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The bigger conspiracy is that Tether might have been used to pump the price of bitcoin and other cryptocurrencies. The theory goes something like this: - Bitco
by simias 9y ago
The bigger conspiracy is that Tether might have been used to pump the price of bitcoin and other cryptocurrencies. The theory goes something like this:
- Bitcoin starts dipping.
- Bitfinex/Tether generates millions of USDT out of thin air.
- They use them to buy Bitcoins, sending the price back up.
- Once the price is high enough they can sell a few of these Bitcoins they effectively got "for free" and make a ton of money.
A big proponent of this theory is "Bitfinex'ed": https://medium.com/@bitfinexed https://medium.com/@bitfinexed
- Canada 9y agoHow much Tether out of thin air would it take to do that? There's only $2B tether in total, but BTC alone trades $8B every day. And that's down a lot compared to the last few months.
- Nursie 9y agoBut that's not 8 billion of new money coming in to the system. 2 billion of new demand (almost a billion in January alone) is a hge deal.