Mt.Gox just started approving claims, we have over 140 000 BTC to distribute, it should have a clear market impact, it's economics 101. I could be wrong in the case where this event is already priced into the market, but I doubt it is. People in the crypto market tends to be short sighted until the bomb is on the doorstep.
Tether accounts for 80 - 90 % of the trading volume and they've just admitted to have a variety of assets on their balance sheets they weren't suppose to have to begin with, including outstanding loans to affiliate partners..
Even if, the outstanding loans were to entities who won't have any problems paying back the loans, the legality of Tether's business is highly questionable and a complete shutdown wouldn't surprise me a bit, just like what happened to Liberty Reserve.
Do you have to say anymore, no thanks!
A collapse of Tether would literally collapse this market, we need other stable coins to take over now.
Not just due to lower trading volume, but also due to possible fractional reserve practices coupled with a crypto market where 1 Billion USD can cause a 25 Billion rise in market cap due to the "money multiplier".
If the valuations were closer to pre-ico craze I could have tolerated some of this risk, but it still feels like we're in some type of hyped up valuation, it looks either manipulated or still irrational if you ask me.
Just look at a project like Bitcoin SV, no one in their right mind could say that it's worth the valuation of over 1 Billion USD, irrationality or manipulation is causing these prices and I think I'll keep having patience until this gets resolved.
Am I wrong in my reasoning?
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