$62 billion Tether fraud?

The Crypto Time-Bomb is Finally About to Explode

The last paragraph of the article:

Long story short, it’s an extremely risky moment to have your finances tied up in cryptocurrency, and if you happen to have your crypto stored on an exchange like Binance you are putting yourself doubly at risk. Both of these companies are on the ropes, and if either one implodes, the crypto market will undergo a devastating flash crash. But it isn’t just a concern that your crypto will lose value. If things go south, it’s highly unlikely that you will be able to pull your crypto or fiat out of an imploding crypto exchange, so you could lose every penny that isn’t in your own direct possession. To me, the risks outweigh the potential for reward, and I won’t be touching crypto again until the bomb has exploded and the dust has settled.

I have never understood how people view the risk/ reward of USDC or USDT? Yes the yield is better than the repo window at the Fed but the difference in counterparty risk is a little higher. :wink:

The choice of words tells a lot about attitude of people.
How do you measure risk?
Your credit card is more at risk than crypto on reputable exchanges.
There is no bomb and there is no explosion.
The only thing that is “real” is your perception about the world. Your perception is the driver of your words and action. If you feel scared then you perceive bomb, explosion, extremely risky and if you feel great than you perceive positively with great choice of words.

there is probably more chances of Algo dropping to zero then Tether. Whales that got the tokens at 3c has been constantly selling and there is no more retail interest in Algo because the PA is so bad. you want to call Algo out as a fraud as well?

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I do agree with the issue you raised about USDT & Binance. I have already exited from cryptocurrencies and only hold enough ALGOs for actual usecases requirements. I do believe that crypto will revolutionaise the FinTech space in the long run, infact, its impact is already showing.

CBDC is the case in point, the success of BTC & ETH have forced the central banks to think seriously about joining the DeFi bandwagon. Having said that, CBDC will disrupt the DeFi and trigger a crash. The logic of my thinking is that, the foundational usecase of DeFi is to create stable coins and provide a cross liquidity across the token ecosystem.

As per defipulse.com, $75.5B is locked in DeFi space. When CBDC comes along, many (not all) present usecases will be rendered obsolete. Thus unlocking much of the ETH, which will suddenly create an excess liquid supply.

Last time a whale moved, it resulted in a 50% price drop, it will be interesting to watch the outcome, when $75B worth of ETH gets freed.