Tether makes 1.4BB in Q1, 2.4BB excess reserves, financial attestation from BDO

[NoahA]

Fraud deepens, imagine carnage if it ever blows up.

I have two comments.

First, it is true that holding Tether is a risk, just as is holding Bitcoin. But bitcoin will double and triple easily, so you're getting paid to take the risk, but the best USDT will ever do is stay flat. Now granted, its probably better than the shit currencies of all these countries (not to say that USD isn't a shit currency mind you), but still, the risk is there. Obviously its better to hold USDT than currencies of Argentina or Venezuela since its pegged to USD, but there is the risk of holding USD in a synthetic form.

And second, from my years of watching the markets, I have only seen things blow up because of some catalyst. Madoff blew up because of the 2008 crisis and people wanting to withdraw from the fund. Banks blew up this year with a flurry of withdrawals as well. Crypto companies blew up in 2022 because of a price drop and also withdrawals. So it seems like for Tether to blow up, we need a major event. But unless there is a huge equity market crash, I just don't think there is another blowup in the crypto space. If anything, more blowups with banks and such. If tether has survived until now, what else will take them down? Now that they are adding bitcoin to their balance sheet, when it doubles lets say, they will have a nice bump in assets against their liabilities. They are also making nice profits now I'm sure from the high interest rate environment.

So my point is that the event which would expose their weakness and be the catalyst for their demise is probably past. The phrase "fake it till you make it" comes to mind. They probably were faking it, but now that their assets are growing in size while liabilities are constant, the chance of a collapse is slipping away. Even if we are to believe that the 80B of issues tokens was only backed up by 40B in assets, or whatever that value is, the day may come when they are now truly fully backed with a huge cushion. More and more people will be running to USDT at a time when their investments are also growing, so where is the weakness going to come from that will expose whatever is ugly on their balance sheet?

 

[The_Krakenite]

So it seems like for Tether to blow up, we need a major event.

That may be true, and something I have been thinking on for some time. However, the LONGER Tether is around, the higher chance the blow-out will occur. Also, the larger Tether becomes, the more destruction will occur.

I remember Saylor getting very annoyed that those players in the alt-coin environment were responsible for the collapse and contagion that went around. He likes to refer to them as 'Air-Tokens', lol!

One reason for the annoyance is that they did cause a very real chance of a margin call on his BTC holdings. However, this fear was more exaggerated than it need be.

I can not help but notice that the later earnings calls have shown a drastic switch to getting most of MSTR's Bitcoin switched to unencumbered status. They've done a lot to also prop up what little Bitcoin they have that is encumbered as well.

Not surprising to see the stock very bullish again that the margin-call fears are going away. But since markets are a second-order system, I also think people are also just buying because of all the Bitcoin conferences and other crypto events going around all over Florida right now, etc.

 

[Ed48]

Waiting for Tether to collapse is a bit like waiting for USD to collapse.

You could be waiting a long time...

 

[RedDuke]

I have two comments.

First, it is true that holding Tether is a risk, just as is holding Bitcoin. But bitcoin will double and triple easily, so you're getting paid to take the risk, but the best USDT will ever do is stay flat. Now granted, its probably better than the shit currencies of all these countries (not to say that USD isn't a shit currency mind you), but still, the risk is there. Obviously its better to hold USDT than currencies of Argentina or Venezuela since its pegged to USD, but there is the risk of holding USD in a synthetic form.

And second, from my years of watching the markets, I have only seen things blow up because of some catalyst. Madoff blew up because of the 2008 crisis and people wanting to withdraw from the fund. Banks blew up this year with a flurry of withdrawals as well. Crypto companies blew up in 2022 because of a price drop and also withdrawals. So it seems like for Tether to blow up, we need a major event. But unless there is a huge equity market crash, I just don't think there is another blowup in the crypto space. If anything, more blowups with banks and such. If tether has survived until now, what else will take them down? Now that they are adding bitcoin to their balance sheet, when it doubles lets say, they will have a nice bump in assets against their liabilities. They are also making nice profits now I'm sure from the high interest rate environment.

