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Tether is probably a fraud and no one seems to care

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At least, that's my take after reading Bloomberg's recent piece Anyone Seen Tether’s Billions?


For those unaware, Tether is a cryptocurrency that is pegged to the dollar and seems to be primarily used as an intermediary to buy or bet on other cryptos. It's become something of a standard for that purpose and has ballooned over the last year to an astonishing $69 Billion in valuation. Now, as a stablecoin, that theoretically means that they should have one dollar for every tether sold, but Bloomberg isn't able to find much evidence that's the case.


You'd think that would be a big issue, given how widely used it is. At it's current size, Tether is the size of one of the larger banks in the country, and a run on tether could have broad implications far beyond crypto. Beyond not really being able to verify tether's cash holdings, the other big takeaway from the Bloomberg piece is that people didn't seem to care. The crypto bros they talk to seem to agree that there likely is something shady going on, but they keep making money, so no point in being worked up about it.


The article is worth a read, if only for the descriptions of the folks who run tether.

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Somebody posted a video about tether here a couple of months ago and it quite clearly laid out that it is indeed a scam. I’ll check this article out as I’m interested in the nobody caring part.

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