51–60 of 359 posts
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Whether the accusations are true or not, I wouldn't hold a single dollar in Tether after reading this on their website: > “There is no contractual right or other right or legal claim against us to redeem or exchange your tethers for money. We do not guarantee any right of redemption or exchange of tethers by us for money.”
I don't use tether either, but this seems like total unsubstantiated nonsense to me.
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From where does the contract pull the current price of USD? Wouldn’t it be vulnerable to receiving incorrect pricing data?
I've gone back and forth on this. Current plan is to use Oracalize. http://www.oraclize.it/
Aside from the discussion on Tethers I am sure this is not going to stop cryptocurrency buffs from talking/selling another round of "stable" coins. The unfortunate thing is time and again same old story is presented about either: how the company releasing the coins will act as lender/buyer of last resort or how "markets" will prevent the peg from going out of whack. The former logic forgets about how it puts a lot of…
One only needs to read about Long-Term Capital Management to see how flawed this is.
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For a normal person/business to ever use a cryptocurrency, there needs to be one that is price stable. Meaning it's going to be worth the same $ tomorrow that it's worth today. Imagine if you could send money anywhere, with almost no fees. That was the dream of bitcoin, but currently bitcoin fees are crazy high, and the community isn't close to solving it yet. Ethereum seems to be more scalable and has a benevolent d…
bitcoin fees are crazy high but fixed per block, right? in other words, if I were to send 2 mln usd, the fee would actually be low in % terms?
So if it's not urgent, you can send $2 million USD with a fee of $0.20.
There has been a blogger/journalist tracking this and writing some great analysis on Tether and BitFinex https://medium.com/@bitfinexed/
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For a normal person/business to ever use a cryptocurrency, there needs to be one that is price stable. Meaning it's going to be worth the same $ tomorrow that it's worth today. Imagine if you could send money anywhere, with almost no fees. That was the dream of bitcoin, but currently bitcoin fees are crazy high, and the community isn't close to solving it yet. Ethereum seems to be more scalable and has a benevolent d…
bitcoin fees are crazy high but fixed per block, right? in other words, if I were to send 2 mln usd, the fee would actually be low in % terms?
Rising complexity of financial instruments? Check. Uncertainty about the capital backing of a booming market? Check. FOMO fever? Check. Where have I seen this before?
In .com - companies were creating value, and we all assumed people would pay for 'email' - turns out consumers would not - so many businesses failed, and there was a stampede out of equities.
All of this coin and ICO fraud, including 'regular company' valuations of 300x P/E rations - is absurd.
In 2000 - the bubble was popped with a little bit of an interest rate hike that caused major funds etc. to scramble, causing a stampede.
Markets are definitely emotionally positioned for a black-swan event to cause a scramble.
The markets have to correct for all this sketchy/possible fraud going on.
In my country banks moved away from their social propose lending, and they just take high commissions for everything (eg. ATM commission for seeing how much I have in my account) and buy state bonds with deposits money, they advertise credits, but they don't actually credit businesses they credit people who don't need a credit and have enough real estate guarantees to pay the loan in full, so they won't lose interest profit.
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I don't understand this. How can you store the USD reserves inside the blockchain? AFAIK the blockchain can only keep track of the cryto-tokens, not of the real money.
The reserve will be in Ethereum (and possibly also in ERC20 tokens like OMG), not USD. You buy Unum using these other cryptocurrencies, and can always sell Unum to buy anything in the reserve, always at the current USD spot price. This of course raises the possibility of the USD value of the reserve falling below the # of issued Unum. In that case, a sale penalty goes into affect, to discourage selling and increasing…
Aside from the discussion on Tethers I am sure this is not going to stop cryptocurrency buffs from talking/selling another round of "stable" coins. The unfortunate thing is time and again same old story is presented about either: how the company releasing the coins will act as lender/buyer of last resort or how "markets" will prevent the peg from going out of whack. The former logic forgets about how it puts a lot of…