Will Tether Untether from its Peg?

I have long-assumed that, at some point, the Tether alleged-stablecoin will implode. Their pathetic attempts at proof-of-reserves have always been laughable, but being based in the British Virgin Islands (and Hong Kong) keeps the US SEC at a distance, for the most part.

Funnily, the relationship between the Tether and Bitfinex companies is not altogether dissimilar to that between FTX and Alameda. That may not be accidental, as the FTX implosion is certain to accelerate coming regulations.

I had thought that a collapse of USDT would be a suprnove followed by a black hole; not just that it is now the third-largest crypto coin, but far too many exchanges and swap pools have been using USDT as the de facto USD valuation of 1000s of other coins. But things have changed. As I look at the numbers today, USDC and BUSD have a combined market cap equal to that of USDT. Be prepared.

Former SEC official slams Tether for running a Ponzi scheme, labels firm as a ‘house of cards’

Tether Founder Responds To Concerns Over Not Publishing USDT Reserves

Tether [USDT] on shaky grounds: Will these new developments reinforce fear

According to a recent report by the Wall Street Journal, Tether [USDT] issued massive loans of around $6.1 billion as of 30 September 2022. Additionally, Tether did not publish audited financial documents or a complete balance sheet documenting the same. This lack of transparency by Tether could stir up more FUD against the stablecoin, as the community may perceive these loans in a negative light.

Like so many other crypto companies, we're back in the realm of loans and liabilities.

FUD or warning? Up to you.