.