Two powerful forces may in fact spare Tether FTX’s fate.
The first, on the public side, may be the sheer intensity with which people choose to not even think about it. There is a lot of youthful energy and idealism behind crypto, in addition to many people’s fortunes, and the thought that something as big and fundamental to the crypto ecosystem as Tether could be a complete scam might very well be a difficult pill for many to swallow. Indeed, many in the crypto-sphere have embraced cryptocurrencies as a technological alternative to corrupt centralized governments.
This brings us counter-intuitively to the second factor that may be propping up Tether: the sheer magnitude of the government’s corruption itself, and the government’s reliance on Tether as a convenient vehicle for that corruption.
Thus we are left with the possibility of a dark comedy according to which government corruption is one of the main things preventing the cryptocurrency project from spiraling into a Lehman-like collapse.
Thus when it comes to Tether, “Too big to fail” may very well have become “Too big to even lift up the veil.”
But eventually, somebody has to take a look. Right?