Tether says its cryptocurrency is worth $2B–but its audit failed
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Re: Tether says its cryptocurrency is worth $2B–but its audit failed
#2> But those "frequent professional audits" have been slow in coming. The accounting firm Friedman LLP had been working on an audit of Tether and Bitfinex—a cryptocurrency exchange that is closely linked to Tether—since May. But last Saturday, Tether admitted to Coindesk that its relationship with Friedman had "dissolved."
In the normal business world it's a very bad sign when your auditor fires you as a customer.
> So it's possible Tether is keeping the identity of its bank secret to avoid attracting scrutiny from local regulators. This could also explain why some of Tether's funds are being held in the personal account of a Tether associate—perhaps the bank would have refused to open the account if it had known it was really for Tether.
When this finally blows up it's going to blow up big. How pervasive is parking money in tether in the crypto world? Is it bitfinex specific? I'm curious how bad the shock waves will be across the industry.
Re: Tether says its cryptocurrency is worth $2B–but its audit failed
#3> But those "frequent professional audits" have been slow in coming. The accounting firm Friedman LLP had been working on an audit of Tether and Bitfinex—a cryptocurrency exchange that is closely linked to Tether—since May. But last Saturday, Tether admitted to Coindesk that its relationship with Friedman had "dissolved." In the normal business world it's a very bad sign when your auditor fires you as a customer. > S…
I used it on bitterex.com
Re: Tether says its cryptocurrency is worth $2B–but its audit failed
#4> In the normal business world it's a very bad sign when your auditor fires you as a customer.
My wife is a professional auditor and she said that this would only happen if the client was pushing for the auditor to certify something that the auditor wasn't comfortable with. Of course she has no direct knowledge of this case. She said it was a really bad sign and she almost never sees this happen.
Re: Tether says its cryptocurrency is worth $2B–but its audit failed
#5> But those "frequent professional audits" have been slow in coming. The accounting firm Friedman LLP had been working on an audit of Tether and Bitfinex—a cryptocurrency exchange that is closely linked to Tether—since May. But last Saturday, Tether admitted to Coindesk that its relationship with Friedman had "dissolved." In the normal business world it's a very bad sign when your auditor fires you as a customer. > S…
A number of exchanges have USDT pairings. https://coinmarketcap.com/currencies/tether/#markets
Re: Tether says its cryptocurrency is worth $2B–but its audit failed
#6> In the normal business world it's a very bad sign when your auditor fires you as a customer. My wife is a professional auditor and she said that this would only happen if the client was pushing for the auditor to certify something that the auditor wasn't comfortable with. Of course she has no direct knowledge of this case. She said it was a really bad sign and she almost never sees this happen.
We also don't usually see a private company literally print money.
Re: Tether says its cryptocurrency is worth $2B–but its audit failed
#7tether is a slow moving train crash that is fascinating to watch
Re: Tether says its cryptocurrency is worth $2B–but its audit failed
#8> But those "frequent professional audits" have been slow in coming. The accounting firm Friedman LLP had been working on an audit of Tether and Bitfinex—a cryptocurrency exchange that is closely linked to Tether—since May. But last Saturday, Tether admitted to Coindesk that its relationship with Friedman had "dissolved." In the normal business world it's a very bad sign when your auditor fires you as a customer. > S…
It is not just parking money. When yoy find that the price of the asset you own has propped up price panic ensues.
Re: Tether says its cryptocurrency is worth $2B–but its audit failed
#9> But those "frequent professional audits" have been slow in coming. The accounting firm Friedman LLP had been working on an audit of Tether and Bitfinex—a cryptocurrency exchange that is closely linked to Tether—since May. But last Saturday, Tether admitted to Coindesk that its relationship with Friedman had "dissolved." In the normal business world it's a very bad sign when your auditor fires you as a customer. > S…
I mean... are people worried about Dogecoin blowing up? Or any other coin? There is basically no problem here. If you don't believe in USDT... don't buy it.
It's like saying government-issued currencies are going to "blow up" because Zimbabwe keeps printing fat stacks. Don't hold Zimbabwe dollars - problem solved!
Traders want something like USDT for the utility it provides. I don't think most traders care about the backing of USDT or it's potential redeemability for USD. I think most people enjoy the utility of a token that is always ~1USD. There are other tokens that promise to bring the same utility to crypto (DAI, etc). If USDT disappears (as NZDT just did, RIP Cryptopia's bank accounts), another stable coin will fill the void.
So even if Tether explodes, and it's actually been running with 0 financial backing this whole time - uh, well, tell me how that's different from any other cryptocurrency that has exploded and imploded in the last few years? It would seem to me that the healthiest thing for crypto right now is to figure out Tether's financial health (so people can decide if they want to safely use it) - but I don't think the marketplace will feel any "shockwaves" from a possible collapse.
Re: Tether says its cryptocurrency is worth $2B–but its audit failed
#10I think this is going to continue to be interesting to watch.
It seems likely that the tether company is a fraud, given the size of their January print runs. It seems likely that not only has tether been used by its owners as a way to prop up crypto-currency prices, but to acquire bitcoin and other coins under false pretences.
There's no proof either way, but the lack of audit is very, very fishy.
Further, I watched the USDT/USD market on kraken on Friday.All morning there was downward pressure, buy-walls of millions of dollars were eaten into and destroyed over the course of a few hours, until there was no bid volume at all down to about 90 cents.
All of a sudden, in the course of about two minutes, a rapid cascade of very small trades (a few tens to a few hundreds of dollars) propelled it back to ~98.5 cents. It looked really dodgy.