Tether Chain Swap Fraud. Non Existent Burns. : u/StablecoinsFraud

In recent years, cryptocurrency prices have benefited from the increasing adoption of “stablecoins”, a surrogate for fiat currency which have increased market liquidity and made trading of cryptocurrencies more accessible to retail investors. The largest of these “stablecoins” is Tether (also known as USDT) which has the third highest market capitalization of all cryptocurrencies at approximately US$62.6 billion[1], almost half of which has been generated in the past six months.

Although not necessarily well known, USDT is integral to cryptocurrency markets as it facilitates and enables a large portion of daily liquidity, particularly on unregulated exchanges. This can be demonstrated by looking at the volume of USDT that is traded on a daily basis, which is often larger than the trading volume of either Bitcoin or Ethereum.

As USDT’s value is “pegged”, it is often overlooked because, for investors, it is an intermediate step for turning the US Dollar into cryptocurrency investments. However, with USDT’s ever expanding role in providing liquidity in cryptocurrency markets and its deeper integration into the cryptocurrency ecosystem, it is extremely important for them to conduct their business transparently and with integrity as they are effectively custodians for US$62.6 billion of client monies, which includes your money as USDT is widely used on exchanges such a Binance and, more recently, Coinbase. If, as this article seeks to assert, the value of USDT is likely to be less than the market’s current valuation this has a significant impact on all parties that either hold or interact with third parties that hold USDT, including the exchanges. If exchanges such as Binance, who hold at least USDT17.1 billion[2], are heavily exposed to USDT and it effects their solvency this has a direct implication on your ability to withdraw your funds and your assets, potentially losing vast sums.

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