This explains a lot. Instead of passing audit they can never pass because they have nothing backing the token, they helping government to prolong the fraud.
I am going to quote someone from Reddit for future evaluation if he was right: BiccepsBrachiali Partly, mostly the scheme goes like this: 1: Crypto company needs money, can't get real money, goes to Tether 2: A crisp Billion is printed for these cases, Tether loans out the Tethers in exchange for interest and some security, Bitcoin for example. 3: The crypto company can now put those Tethers to work, buy the very security they just deposited on exchanges, pushing the price. Parts of the Tethers are also used for leveraging long positions. 4: The price goes up, Cryptards go apeshit and throw their money in, price goes up even more. 5: The crypto compay cashes out their Bitcoin and pays back their loan. Money flowed from Cryptards to the crypto company and Tether. 6: Cryptards don't sell ever, price of Bitcoin stabilizes after an inital drop. If it drops to hard, no worries just rinse and repeat. This is not even made up, we pretty much learned about this practice from all the insolvencies last year, where the scheme could not keep up with the selling pressure. It's all there in the court filings.
A moron posted it to Reddit and another moron posted it here. The irony of the use of the term 'tard' is obvious.
Another good explanation of the SEC role or why they aren't doing what they are supposed to: youdontimpressanyone The SEC does turn a blind eye, and is picking winners and losers in the "crypto" market. Even the judge in the recent ETF case agreed that there was no substantial difference in their allowing of some but not others, and ordered them to stop playing favorites. That's why the shit-storm of the century is unfolding with this ETF approval. The SEC simply doesn't universally apply the law, let alone adhere to the letter of it. They should have never approved the futures ETF, and now they're stuck by law to adhere to their bias. Had they been remotely honest, exchanges would have been sanctioned from day one for allowing premine coins like ethereum and other security coins, including "stablecoins", which are just dollar denominated notes with an unregistered issuer, which clearly fall under securities laws. In fact, in the NYAG case against Tether, the judge was quick to dismiss Tether's argument that it "wasn't a security" while claiming the NYAG had no jurisdiction. However, the SEC never brought a followup-suit. So instead, within the following year we had coinbase also issuing security tokens (stables) without fear of reprisal. These players make up the majority of the crypto markets. So what did the SEC do instead? They went after "shit-anal-coin-meme-token-no-one-ever-heard-of" to make a big clown-show for TV news of "cracking down on crypto". There's a reason that even congressmen have said that additional laws wouldn't be necessary if this agency would do their job. However, regulatory capture is a real thing: And SEC is not immune. I mean look at the "revolving door" between that agency and the crypto "industry". It's absurd.
I didnt invest in Apple when I had the chance 15 years ago. Just didnt get it,thought it was a fruit company. Only thing that will make me feel better is if it fails. Now I spend my days trawling Reddit,listening to random haters who are in the same boat as me.Regurgitating their drivel as something insightful.
This tether argument is literally the last thread of hope that the BTC haters have left. It's pretty sad. If Tether turns out to be solid and we get a BTC ETF approved, then what's the argument going to be? I know they'll come up with something.
ask yourself a simple question. We have 93 billion of printed tokens and not a single audit in 10 years Does it look shady? Especially when whole crypto market value is based on it. Tether said they hired BDO Italia (very reputable firm) to do audit in August 2022. We are in January 2024 and still waiting for that audit. I think that most of collateral backing USDT is crypto itself, essentially just a house of cards. That is why there will be no audit.
I understand your perspective, but if an audit came through and proved Tether solid, would that change your opinion of Bitcoin and crypto in general?
100%. I never had issue with crypto in fact I like it a lot. I am a tech geek deep Inside The only reason I only own some Ether is due to USDT potential fraud. Otherwise I would have put a lot of my money into crypto. Tether got caught lying about their initial claim that every USDT is backed with USD 1:1, then Bloomberg exposed their fraudulent claims about commercial paper, so I highly doubt they have T bills backing USDT.
Sure I come up with something. How about BTC being a collector's item? Using Coinbase's argument, like a beanie baby? By the way Tether is my most liked crypto (beside Doge), because if I put X dollars into it, I get back (until it collapses) X dollars.