Tether’s $4B Bitcoin Transfer Raises Red Flags
Tether’s sudden $4B Bitcoin move to Twenty One Capital sparks fears of market manipulation and crypto fraud.
- Tether sent $4B in Bitcoin to Jack Mallers’ new firm, Twenty One Capital.
- Critics question the organic demand for Bitcoin behind the move.
- Mallers’ new lending platform draws comparisons to past crypto failures.
In a puzzling development, Tether has transferred 37,229 Bitcoin—worth nearly $4 billion—to Jack Mallers’ newly launched firm, Twenty One Capital. What’s raising eyebrows is the timing: the transfer came just a day after the firm’s launch, at a time when there appeared to be no significant investor interest or demand.
Critics argue that this isn’t a natural market transaction but a manufactured effort to create the illusion of enthusiasm for Bitcoin. It raises the question: is Tether artificially inflating demand to keep Bitcoin prices stable or rising?
The transfer appears more like a strategic handoff than an actual investment, leading many to speculate whether Tether is propping up the market to avoid a larger crash.
Is Bitcoin Demand Being Fabricated?
The broader concern here is the implication that organic demand for Bitcoin may be drying up. If Tether is now the only major buyer in the market, it presents a fragile ecosystem built more on illusion than genuine investor interest.
Adding to the suspicion is the lack of transparency. Tether’s reserves and operations have long been criticized for opacity, and this sudden, high-value transfer only deepens the skepticism.
Mallers’ New Venture Echoes Past Crypto Scandals
Meanwhile, Jack Mallers’ Twenty One Capital isn’t stopping at Bitcoin. The firm is also introducing a lending service—one that is eerily reminiscent of past crypto disasters like Celsius and Bitconnect.
These failed platforms attracted users with high-yield promises before collapsing in scandal and massive losses. Many fear Twenty One Capital could follow a similar path, especially given its association with a potentially artificial liquidity injection from Tether.
For those cautious about the crypto market’s stability, this development serves as a warning: proceed carefully, and don’t fall for hype without substance.
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