By John Miller
Sunday the 28th of January 2017
The flight to Ethereum safety is set to take on a whole new level of urgency today, as the news gets out that Tether and its auditor have parted ways. Will the USDT token and Tethering Up soon become a thing of the past? Who knows, but the FUD is flying thick and fast.
USDT has been accused of being a ruse to artificially prop up the price of Bitcoin. This is all well and good, as long as whoever is honouring all these Tether cashouts is solvent. This is rumoured to be Bitfinex, a massive Asian exchange that is twice the size of the largest American exchange.
If there is a run on Tether, which has a market cap of $1.6 BILLION dollars, Bitfinex (or whoever is behind USDT) will either have to walk away from Tether, or go insolvent.
Even if Tether survives today’s FUD about no longer being audited, its reputation as a safe haven has just taken a massive hit, and we are likely to see an Ethereum pump because of it. In what was already a bull market for Ethereum.
If Bitfinex was behind USDT, it seems they are no longer fully invested in a Bitcoin future either.
Just days before this FUD about Tether hit they announced Ethereum pairing on all their Alts. More evidence, if any was needed, that the Ethereum-Bitcoin Flippening is on.
So what are we to make of this? Well for a start, you want to be in a safe harbour, and the safest harbour is ETH. Buy ETH, hold ETH, and watch ETH go absolutely nuts this year.
Every time I think I’ve got my portfolio set I get another chance to buy those Alts even cheaper, and I wonder why I even bothered putting good ETH into them in the first place.
Everybody comfy for the Tether happening now? Good. Let’s roll.
Full disclosure: John Miller’s IRL name is Frank Faulkner. I’m an Aussie and when I’m not obsessing about Conservative politics or defending Trump I also enjoy various sports and Christian activities. Somehow I ended up in the Anime Right in 2016 because of Trump, and I trade Crypto because I want a Lambo.