by Chris Black
Let me begin with the biggest redpill in crypto:
Stable coins only exist to prop up the crypto scam.
They are just conjured out of thin air, but claim real dollar reserves back them 1:1.
Any real audit would prove that isn’t the case.
But then the realization of the immense fraud would send every crypto to zero as everyone attempts to pocket their gains.
Validators are applying a patch to disable further delegations, and they will coordinate to restart the network in a few minutes. t.co/4gakxPLpLm
— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) May 12, 2022
LUNA fell in price from nearly $120 in early April to between 1 and 2 cents on Thursday.
Tether (USDT), the world’s largest stablecoin, dropped 5% on Thursday, falling as low as $0.95.
The stablecoin has recovered eventually.
For now.
You got to admire their marketing though.
Calling crypto Ponzi tulips “Stablecoins” is in itself brilliant.
Crypto since 2017 is nerds being played, willingly handing over their salary to their high school bully (who now works in marketing&biz).
You are a special kind of moron if you actually think there is $1 backing each Tether. You are also an equal to that moron if you believe the crypto you buy on Coinbase is actually yours.
Rehypothecated IOUs and fraudulently printed Tethers have added hundreds of billions to the market cap of the crypto space.
All of that will evaporate in an instant during a true liquidation. Like what happened to subprime when everyone tried to sell in 2007 and nobody knew who owned the deed.
Word of advice: if you have money in Coinbase, get out NOW. They stated if they have to declare bankruptcy they would have to take all deposits to pay creditors .
Moreover, the Tether and Bitfinex execs are shadowy ex-Wall St types who operate out of offshore havens.
Tether is most certainly NOT fully backed, as they paid several multimillion dollar fines for LYING about their backing.
Billions worth of the “dollar equivalents” on their disclosures are said to be commercial paper, but nobody in those markets has even heard of Tether.
Kraken and Coinbase are the only exchanges that allow redemption of USDT, on other exchanges like Bitfinex you can only buy more cryptos, which are of course a dumpster fire. Nobody is doing any arbitrage, moving funds into Bitfinex is simply losing them, it’s a financial black hole.
A Tether default has been predicted for YEARS, and it looks like it won’t be long now… break out your beanie babies and your hankies, boys…
Crypto started out as a good idea that was soon taken over by Wall Street with ETFs and trading.
It’s an SEC approved wealth extraction fraud just like CDOs in the last cycle.
The consumer loses and nobody goes to jail. Spin the dial and do it again.
People need to understand this goes deeper than what they thought.
Coinbase was busy pushing stablecoins like Luna on their site for months since its IPO and guess who is behind coinbase IPO?
Wall Streeters!
And guess who just crashed Luna and triggered all this fuckfest?
Wall Street!!
It appears, Citadel & Blackrock crashed crypto They borrow 100k bitcoins, contacted terra Luna & exchanged it at discount for UST like they were providing liquidty then sold off all UST causing crash, Will they ever be held accountable? @DOJCrimDiv @SECGov @FBI @BBCNews @CNN
— Donnahue George (@DonnahueGeorge) May 12, 2022
#BlackRock & #Citadel won’t be happy until they make sure we all own absolutely nothing. Smdh. #BTC #LUNA #UST #TerraUSD pic.twitter.com/whrt6CKiDw
— Traci Taylor (@taylormtransfor) May 11, 2022
As long as people are ignorant of this simple fact, they are doomed to repeat history in each cycle.
One must understand that this is not true market movement. The crypto market is controlled by the central manipulators.
Tether printing allows certain coins to increase in value, like Bitcoin and XMR, while suppressing their competitors.
Also, every coin is tied to the BTC pairs on exchanges. The market cap is simply last price multiplied with current supply.
It is not “how much money” is in the market.
To put it simply:
Stablecoin = USD counterfeiting
Where are the regulators to stop this fraud ??
I bet they’re all in in this Ponzi, because it benefits them to have $1.5T-3T of paper currency tied up in assets with no value.
If the Fed decides to destroy the US by continuing on their current path, the price of every asset will be fractions of what they previously were when priced in USD. This includes real estate, precious metals, stocks, crypto, etc.
Now, if you ask me, the FED will print once again, and then they will enforce negative rates on your saving account dollars to keep inflation up and shove a Central Bank Digital Currency (CBDC) into your wallet.
Everyone is a crypto expert until it crashes, and then you realize the guy you’ve been taking crypto advice from was your weed smoking high school buddy whose TranAm has been sitting on cinder blocks in the garage for 10 years.