The Upcoming Collapse of USDT Theter - Thesis Binance and its CEO ‘CZ’ plead guilty to federal charges and agreed to pay $4.3B in fines.
But that`s not all!
The crypto market is facing increased scrutiny as part of an agreement between Binance's CEO, CZ, and the U.S. Securities and Exchange Commission (SEC).
This agreement grants the SEC unprecedented access to Binance's comprehensive records, shedding light on various transactions, fraudulent activities, and instances of price manipulation linked to tether, which significantly influenced the surge in Bitcoin's value.
Of particular interest to regulatory authorities is the revelation that CZ has agreed to provide the SEC with access to tether transactions, signaling a deeper investigation into the controversial stablecoin. Tether (USDT) has long been tethered to the value of the U.S. dollar, yet recent events have sparked concerns about its stability and transparency.
What makes this development particularly noteworthy is the emerging focus on tether by U.S. agencies, who seem to be strategically positioning themselves to potentially replace it with Central Bank Digital Currencies (CBDCs). Unlike stablecoins such as USDT, CBDCs are issued and regulated directly by the central bank of a country, eliminating reliance on private entities or community-driven initiatives.
As the SEC gains access to the intricate details of Binance's operations and tether transactions, the crypto community is left on edge, grappling with uncertainties regarding the future of stablecoins and their role in the broader financial landscape. The evolving narrative suggests a potential paradigm shift as regulatory bodies aim to instill confidence in the market through the adoption of government-backed digital currencies over privately issued stablecoins.
The SEC's focus extends beyond Binance to specifically target USDT, with the intention of replacing it with Central Bank Digital Currencies (CBDCs) to assert control over all transactions. This strategic move is seen as a prerequisite for potential approval of an ETF in the future. Notably, Binance has been implicated in facilitating transactions linked to terrorist groups, including Hamas' Al-Qassam Brigades, Palestinian Islamic Jihad, al-Qaida, and ISIS, as highlighted in a statement by Treasury Secretary Janet Yellen.
Looking forward to read your opinion about it!
USDTUSD trade ideas
TETHER (USDT) COLLAPSE IS IMMINENT! With the United States about to pass strict regulation regarding stablecoins, which includes a measure to insure "Robust transparency, audit and reporting requirements," Tether is absolutely doomed, as they have consistently refused to confirm a 1:1 peg to the USD through an independent, third-party audit, which in my book, is because they're not doing it.
Something is fishy with Tether, and I would not be surprised if it has not maintained the 1:1 peg as it has claimed, but will soon be exposed as a fraud, and a ponzi scheme designed to benefit its owners at the expense of the general public.
On April 9th, Senator Kirsten Gillibrand (D-N.Y.) announced that:
"This legislation develops two paths for stablecoin issuers.
1- The first path would be for depository institutions that would allow for both federal and state bank charter depository institutions to become stablecoin issuers after an approval process.
2- The other path would be for nondepository institutions that would give the federal government supervisory authority over the state nonbank institutions while preserving states as the primary functional regulator."
This spells the end for Tether, and certain doom for any company whose business model relies upon it, such as: Exchanges, OTC desks, Trading Platforms and Wallets, Remittance Services and DEFI Platforms.
You were warned! Don't get caught holding the bag!
WHY IS THE FEDERAL RESERVE PUSHING FOR STABLECOIN REGULATION?WHY IS THE FEDERAL RESERVE PUSHING FOR STABLECOIN REGULATION?
Federal Reserve Chair Jerome Powell emphasizes the need for a legislative framework for stablecoins to ensure financial stability.
The Fed’s push for regulation highlights the growing integration of stablecoins with the traditional financial system and their potential risks.
Recent financial turmoil involving stablecoins, like the USD Coin incident, showcases their vulnerability and interconnectedness with traditional banks.
Looks like the Federal Reserve is steering America toward a future where stablecoins are not just acknowledged but also regulated. In his recent meetings with House Democrats, Jerome Powell made it plain that a legal framework for stablecoins is an absolute must if the United States is to effectively traverse these unexplored seas. This position shows a major change in attitude toward digital currencies, which is indicative of the increasing awareness of the possible effects they may have on the conventional financial system.
