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RE: Why Tether’s latest statement about its auditor is complete BS

in #bitcoin7 years ago

The BIG BIG HUGE question arrises:
Why is there no bankrun on Tether?
Why is nobody leaving that sinking ship?
People could transfer their Tether to Kraken and change it to real US$, right?

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there's no bank run bc you can't cash out to USD except on Kraken

and in order to do that on Kraken, you must comply with stringent AML/KYC requirements - which is what people sought to avoid by using USDT in the first place.

and, selling USDT for USD on Kraken is only possible to the extent that people are willing to pay $1 USD for $1 USDT ... which is a sweeping, unrealistic assumption (especially if Tether themselves won't buy them or even have the cash to do so)