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RE: The fear around the Tether situation is overblown, and here's why: - by @voiceofreason
Again, another straw man argument. How do you know most of their solvency is in illiquid assets? It's uncertain where those earning are/went.
And again we are talking about one exchange in a $500 billion dollar market where there is a very good possibility at least some of those tethers are backed, if not most!
Apart from all that, if this is your true belief are you selling everything to get out of the way of a potentially market crippling event?
Bitcoin is not a $500 billion market. The market cap of the whole space is $420 billion currently, but there is far less money in the space than that. $1 million moves the cap far more than $1 million, because of the low liquidity and high volatility that comes with a lack of actual commerce.
The vast majority of exchange assets are held in the crypto that they hold on behalf of their customers and the crypto they hold for liquidity. How many exchanges do you think are actually holding double reserves, where they hold both the crypto and an equivalent amount in fiat assets? In the song of the history of Bitcoin, exchanges going insolvent and everyone losing all their money is the repeating chorus.
Yes, I held a significant amount of EOS which I sold entirely due to the connection to Bitfinex and Tether.
Ok, good luck to you! I took the other side of your trade and bought more on the likely misplaced fear, uncertainty, and doubt.