The Case for Regulatory Frameworks
Financial experts have come to a common understanding, as Powell has pointed out, that without a regulated framework, digital currencies might face problems as they gain popularity. One way to protect one’s wealth from the ever-changing cryptocurrency market is to invest in stablecoins, which are tethered to conventional currencies such as the US dollar. In addition to allowing merchants to make rapid transactions, they also provide a way to store or transfer funds independently of banks and are becoming more integrated into the traditional financial system. But this connection isn’t risk-free.
Recent events at Silicon Valley Bank and Circle Internet Financial Ltd. show how stablecoins are susceptible to swings in the conventional banking industry. Circle Internet Financial Ltd. had a large amount of USD Coin reserves stuck in the failing bank. Even while stablecoins are intended to be stable, they may still be affected by actual financial crises, which can impact both their value and the market as a whole. As an example of how closely linked digital currencies are to the conventional banking system, consider the USD Coin event, in which its value fell below $1 during a banking crisis before recovering due to government intervention.
The Ripple Effect on Monetary Policy
Stablecoin regulation is important to the Federal Reserve for a number of reasons, including but not limited to avoiding market volatility and mitigating their influence on monetary policy. Conventional methods of monetary regulation face a serious threat from the advent of narrow banks, stablecoins, and central bank digital currencies (CBDCs). One example of how financial regulation is changing is the way the Federal Reserve has changed its monetary policy practices since 2007. These include paying interest on reserves and using reverse repos and central bank reserves to influence interest rates.
Looking at digital currency makes this transition even more apparent. Interest rate setting and the total amount of the Federal Reserve’s balance sheet are only two areas where CBDCs and stablecoins have the ability to cause significant systemic disruption. In their published study, the Federal Reserve examines these effects and notes that monetary policy adjustments may be required to forestall a decline in lending and preserve economic stability in the case of digital currency integration.
Based on the similarities between stablecoins and CBDCs, the study concludes that digital currencies with higher interest rates would attract more investors and deter depositors from going to conventional banks, which might have an effect on lending volumes. As a result, the equilibrium interest rate would fall and the central bank would have less room to manoeuvre in times of crisis if this scenario plays out.
Another nuance comes from the idea of “narrow banks,” which compete with traditional commercial banks for customers’ deposits but do not provide loans themselves. Commercial banks may see a decline in lending capacity and repercussions to the loan market as a whole if depositors flee to these institutions due to their lower interest rates and easier structure.
TETHER is becoming increasingly more unstable.Tether is the biggest Ponzi scheme in the history of crypto and is becoming increasingly more unstable every day. USDT is subject to many factors, such as the rising and falling value of the dollar and the constant increase of Tether into Infinium to manipulate the price of other cryptocurrencies that are solely reliant upon USDT for purchase.
I do believe that we will see a day in the very near future when Tether (USDT) will collapse and lose the vast majority of its value overnight, much like the TerraUSD/LUNA collapse, except it will be orders of magnitude more extreme as Tether has a market cap that TerraUSD could only dream of, even in its heyday.
If you hold large amounts of TETHER on any blockchain, you're taking massive, unseen risk.
Tether (USDT) is becoming unstable and will likely crash to..Tether is eventually going to crack and will become depeg from the USD. When this happens - much like TerraUSD, it will lose massive amounts of marketcap and come tumbling down to pennies on the dollar. This will likely coincide with the failure/collapse of Binance.
Don't hold your buying power in USDT, USDC or any other stable coin or you could lose it in a flash!
Keep an eye on USDT/USD pair I have been checking USDT/USD pair since last weeks, and already had some thoughts that something is coming, before the news came out about Huobi. Honestly, I was expecting that something will happen to Binance, but...
Currently, Important price level on USDT is 0.9898$
Breaking below, may lead the price lower.
Ofcourse this will affect negative on Crypto Market.
FTX crash dropped USDT to 0.97$
I believe that it will be another negative move to scare people.
USDT/USD Hidden Bearish Divergence Deathcross SetupUSDT, the so-called stable coin, is now below the Bullish Control Zone on the RSI and is showing MACD Hidden Bearish Divergence on multiple Intraday Timeframes at this level after failing to take back the 55 and 89 EMAs. If this goes as any other chart normally would, I would expect it to go back down to the lows of the range, which in this case would take us down to around 94 cents, but I wouldn't be surprised if it went lower.
USDT Tether 82.45% of the reserves held in U.S. Treasury bonds !SIVB SVB Financial Group suffered the most severe bank run since Lehman Brothers for selling bonds at a $1.8Bil loss just to raise cash!
