This is going to sound absurd, why is the cryptocurrency market not reacting negatively? In fact prices are green and well
https://www.coingecko.com/en
Market is uninformed and do not know better...
Market is uninformed and do not know better...
Bitfinex is the only one who can give a number, and a company in that position usually places themselves in the most generous light, and they still only claimed 74%.
> Bitfinex and Tether dispute that the court has jurisdiction over the companies because, among other reasons, they do not operate in the U.S., and because both companies bar New York residents from doing business on their platforms.
Before you get too excited about that phrase, the courts in New York State have funny names. The words "Supreme Court" have a much different meaning than they do in any other state.
The market knows and has known that Tether is a scam and not fully backed. This is not what is causing the price to be what it is. Price arbitrage is one major factor keeping it up, as well as pure old fashion faith. Plenty of currencies operate that way. Including, perhaps, the paper in your wallet right now.
This doesn't make it right, or viable, or stable, or anything else. It's just a known phenomenon.
Of course, it's hard to trust this news, it might still be 25% or 2.5%.
Seasoned cryptocurrency traders are used to Tether breaking its dollar peg from time to time, its reputation is infamous. Honestly it's a relief that it's not a complete scam, 74% is better than most people expected.
What matters is that when someone cashes out their Tether, as people do from time to time, that there is enough money there to do so. The risk is that there is a run on Tether and they exhaust their available funds.
So the degree to which a trader is willing to trust tether is based on their judgement as to whether such a run will happen and that they will end up at the tail end of it and be one of the ones that loses out. But traders make those sorts of calculations and take those sorts of risks all the time. Of course every now and then some of them lose.