Wall Street CEO on Tether Controversy: 'They Have the Money'
coindesk.com
coindesk.com
That's... not convincing.
The Chairman and CEO of Cantor Fitzgerald, a primary dealer and banking partner for Tether, says Tether has their money.
Deltec bank, a banking partner for Tether, says Tether is fully backed by reserves. https://www.coindesk.com/business/2021/01/22/tethers-bank-de...
That's not convincing?
> Does Tether have the money it says it does.
> "They have it," he said during an interview with Bloomberg TV.
That's not a direct reference to the currency being pegged. "the money" and "it" is non-descriptive; it might as well be referring to the advertising fund or the community bingo payout.
> "I manage many of their assets," said Lutnick, who brought up crypto in the interview that was streamed live from Davos, Switzerland. "From what I've seen – and we did a lot of work – they have the money they say they have."
"Many" of their assets says nothing about whether they are pegged. If anything, the fact that he hasn't seen the remaining assets should be alarming to him. The only actual fact that he claimed in the entire article is that "we did a lot of work", which may well be true but has nothing to do with the Tether controversy. The lack of detail or scrutiny should alarm any diligent investor familiar with tradfin scams.
>That's... not convincing.
Tether is a toxic creation within the cryptomarketcap, similar (metaphorically) in nature to how [some] hedge funds [can] use dark pools to make non-public trades, ensure public fund liquidity, obscure equitability, lie, cheat, steal; etc. Don't ever forget that YOU ARE JUST DUMB MONEY — all the bells&whistles are intended to get the money to it$ rightful corporate owner [1].
Tether's implosion (hopefully `when`, not `if`) would rock the entire cryptomarketcap; but ultimately would return the cryptocurrency-space to the principles founded within Satoshi's fundamental "white paper" [e.g. unlimited block sizes, no lightning/segwit, PoW, verifiable self-accountability].
I'll keep holding my breath, but until then... I'll keep HODL'ing.
[1] "I can spend it better" I once heard a philanthropist laugh to his subordinate.
No one is using dark pools to "lie, cheat, steal, etc." Plenty of market participants (including retail) use dark pools for goals like price improvement or sophisticated order handling like TWAP orders. Dark pools would not be possible without the lit markets that we all know and enjoy. All of these dark pool executions are reported to FINRA.
I've got an Eiffel Tower to sell you. I accept bitcoin.
[This was legitimately a fun interaction, thanks for your perspective]
I think you're right about that, but I'm not sure things would end any better with a traditionalist approach. L1 cryptocurrencies are still fundamentally broken right now, if people found out that L2 chains were a scam it would probably dilute a lot of the interest in crypto as a whole.
> but until then... I'll keep HODL'ing.
Fortune is a fickle business.