They had one of the worst possible yields as well: 1.79.
USDT Tether said on Dec 2nd, 2022, that its equity is expanding swiftly, with "82.45% of the reserves held in U.S. Treasury bonds and other cash equivalents."
What yield do you think Tether has?
I think we are about to witness USDT Tether`s collapse.
Tether's reserve program will drive the trend of BTCTether, the issuer of the stablecoin leader USDT, had announced in its reserve report last week that it held $1.5 billion in bitcoin, or about 2% of its reserves Just last night, Tether officially announced that it will be buying more bitcoin on a regular basis.
Tether to Use 15% of Net Profit to Buy Bitcoin
According to Tether's official tweet, the new reserve plan indicates that Tether will regularly use 15% of its net profits to purchase bitcoin, which is also part of Tether's reserve assets:
Starting this month, Tether will periodically allocate up to 15% of its net realized revenue to bitcoin purchases. These bitcoins should be viewed as 100% backing Tether's minimum reserve assets.
If we take Tether's first quarter net profits of $1.48 billion, that would cost the company about $220 million to purchase bitcoin.
Tether to Self-Custody Bitcoin
Tether's blog details the intent of the program, which aims to ensure a stable peg of USDT to the US dollar through a diversified reserve approach. At the same time, Tether has made it clear that it will not choose to have its bitcoin assets hosted by a third party:
While third-party custody of bitcoin is a common method for many institutional investors, Tether believes in "not your keys, not your bitcoins" and therefore maintains its own private keys associated with bitcoin assets.
Tether's Chief Technology Officer, Paolo Ardoino, also expressed his excitement about this decision to invest in Bitcoin and believes that it deepens the company's culture beyond the financial considerations: "We are not just investing in Bitcoin:
Our investment in Bitcoin is not only a way to improve the performance of our portfolio, but it is also a way to align ourselves with a transformative technology that has the potential to reshape the way we do business and the way we live.
Tether has cut 90% of its bank deposits in Q1 2023, shrinking from $5.3 billion to $481 million since the U.S. banking turmoil, and has instead increased its holdings of U.S. Treasuries, which as of Q1, Tether has over $53 billion in Treasuries.
Tether is afraid of bank thunder! USDT Q1 reserves slashed 90% of bank deposits, U.S. debt broke 53 billion magnesium
Exploring the Near-Term Risks for the Tether (USDT) PegTether isn't looking too hot right now. I haven't calibrated Cycles to work with stablecoins, but I'd assume that the seasonal current (purple) crossing the yearly current (fuchsia) is... problematic.
Maybe don't keep all your funds in $USDT.
The clustering of energy confirmations is also a very poor sign for $USDT. (Not enough historical data to say what comes after, though.)
What is Tether and why I am staying far away from itNow Tether is not your usual crypto currency. It’s not something you buy low and sell high.
What you’ll notice is that the price oscillates around the 1.000 mark.
It’s not your usual crypto currency. It’s what’s known as a stable coin. So its main goal is to track the US dollar’s price 1:1
And tether is not a long-term investment that will grow your money by itself because it stays pegged to the U.S. dollar.
So, investors use this crypto coin to hedge against the US dollar .
Investors use this crypto coin to gain exposure to the US dollar but in crypto form. Tether also sometimes acts as a “bridge” between the fiat and crypto world – as in people often buy stable coins to then buy other cryptos
It’s for the investors who want to invest and diversify their money in a non-government measure and to control their own finances instead of putting the money in banks.
Sounds good and safe right?
The problem is that Tether (USDT) always denies an audit.
They have also been investigated by the NY Attorney General’s office for lying about their reserves.
Also there is major volatility and uncertainty with crypto exchanges since the FTX and Alameda debacle.
Binance (One of the largest Crypto currency exchange) even paused customer deposits of stable coins USD Coin and Tether on Thursday morning without explanation.
This is not safe as a hedge in my opinion. Hence, it’s another reason to stay away from even stable coins like Tether…
I wouldn't buy Tether with a Barge Pole here's whyI absolutely agree that Tether is yet another Penny crypto that should not be touched with a 10 foot pole.
Now Tether is not your usual crypto currency. It’s not something you buy low and sell high.
Take a look at the chart before I continue.
Tether is not one I would consider buying.
What you’ll notice is that the price oscillates around the 1.000 mark.
