One of the reasons Tether's market cap has fallen is that Bitfinex has recently sent over 600 million Tethers to the Tether treasury wallet. This effectively takes the Tethers out of circulation.
Yes, but that's because more people are selling Tether than buying, by a large margin. They've had to redeem $600 million in Tether to maintain the peg to USD, which is still only sitting at $0.98 despite the marketcap continuing to fall. The issue is that I doubt they have enough assets to redeem the remaining $2 billion in outstanding Tether, but we don't know because they wouldn't submit to an external audit (I wonder why?
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I'm not certain how tether/Bitfinex accounting works. I'm not sure anyone outside their organization really does.
I'm not sure anyone inside their organization really does either. I would be staying well away from both Tether and Bitfinex right now.