thecoinrepublic.com
- Tech world is currently crawling with news regarding a couple of things: Twitter acquisition by Elon Musk and the ongoing havoc in the cryptocurrency market because of Terra USD.
- Elon Musk’s lengthy history of acting with impunity is well documented, partially due to so much of what he has got away with directly includes his decision of twitter acquisition.
- Plethora of folks are under the impression that Elon Musk is playing the similar game as his other public organization chief exec peers.
The Fleeing Musk
There was a time when Elon Musk alleged a British cave diver as a “pedo guy,” stating in a tweet that if he wasn’t a pedo, he would sue, sent material recommending he was a pedophile to a reporter. One time, he also made a tweet stating that Tesla will be going private at a valuation of $420 per share.
He also took over 5% stake in publicly traded organization, failed to unveil the share when he was legitimately required to secure $143 Million as he constantly built stake in secret. There are many more events regarding Elon Musk that made him a center of debate globally.
Some might dispute that Elon Musk has eventually got away with all that. Yes, he triumphed in court against Vernon Unsworth, the British diver; but he was faced with a fine by Security and Exchange Commission for his “funding secured” tweets, and is being investigated by the officials for his missing disclosures over Twitter take over.
In spite of that history, myriads of folks think that Elon Musk is playing the similar game as his rest of public organization chief executive peers.
The Twitter take over is in motion. Elon explicitly waived his right to perform due diligence as an element of his take it or leave it offer to the organization. The terms of this agreement enable Twitter to force Tesla CEO to complete this take over. If he fails to complete this deal, he still has to pay $1 Billion upfront.
The Stablecoin Collapse
There is no better example of this superpower than the crypto sphere though. If there is one thing which defines the space, it’s not playing by the rules everyone else is playing.
Take Tether, $80 Billion worth of stablecoin which several fear may become a vulnerable link in the whole ecosystem. Tether has comparatively an easy business design: you offer it US dollars and it offers you a transferable note stating that it is holding funds for you; whenever you need, you can give the note back and get your USD back.
If you think it is similar to a bank, you’re right. It carries out a number of functions similar to traditional banks in the crypto sphere, and Tether business behind it generates income in a similar fundamental way as a bank, investing client deposits in secure and liquid assets to create profitability from its reserves.
But it is not actually a bank even if it operates in a similar way. It is not commanded like a bank, and does not have a need for compliance with bank’s reserve ratios, nor have to follow anti money laundering restrictions similar to a bank.