It’s not your usual crypto currency. It’s what’s known as a stable coin. So its main goal is to track the US dollar’s price 1:1
And tether is not a long-term investment that will grow your money by itself because it stays pegged to the U.S. dollar.
So, investors use this crypto coin to hedge against the US dollar.
Investors use this crypto coin to gain exposure to the US dollar but in crypto form. Tether also sometimes acts as a “bridge” between the fiat and crypto world – as in people often buy stable coins to then buy other cryptos
It’s for the investors who want to invest and diversify their money in a non-government measure and to control their own finances instead of putting the money in banks.
Sounds good and safe right?
The problem is that Tether (USDT) always denies an audit.
They have also been investigated by the NY Attorney General’s office for lying about their reserves.
Also there is major volatility and uncertainty with crypto exchanges since the FTX and Alameda debacle.
Binance (One of the largest Crypto currency exchange) even paused customer deposits of stable coins USD Coin and Tether on Thursday morning without explanation.
This is not safe as a hedge in my opinion. Hence, it’s another reason to stay away from even stable coins like Tether…
USDT Tether is acting as depegged from USD from around 2 weIt seems interesting how USDT is acting more like traditional crypto asset now, than stablecoin.
You can clearly see trends, volume profile and price targets.
We don't want to be right about this, but if USDT is depegged from USD, that means that huge crypto crash is coming
Will Tether be the next LUNA ❓❗Hello guys,
i want to discuss with you the new trend of the previous couple weeks. Tether
I would like readers to comment there opinion
Is it possible that crypto will end like this ❓❗
The largest stablecoin at the moment (Tether USDT) has drawn rumors since it hasn’t made its supporting documentation public.
This comes after numerous opinions from the cryptocurrency world that the USDT cryptocurrency pair would crash next due to its incompetence in creating its “secret sauce.”
If Tether fails it would drag everything down with it and trigger a significant sell-off in cryptocurrencies.
Tether - The ominous precedent and another scapegoat?The recent market volatility and unprecedented movements in the cryptocurrency market brought along the critical question of stablecoin safety. Just within a matter of a few days, the whole cryptocurrency market was shaken up by the downfall of a stablecoin named Luna, which lost 99% of its value; this sets the ominous precedent for what might occur in the Tether (owned by Bitfinex).
Already back in July 2021, Jannet Yellen, the U.S. treasury secretary, summoned Jerome Powell and the head of the Securities and Exchange Commission to discuss Tether and the danger it poses. Then in October 2021, the Commodity Futures Trading Commission (CFTC) filed and settled legal cases against iFinex Inc., BFXNA Inc., and BFXWW Inc.
The actual text (only excerpts) from the CFTC website
1st excerpt
“The Tether order finds that since its launch in 2014, Tether has represented that the tether token is a stablecoin with its value pegged to fiat currency and 100% backed by corresponding fiat assets, including U.S. dollars and euros. However, the Tether order finds that from at least June 1, 2016 to February 25, 2019, Tether misrepresented to customers and the market that Tether maintained sufficient U.S. dollar reserves to back every USDT in circulation with the “equivalent amount of corresponding fiat currency” held by Tether and “safely deposited” in Tether’s bank accounts. “
2nd excerpt
In fact Tether reserves were not “fully-backed” the majority of the time. The order further finds that Tether failed to disclose that it included unsecured receivables and non-fiat assets in its reserves, and that Tether falsely represented that it would undergo routine, professional audits to demonstrate that it maintained “100% reserves at all times” even though Tether reserves were not audited.
3rd excerpt
“Tether held sufficient fiat reserves in its accounts to back USDT tether tokens in circulation for only 27.6% of the days in a 26-month sample time period from 2016 through 2018. “
Illustration 1.01
The recent disconnect in the peg between the USD and Tether is shown above. It can be observed that the panic lasted only little bit over two hours. However, slope of the decline is reminiscent of one in Luna.
Illustration 1.02
The weekly chart of the crypto total market cap shows a substantial decline since the beginning of the downtrend in November 2021. The orange line shows BTCUSD, a positive correlation between market-cap and BTCUSD. Bitcoin has the highest dominance in the cryptocurrency market; therefore, it has the most significant impact on the crypto total market cap's movement. A strong positive correlation can also be observed between Bitcoin and the tech industry; the light blue line in the lower graph shows Nasdaq 100 CFD.
