The reasoning goes as follows:
If Tether is not backed 1:1 with USD, but in the meantime they have printed Tethers as if they were, they have essentially bought Bitcoin on a large scale with IOU's that are worth much less than a USD. Which would mean Bitcoin's price has been inflated with air. That printing started somewhere in September or November. Look in the chart what the real price of Bitcoin should be.
The issue is whether the 2BN is there or not, the news that it could possibly not be there is already published and being priced in. It would take an official announcement from the SEC that Tether is not a scam for the price to recover, but I don't see that happening. The result is even if you're not a holder of Tether, you will see the prices of almost all coins go down.
How did we ever let shit like tether enter this arena if there was no proof or auditing constantly that they were not just printing this dog shit with no USD for real to back it up.
Do you mean you don't see the SEC announcing tether was on the level or you believe tether is not on the level. I mean surely if they are not banged up and tether destroyed then they must have been on the level.
Either way unless that had constant and continual auditing done by some big trusted places then of course it must be avoided like the plague.
Also how does 2bn (i mean not all of it could be fake right? so maybe just 1bn or less) destroy the value by so much?
What will happen to the issuers if they are found guilty of fraud on such a huge scale?
