[kirse]

As long as there are well-capitalized parties that want to prop up Tether

That's been my personal conclusion as well but it led me to the next question of what # is the breaking point for these well-capitalized parties?

I tried looking at the size of other well-known collapses like Enron, LTCM, Lehman Bros, etc. LB reportedly had $700B in assets and liabilities before the underlying asset devaluation precipitated their cave in. Tether survived the recent de-peg due to trading shops like Alameda absorbing the free 1-5% with their cash flow, which I believe is also responsible for the recent 11% drawdown in Market Cap (I assume due to redemptions). That said I'm not really experienced enough to know how these backroom overnight liquidity issues get resolved.

My hunch is given the true global reach of the crypto market Tether could easily get to $nnnB or $nT before we experience a black swan event that results in a liquidity crisis. Assuming they survive these short-term recessionary pressures, my long-term prediction is we're just setting ourselves up for another roaring '20s again, with crypto eventually learning all the same fundamental financial lessons we did back then.

[dwater]

I don't have the time, but I'd love to see someone rewrite "Reminiscences of a Stock Operator" as "Reminiscences of a Crypto Operator". I don't think you'd have to change any of the scams, only the context. Partner with a good illustrator and it would make a lovely coffee table book.

https://en.wikipedia.org/wiki/Reminiscences_of_a_Stock_Opera...

[overtonwhy]

The majority of this scam is happening on unlicensed unregulated off shore exchanges. They don't keep client funds segregated either. When the bubble pops they all go down. The bag holders won't even realize it until the website domains stop resolving. It's musical chairs and the music stopped playing earlier this year when the audits of Tether's reserves came out. Now people that were listening are getting as much out as possible before the seats are all gone.