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20 sats \ 1 reply \ @siggy47 5 Jun 2022 \ on: Tether FUD? bitcoin
Well, a couple of things:
- Regarding price manipulation, this exists in all markets. Look what happened earlier this year with the London Metals Exchange https://www.forexfraud.com/news/metals-exchange-suspends-trading-and-cancels-billions-of-dollars-of-trades/ The gold market has been manipulated by central banks and their proxies for years https://www.reuters.com/article/jp-morgan-spoofing-penalty-idINKBN26K325
Ditto US Treasuries https://www.justice.gov/opa/pr/former-bank-employee-pleads-guilty-manipulating-us-treasury-securities-prices
And who can forget last year's Robinhood meme stock mess?
2. Bitcoin supporters have no control over tether, and I agree the bitcoin price would be negatively impacted if tether lost its peg. However, the situation with tether is fundamentally different than UST in that tether is not backed by bitcoin.
That's what I thought regarding price maniuplation, bitcoin is not the exception, and most markets are prone to that. But the fact that most of the trading is done via tether shows how supportive the whole system is regarding that particular stablecoin. I guess all this can be summarized with the ole' "not your keys, not your coins". Keeping BTC at centralized exchanges is very risky.
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