So my point is that the event which would expose their weakness and be the catalyst for their demise is probably past. The phrase "fake it till you make it" comes to mind. They probably were faking it, but now that their assets are growing in size while liabilities are constant, the chance of a collapse is slipping away. Even if we are to believe that the 80B of issues tokens was only backed up by 40B in assets, or whatever that value is, the day may come when they are now truly fully backed with a huge cushion. More and more people will be running to USDT at a time when their investments are also growing, so where is the weakness going to come from that will expose whatever is ugly on their balance sheet?

tether is a tiny shop of very few
Employees, this is nuts comparing to their size of 80 billion. Few arrests and it is all gone. And to compare USD to tether is beyond funny.

 

[johnarb]

tether is a tiny shop of very few
Employees, this is nuts comparing to their size of 80 billion. Few arrests and it is all gone. And to compare USD to tether is beyond funny.

Why would Tether people get arrested? Tether has not lost a single $ of customer funds and they make more profits than Blackrock

Tether is buying bitcoins using their own profits. No one is forcing them to buy bitcoins, they can just spend the profits on lambos

I remember a few months ago, hedge funds were shorting USDT and coinbase and bankster friends were spreading so much fud and attacked Tether by having $20 Billion of redemption within a week and Tether had no problems

All the Tether haterz were celebrating that Tether was down to 60 Billion on the way to 0

Where are the celebrations now?

USDC dying...

USDT all time high

Prolly nothing

 

[RedDuke]

Why would Tether people get arrested? Tether has not lost a single $ of customer funds and they make more profits than Blackrock

Tether is buying bitcoins using their own profits. No one is forcing them to buy bitcoins, they can just spend the profits on lambos

I remember a few months ago, hedge funds were shorting USDT and coinbase and bankster friends were spreading so much fud and attacked Tether by having $20 Billion of redemption within a week and Tether had no problems

All the Tether haterz were celebrating that Tether was down to 60 Billion on the way to 0

Where are the celebrations now?

USDC dying...

USDT all time high

Prolly nothing

View attachment 315390

because they are fraud that prints USDT out of thin air. Had they not been a fraud, we would have seen an audit. They had 10 years to produce it. It has been almost a year since they announced BDO Italia as their auditor and still no audit. Bernie Madoff customer were also “making” money for 20 years until it blew up.

here is my prediction. If Tether produces BDO audit this year, then no other questions or doubts, they are legit. If not, the eventual collapse will be so epic that non of us could even imagine.

they are competing with governments by issuing currency after all.

 

[The_Krakenite]

Why would Tether people get arrested?

Similar reasons to why Sam Bankman, or anyone else lying in financial business to the public would.

USDC dying...

USDT all time high

USDC dying is more bad news for Coinbase and another nail in their coffin. But USDT at an all time hight is bad news for everyone else but the fraudsters behind it.

As I said with Luna & Titan Finance:

This will not end well.

 

[GlobalMacro90]

because they are fraud that prints USDT out of thin air. Had they not been a fraud, we would have seen an audit. They had 10 years to produce it. It has been almost a year since they announced BDO Italia as their auditor and still no audit. Bernie Madoff customer were also “making” money for 20 years until it blew up.

here is my prediction. If Tether produces BDO audit this year, then no other questions or doubts, they are legit. If not, the eventual collapse will be so epic that non of us could even imagine.

they are competing with governments by issuing currency after all.

I don’t understand the thought that they print tethers out of thin air? You send in US dollars, they invest said US dollars and give you an equivalent amount of USDT. Why is this so hard to understand?

Now is it possible that their investments of said US dollars was in shady stuff that could’ve lost value and put Tether at risk? Of course that is possible but it still doesn’t mean that they print usdt out of thin air.

 

[The_Krakenite]

If you remember (well maybe you don't because you may be new to crypto), is Tether did a Ninja-edit on their documentation.

It used to be Tether was SUPPOSED to be backed fully by $.

Well surprise, surprise, that was secretly changed to a non-explained mixture of crypto-currencies.

No details given.

So that essentially means,... well it may be all FTX tokens and other useless shit-coin tokens... who knows.

They fired their first auditor before the examination was to be made public. Then surprise, surprise... all audits tend to.... go missing or fail to show up.

Investigations have shown that not one single person can vouch for Tether even purchasing anywhere near the commercial paper volume as the organization claims.

Hmmm....

Everyone who uses Tether 100% deserves to get burned. This is even more obvious that Madoff.

 

[GlobalMacro90]

So you think their stated asset mix that was linked to in the first post of this thread is fake?