Has Tether exhausted all of its cash on hand and is now forced to sell raw Bitcoin (its ‘cash equivalents’) for every redemption? Sounds like a wild accusation, but today’s $500 million Tether redemption perfectly lined up with that gigantic market dump o

We have known for a while that Tether isn’t 100% backed by cash, but I think crypto faithful wanted them to be at least somewhat legit. Because, cmon - they weren’t really just printing tethers out of nowhere and buying raw bitcoin with them… were they?

Also we’ve known that Tether has been slowly being redeemed by whales - if you want to liquidate at least $100k the company will honor your request. Over the past few months over 20 billion Tether has had exactly that happen to it.

Just how much raw cash on hand does Tether have, anyway?

Then tonight something wild happened - yet another $500 million redemption, coinciding with a Bitcoin giga-dump.

https://imgur.com/a/SZQB1z2

Wait, are you kidding me though? Think about what that would mean if true - it would mean that the remaining SIXTY FUCKING BILLION DOLLARS of Tether’s marketcap is entirely fraudulent because it’s based on Bitcoin at a price of $60,000 each + god knows what else.

It might just be a coincidence but let’s please keep our eyes on the timing of those Tether redemptions alongside any crypto market dumps. Because if that ends up being true it’ll be Enron all over again and crypto will briefly crash to zero as the entire scam unwinds.

Or maybe I’m some idiot speculator online who wants cheapies, and I’m totally wrong. Make up your own mind.