Illustration 1.03
The picture above shows the massive drop in Luna stablecoin.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This idea is not intended to encourage any buying or selling of any particular securities; it is merely an opinion. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
The world’s biggest stablecoin has dropped below its $1 peg.Tether's USDT Stablecoin Slips From $1 Peg.
We are not registered or licensed in any jurisdiction whatsoever to provide investing advice or anything of an advisory or consultancy nature.
and are therefore are unqualified to give investment recommendations.
Always do your own research and consult with a licensed investment professional before investing.
This communication is never to be used as the basis of making investment decisions, and it is for entertainment purposes only.
USDT Bearish? Tether Limited Inc. NewsNobody ever charts Tether Limited Inc. Real ones say that the markets move the news, not news moves the markets.
if this is true, will there be USDT news around September 11th??
The Hong Kong-based company iFinex Inc., which also owns the Bitfinex cryptocurrency exchange controls Tether Limited Inc. Tether has a market cap around $66 Billion. This stable coin has been minted on at least 10 protocols and blockchains. With a global daily trade volume approx. $20billion, it supports a huge portion to the health and stability of the crypto markets.
What happens if this stablecoin becomes unstable? Who will be affected? What are the consequences of a such an event?
May 2022 - News headlines report USDT stable coin unpegged from dollar falling to $0.95. | in the past, per our candle charts, we can see that USDT has had a lot more volatility in the past when there were less users, less liquidity.. This recent dip to .95 cents left behind a trail of data points. Indicators use these data points to inform traders and trade bots to execute to buy or sell markets.
This chart reflects the daily levels and trends influencing USDT. I'm curious if something will surface in the news about Tether Limited Inc or its parent/sister companies in the coming days or week.
Price is being suppressed by a daily trend and daily origin level. Trends break or are respected over time and price is hitting trend. Will it be respected and bounce up to 1.0006? will it distribute to the supporting Origin hold level and FS hold levels for support at 0.9991 area's?
This is the start of some volatility rocking USDT's figurative boat. Will conspirators be vindicated by a total collapse of USDT or will USDT be regulated of out US markets with the introductions of a USD CBDC? We'll see.
Should I store my assets in USDT? QualitativeCOINBASE:USDTUSD
Should I store my assets in USDT?
I will try to answer this question mostly utilizing the Fundamental Qualitative Analysis.
Tether, USDT is a well known stablecoin (reference the chart). There are many just like it, Circle's USDC, Binance's BUSD, MakerDAO's DAI, they all promise a 1 to 1 peg to the USD (at the time of writing 1 BUSD is equals to $0.9987).
What is a 1 to 1 peg?
is a practice of attaching or tying a currency's (or digital asset's) exchange rate to another currency, in our case a US $.
Tether's USDT to USD $ 1 to 1 peg.
Example 1
Example 2
Since 2014, Tether has promised a full audit. People and Regulators are eager to see the audited Reserve Assets Report .
Tether does have a Transparency page, with some liquidity stats, but recent events have raise questions.
tether.to
What concerns me.
As per Tether's Terms and Conditions (last updated March 15th, 2022)
tether.to
Tether says they will not issue Tethers backed by digital tokens (BTC, ETH, ADA, etc.)
On July 8th, Tether discloses that Celsius Loan was denominated in BTC.
tether.to
On July 14th Celsius files Chapter 11
The Tweet
July 24th, Tether tweets against Ad Cookies and gives a date, 25.07.2022, I guess I should be expecting the extinction of Ad Cookies. I've snooped through Tether's website and there is a Google Analytics and a doubleclick Google Ad Manager cookie present on the pages I've visited. So, no actual Ad cookies spotted. But there is an option to Opt In!
Tether's baggage, the timeline
April 2019 - NYAG sues Tether
August 2019 - Tether goes to Supreme Court to not produce the requested documents from the NYAG
July 2020 - Tether loses the Supreme Court lawsuit
January 2021 - After a couple extensions, Tether produces the documents, documents from 2018 and older
February 2021 - Tether and NYAG settle, fine is paid and a few disturbing details are revealed, that include:
1 Tether hid massive funds losses
2 Tether was not backed
3 Tether faked an attestation that was published on their website
4 Tether commingled customer funds
... the list goes on
ag.ny.gov
Conclusion
Should I store my assets in USDT?
Answer: No
Tether has a lot of heavy history, inconsistencies, and doesn't like it's own Terms and Conditions.