Hey guys, I stumbled upon an enthralling thread of tweets that yanked my attention today, and I feel compelled to dissect this intricate web for you. So grab your popcorn because we're diving deep into the rabbit hole involving Justin Sun, stUSDT, TUSD, and the potential implications for the crypto world.

What's Cooking with Justin Sun & Co.?

In late 2022, Justin Sun, an ever-controversial figure, reportedly got his hands on a controlling stake in Huobi, which was sitting pretty with over $1.5b USDT deposits. But here's where things get shady: over time, good ol' USDT started being replaced with this new player - stUSDT.

Now, on the surface, stUSDT goes around promising returns from "Real World Assets". But if you trace the money trail, all signs point to a different story. Funds are funneled into JustLend, another platform under Justin Suns control, leaving Huobi users holding stUSDT bags, thinking they're USDT.

And interesting thing is TUSD isn’t sitting this dance out. Lately, there's been a peculiar trend with TUSD. Large sums are getting burned, only to resurface as stUSDT. The process? TUSD gets sent over to Sun-controlled wallets, takes a coffee stop at JustLend, gets reincarnated as stUSDT, and circles back to Huobi. Quite the merry-go-round, right?

The Bigger Picture & Implications

Let's zoom out a bit. If these intricate dealings are accurate, what we're witnessing is a crafty shuffle of stablecoins - a handshake between legitimate stable coin for more or less counterfeit stable coin backed by thin air. These maneuvers could be laying the groundwork for a massive liquidity crisis, with a rush to swap USDT for USDC, which, unlike its counterparts, can be redeemed for real USD.

Now, for the million-dollar question (or should I say billion?): What happens if these supposed stablecoins poof into thin air? Remember, stablecoins are the backbone of liquidity in the crypto ecosystem. They're the bridge between traditional fiat and volatile cryptocurrencies. If billions in stablecoins turn out to be counterfeit, we could be staring at a catastrophic domino effect.

Crypto's Doomsday Clock?

The integrity of stablecoins is paramount for the trust and functioning of the crypto ecosystem. If this trust is shattered, the aftermath could be so so bad. We're talking about a potential freeze in crypto transactions, a nosedive in crypto values, and we might as well kiss our decentralized dream goodbye.

So, is the doomsday clock ticking? If these dealings are as shady as they seem, the hour hand might be closer to midnight than we'd like, sad, but it’s the reality. Given Sun's history with Steem and his controversial methods, it's not hard to imagine why many are skeptical about him. His involvement adds a layer of complexity and distrust to the situation.

A Flashback at Steem Hostile Takeover

I can remember the Steem hostile takeover vividly because I was online all through that time following the drama live, an excitement from the entrance of an external investor quickly turned into a night mare and funny thing is that if you weren’t actively following the happenings live, you’ll easily think Sun was innocent,

this guy went ahead to release a public press statement that he was being hacked of his funds by Steem witnesses whereas his funds were only temporarily frozen to make him clarify his intentions of turning Steem tokens into Tron as he mentioned in a live broadcast.

his acquired stake was frozen because he had no right to make those choices over the community, especially based on the fact that the stake he acquired was meant for development and not for sale, but shady Ned Stack, the CEO of the Steemit at the time sold it to him.

Sun is not your friend

He then went ahead to call his friends at Binance and Huobi to help him by powering up Steem tokens on their exchanges to help him vote out the Steem witnesses and install his own sock puppets to take over the Steem blockchain which they did and which was unethical to stake user funds.

Ofcourse when Binance was called out, he formed ignorance and claimed he had no idea of what happened and only responded to a friends call for help, this was when Binance fell off for me, because if we were in a much regulated space the exchange should have been sued for staking user funds, that single action from Binance and Huobi cost a lot and led to a lot of damage.

This is why up until date, I don’t go near anything that has Justin Suns name on it, not even with a 10 mile pole.

So what is the way out

Sad to admit but the only way out might be the eventual crash of these counterfeit stable coins and the unfortunate market crash that will follow, it might be an unavoidable disaster that will force the community to pivot to better designed truly decentralized stable coins that will secure our future, it might leave a sour taste in our mouth but the future generations will sure thank us for it.

When this will happen, no one knows, I hate to be the one to talk doomsday talk like this but we have to be real, infact, the earlier it happens the better, but who knows….

may God help us.

Link to tweet. https://x.com/dylanleclair_/status/1709712204675555651?s=46&t=TenfYaYO9FZtybkrDTOMCQ

Images are Ai generated

Posted Using LeoFinance Alpha