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Comment by bb88 | Hacker News Reader

1. The people using it don't care if it is, as they may be trying to grift each other anyway, or be using it for short term holding, transferring between crypto accounts.

2. We would only see this on a massive sell off when Tether can't prop up the price fast enough with their reserves (by buying USDT with USD). This almost happened on May 11 of 2022.

3. The Madoff scam went years and years before finally being outed in 2008. Decades perhaps?

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Tether is hard coded to bounce between their float. Tether made a mega fuck ton of money when that float widened and so did all the hft firms. Most of the tether is held by insiders and they can utilize that tether to obtain 100x leverage. You can literally see on chain when the yield widened back in may 11th, that sythetix and other leverage platforms got a huuuge influx of USDT and they used that USDT to purchase more USDT on the low… and guess what? Made a killing.

They are too powerful with too much money and too much centralized collusion to fail on their own. And the US policy still can’t define crypto, let alone police it properly. Only the full might of the US judicial system will make tether fail.

> We would only see this on a massive sell off when Tether can't prop up the price fast enough with their reserves (by buying USDT with USD). This almost happened on May 11 of 2022.

This did not almost happen. Do you enjoy writing fiction?

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