Dear Friends,
lately, the crypto world has been puzzled by the mystery of Tether and Bitfinex. On Steemit you can find hundreds of posts speaking about it, and accusing both the crypto and the exchange of being nothing more of a bunch of scams.
For sure there are many factors that do not help public trust. We can show you a couple :
a) Sudden improbable movement
Tether the last week walked on a sort of erratic path
It seems quite improbable that there was a single withdraw for 240 million dollars an then a payment to the bank of almost the same amount in the same ay. So or Coinmarketcap, that gave us this data, is not reliable, or something strange is happening,
The situation is even worse if we consider the last month:
This chart shows a single 650 million dollar payment, and, seriously, it seems very improbable, in the real world. Such cash movements are able to make bell ringing in any Central Bank of the world and it is only slightly lower of T2 negative balance of Italy toward Germany inside ECB. You can't move such amounts of money without leaving a trail of traces.
This chart shows a single 650 million dollar payment, and, seriously, it seems very improbable, in the real world. Such cash movements are able to make bell ringing in any Central Bank of the world and it is only slightly lower of T2 negative balance of Italy toward Germany inside ECB. You can't move such amounts of money without leaving a trail of traces.
IMHO , and having a positive vision of this mess, Tether is to be considered as a sort of commitment, or debt, of an exchange to pay this money to the Tether system, but I have serious doubt that there is a bank account with 2.,4 billion dollars registered. I read that these deposits should be granted, in some way, by bitcoins owned by various exchange, but I find it someways silly ad Bitcoin, or Euro for EurT, are not the same of bitcoin and they have a completely different volatility. Granting a fiat currency deposit with a bitcoin one is really risky and odd.
Now the heavy questions: How can Tether solve this problem before the subpoena duces tecum in front of CFTC? They have 2 ways:
a) Paying really 2,5 billion dollars to a bank, if there is any bank available tow to receive them ;
b) Confessing the truth, that Tether is not backed by dollar, but by cryptocurrencies.
What can be done for the future? There is for sure space for a new Tether, if it is created with transparency: there should be a net division between real money in bank accounts, and debts or commitments to pay from exchanges. This could be done with token related to the exchange commitments which self-cancel if the debt is not paid, or renewed on reliable base. This kind of token was not possible when the journey of Tether started but can be realized now.
Thank You and please UPVOTE !
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