Crypto analyst Defizard (@belizardd) made waves with an in-depth Twitter thread arguing that Tether’s USDT stablecoin is on the brink of collapse. Given USDT’s systemic importance, this perspective merits close examination.
What you'll learn 👉
Defizard Warns of Imminent USDT Crash
Defizard sounded the alarm emphatically, declaring: “$USDT crash is coming! $UST scenario is about to happen. Prepare to be shocked!” This comparison to UST’s catastrophic de-pegging last May frames his dire thesis. In Defizard’s view, Tether is barrelling towards a similar fate imminently.
USDT’s Lack of Transparency Raises Concerns
A key vulnerability highlighted by Defizard is USDT’s lack of transparency around its reserves. USDT dominates the stablecoin market but has yet to complete a reputable audit. This opacity leads Defizard to question if USDT is fully backed as claimed.
Unregulated Printing Seen Distorting Crypto Prices
Additionally, Defizard argues USDT prints unregulated coins that artificially inflate crypto prices and stoke speculation. A loss in confidence could ignite a death spiral of redemptions.
Regulatory Scrutiny Also on Horizon
Given Tether’s scale, Defizard asserts regulators will soon target USDT. This pressure could rupture USDT’s fragile stability. Defizard sees USDT’s collapse as inevitable despite its survival so far.
In summary, Defizard makes an urgent case that USDT replicating UST’s swift unraveling is imminent. While other experts see risks as manageable, Defizard warns the stablecoin industry remains fragile. If perceptions shift, even giants like Tether could fall.
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