The problem is they are producing more USDT to buy investors BTC. USDT on the other hand has no value at all.
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The problem is they are producing more USDT to buy investors BTC. USDT on the other hand has no value at all.
tether are supposed to be backed by USD. if not that would be fraud. The fact that new tether are created should never be an issue unless they are not backed. However is there proof that they are backed or not backed?
I find the notion that this bubble is driven by tether a little far fetched. Most of the volume is not in tether, but certainly printing tether without reserve would be manipulation.
To make the accusation you are making one would have to prove that the reserve is not there. Can you do that?
PURCHASE AND REDEMPTION OF TETHERS: The Site is an environment for the purchase and redemption of Tethers. Once you have Tethers, you can trade them, keep them, or use them to pay persons that will accept your Tethers. However, Tethers are not money and are not monetary instruments. They are also not stored value or currency.
It clearly states that it doesn't hold a value. That's from their terms and agreement BTW.
yes i understand. that does not mean they dont hold reserves or this is fraud. also does not state they can print out of thin air.
proof would be an audit of USD reserves that is less than market cap.