Yea, I just read about Evergrande yesterday and it does look like a shitty situation for the Chinese bond market. Could cause a serious hit to their economy and infrastructure, as Evergrande is tied to most of the massive skyscrapers China is renowned for. It's being tied to government bonds and infrastructure makes it a double edge sword.
Don't know how much of Tether is vested into Evergrande, so difficult to say. Still, if it does affect the crypto ecosystem, I'll be ready to buy up ETH, ADA, Link and DOT.
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When Tether were investigated they said 50% of their reserves come from commercial paper. Tether is Hong Kong based
and Evergrande happens to be China’s largest issuer of commercial paper. China dumping bitcoin makes a bit more sense if Tether and Evergrande are linked.
I actually came across this possible connection back in July and dismissed it as tinfoil, but now I'm not so sure. Even without Tether the CCP need $300 billion to bail out Evergrande. It needs to be paid in dollars, so market corrections and sell offs are very likely across the board.
Update*
CCP has allowed Evergrande to reset debt terms and can kick. The payments on loans were originally due on the 21st (Maydays crash dates were the 22-23rd) but they have no money and assets are grossly overvalued, so the can kick looks pointless.
Reading between the lines it looks like the CCP said no to bailouts. Putting the tin foil on the CCP looks like they are willing to screw investors, let Evergrande go bust and then they'll pick the rotting carcass. The Chinese version of 2008 looks in play.
