Thread by @ODELL

#Tether is/was:
- created to bypass KYC/AML laws & the banking blockade on exchanges that don't comply.
- a centralized stop-gap solution until connections to fiat are unneccesary.
- most likely holding reserves in an offshore bank account.

#bitcoin $btc

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2/ @Tether_to cannot defend themselves b/c they risk gov't intervention. Making their bank account(s) public puts them at greater risk of being shut down & assets seized. They also can't acknowledge back room deals between the exchanges & them, that puts the exchanges at risk.

3/ The similarity between Tether & the online sportsbooks/casinos that have had to route around banking blockades for years is obvious. Both need to use sketchy banking practices to maintain their businesses or face government intervention.

4/ The way Tether's business is setup, it is impossible to tell if they are fraudulent or honest. It is a centralized service & you have to trust them. The main guys behind it are #bitcoin heavy hitters, who have made a lot of $$, & will make a lot more if Tether doesn't fail.

5/ Their incentives are in the right place. If Tether fails they will be hurt the most. I still think the biggest risk to Tether holders is govt intervention rather than fraud. They seem to think so as well, that's why they changed their ToS & reduced transparency.

6/ They will lose a lot more than $700M if Tether fails. I expect them to unofficially maintain the USD/USDT peg on Kraken & Bitfinex barring government intervention.

I still don't think you should own any Tether. Too much risk. Just think fraud claims are unfounded.