What is the point of Tether? Is it for dodging taxes?
Tether is supposedly pegged to USD. Traders use it to store assets while avoiding crypto price volatility without having to deal with fiat currency.
U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
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Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
#12If this is a grand jury subpoena, things could get ugly fast in the crypto space. Despite all talk of decentralization, the major exchanges pose a systemic risk.
How is this related? USDT is effectively a centralized currency. Bitfinex has always been shady. Are you saying that exchanges that accept USDT will get hit hard by this?
Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
#13>Tether has yet to verify that it holds $2.3 billion in reserve
This will be interesting to see. I wonder how long until we'll know.
I saw an interesting data analysis here on HN a while back showing a correlation, and hypothesizing a causation between the rise of Tether and the price of BTC.
Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
#14This is good news for quality cryptocurrency organizations. Bitfinex has problems, so does Tether and it's good to see bad actors in the crypto world getting weeded out, called out and put down.
Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
#15it's based in Hong Kong. Hope they don't comply.
Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
#16What is the point of Tether? Is it for dodging taxes?
Creating fake USD to inflate the value of various crypto currencies.
Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
#17What is the point of Tether? Is it for dodging taxes?
In Europe, trading like-kind assets isn't a taxable event, so a lot of people take gains and move them into USDT.
edit: At least that's what I remember seeing last, laws may have changed.
Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
#18If this is a grand jury subpoena, things could get ugly fast in the crypto space. Despite all talk of decentralization, the major exchanges pose a systemic risk.
How is this related? USDT is effectively a centralized currency. Bitfinex has always been shady. Are you saying that exchanges that accept USDT will get hit hard by this?
> Are you saying that exchanges that accept USDT will get hit hard by this?
If they sold a single USDT to an American, possibly. At the very least, they may be liable for American USDT investors’ losses plus fines.
Disclaimer: I am not a lawyer. This is not legal nor securities-related advice. Do not buy or sell anything based on my Internet comments.
Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
#19If this is a grand jury subpoena, things could get ugly fast in the crypto space. Despite all talk of decentralization, the major exchanges pose a systemic risk.
How is this related? USDT is effectively a centralized currency. Bitfinex has always been shady. Are you saying that exchanges that accept USDT will get hit hard by this?
If USDT goes to zero, every exchange that trades it becomes immediately insolvent.
Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
#20Cryptocurrencies are in an interesting middle ground, from a regulator’s political perspective. They’re complicated and stand to harm mostly those who inflicted it on themselves. For an ambitious regulator looking forward to an administration’s nominating committee, Senate confirmation hearing or even campaign trail, that makes it unattractive relative to e.g. insider-trading hedge fund managers or Medicare fraudster…
Ponzi schemes also only harm those who inflict it on themselves.