That's how crazy cryptospace is..
So let's take things from the start. There is one academic paper written by a graduate student under the supervision of his professor. We all know what that means. Hungry for drama media take up the article and post it (NY times). Regardless of whether it's true or false, one could use this as a major manipulation. If you know this article is being printed and you know how the immature market overreacts it's prime shorting time. What an irony when posting an article about manipulator…you are the manipulator.
In any case, there was another article here http://forklog.net/so-have-we-got-tethered/ that finds absolutely no correlation with prices increases. Why should I believe a graduate student vs someone else that conducted statistical analysis? Well, we collectively panicked on one article and totally dismissed the other one.
Why? Economic theory always suggests that negative news have more power than positive ones as we have seen during the last months, we have a super influx of positive news to which the market does not react.
Still, my thoughts about Tether are summed up from this series of Tweets from someone I respect:https://twitter.com/matt_odell/status/1006885981797208064
He has a nice wording but I also need to add a couple of things I keep repeating.
- ALL of the exchanges that use Tether do not seem to be worried. Either they are STUPID or they are convinced that there is no immediate threat from Tether. Conspiracy zionists will say that they are all in this together. Well I'm not a flat earther on this one.
- Can you think of one promiment crypto famous person that publicly said he is worried about Tether? I am not talking about Twitter OGs I am talking about Binance CEO for example who seems completely confident Tether is not a scam since he offered insurance in case something happens or other exchange CEOs etc? NONE
- Tether on purpose does not want to get public with the bank accounts since many governments may start picking on them. It serves a very convenient purpose to the ecosystem.
- Tether guys have a big vested interest in Bitcoin not failing, they are already gazzillionaires and have no reason to scam. If you have hundreds of millions already, would you run a scam to get some more threatening imprisonment? I wouldn't.
- Tether has a confirmed bank account with the biggest Dutch bank. Do you think one of the most scrutinizing banks under EU legislation would host billions of a scam scheme?
- Few understand that you need to increase and decrease the supply of a pegged asset. They just mindlessly repeat "tether printer" like an army of tools without understanding what is it's purpose while it is described in their technical documentation.
- We have more stable coins now in case I am wrong. Can you just chill?
p.s I don't work for Tether, I am not a paid shill etc etc. I am just trying to put my 2 cents to make this market more efficient (because I am a long term investor that profits from rationality vs day traders that profit from madness). So no, this post is not completely altruistic obviously.