Techub News reports that crypto assets industry researcher @DesoGames tweeted that Tether may lack real USD support. Some companies like Abraxas, Cumberland, and Wintermute are using borrowed funds to purchase USDT, converting it into Bitcoin and other crypto assets, and then selling it for USD, thereby increasing leverage in a continuous loop. If prices fall or demand wanes, the system could collapse, leading to unpayable loans and forming a Ponzi Scheme.
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Techub News reports that crypto assets industry researcher @DesoGames tweeted that Tether may lack real USD support. Some companies like Abraxas, Cumberland, and Wintermute are using borrowed funds to purchase USDT, converting it into Bitcoin and other crypto assets, and then selling it for USD, thereby increasing leverage in a continuous loop. If prices fall or demand wanes, the system could collapse, leading to unpayable loans and forming a Ponzi Scheme.