Quick clarification question. The Twitter post promoting this article says "The window for a looming Tether collapse is growing thin.". Does this mean the window of time during which Tether may collapse is closing, and that it will stabilize if it passes through that window, or does it mean that the amount of time before an inevitable catastrophic collapse is now a very small.
The latter. It appears for now that financial conditions have stabilized (lower vol, credit spreads falling) as we approach a period where markets are signalling a pivot (rate cuts) a few quarters out. If financial conditions fail to deteriorate before then, it's likely Tether will see inflows as financial conditions loosen.
So your answer appears to be "Tether's inevitable collapse will be soon upon us, unless it survives for a few quarters, at which point its collapse will be more evitable."? ;-/ (Sad attempt at a cocked eyebrow ASCII Smiley.)
Exactly. There is no political will or means to take it down. Only a severe credit crunch resulting in a internal crisis at Tether (or panic within Tether’s circle) can bring it down.
Quick clarification question. The Twitter post promoting this article says "The window for a looming Tether collapse is growing thin.". Does this mean the window of time during which Tether may collapse is closing, and that it will stabilize if it passes through that window, or does it mean that the amount of time before an inevitable catastrophic collapse is now a very small.
The latter. It appears for now that financial conditions have stabilized (lower vol, credit spreads falling) as we approach a period where markets are signalling a pivot (rate cuts) a few quarters out. If financial conditions fail to deteriorate before then, it's likely Tether will see inflows as financial conditions loosen.
On reflection, a few quarters is not a thin window, relatively.
So your answer appears to be "Tether's inevitable collapse will be soon upon us, unless it survives for a few quarters, at which point its collapse will be more evitable."? ;-/ (Sad attempt at a cocked eyebrow ASCII Smiley.)
Exactly. There is no political will or means to take it down. Only a severe credit crunch resulting in a internal crisis at Tether (or panic within Tether’s circle) can bring it down.
OK, thank you for taking the time to reply.