I love how cocksure people are of Tether's decline. Do you believe reading a bitcoin (or IOTA) whitepaper is sufficient to understanding market structure because I get the sense that you do not understand it.
USDT ticks all the checkboxes of prior Ponzi's I've experienced but please, enlighten me.
Stablecoins in principle face the issue of pegging against something that dillutes at will.
But specifically USDT: How is Tether's peg supposed to work if it's alledged backing assets consist of other crypto assets ?! Shouldn't they seek less crypto exposure for stability?
Assets which are BTW unsatisfactory disclosed considering a) comparison with established equity markets and b) that such disclosure only exists at all due to law-enforcement.
Is there a place one can short Tether, that can also be trusted to pay out on a short position in the event of a catastrophic Tether collapse? I.e. not a crypto exchange?
1. Shorting practicalities for Tether not clear.
2. Need confidence 3rd party will pay out.
3. Market can stay irrational longer than I can stay solvent.
4. Especially high risks when dealing with an entity which for the moment can print money to manipulate markets.
In short, I’m confident it will fail and fairly spectacularly but I don’t know when and I’m also not sure how to go about shorting it.
If you are so sure, feel free to short Tether.