11–20 of 54 posts
Oh so all of those who had kept money as usdt will have their money devalued. Nice Remember, the longer you stay the more money you can lose This will be fun to watch
The actual announcement was linked above. Any time before the cutoff Bitfinex will continue to support USDT:USD at parity, and all USD and EUR deposits will be denominated in the fiat currency, not the tether equivalent.
Oh so all of those who had kept money as usdt will have their money devalued. Nice Remember, the longer you stay the more money you can lose This will be fun to watch
The actual announcement was linked above. Any time before the cutoff Bitfinex will continue to support USDT:USD at parity, and all USD and EUR deposits will be denominated in the fiat currency, not the tether equivalent.
What does "support" mean? I thought it was notoriously difficult to convert Tether into hard currency.
> all USD and EUR deposits will be denominated in the fiat currency
Will previous deposits, which were held as Tether, be converted into hard currency? (Bitfinex has recently been having issues redeeming hard currency deposits [1].)
The cynic in me sees Bitfinex attempting to convert Tether, a secured redeemable obligation, into brokerage deposits, unsecured obligations in most jurisdictions.
[1] https://www.coindesk.com/for-bitfinex-users-dollar-withdrawa...
It's not like Bitfinex has ever allowed anyone to cash out their USDT for USD (despite claims to the contrary) so maybe this is just them coming clean about that fact? They've also removed (false) claims about being audited from their FAQs section[0] [0] https://tether.to/faqs/ vs https://web.archive.org/web/20180628141947/https://tether.to...
Bitfinex has had withdrawal problems and banking problems in the past, but to my knowledge the only recent problems have been around times when USD/USDT has disconnected, largely due to delays in Bitfinex's fiat withdrawal pipeline that have all since been resolved.
Earlier quoted context omitted.
The actual announcement was linked above. Any time before the cutoff Bitfinex will continue to support USDT:USD at parity, and all USD and EUR deposits will be denominated in the fiat currency, not the tether equivalent.
> Any time before the cutoff Bitfinex will continue to support USDT:USD at parity What does "support" mean? I thought it was notoriously difficult to convert Tether into hard currency. > all USD and EUR deposits will be denominated in the fiat currency Will previous deposits, which were held as Tether, be converted into hard currency? (Bitfinex has recently been having issues redeeming hard currency deposits [1].) Th…
What I mean by "support" is that before the cutoff (at 14:30 UTC on 2018-11-27, four and a half hours from now) any USDT deposits will be credited to the USD account balance of the user who made the deposit, as it has in the past.
Can someone explain why this is important?
This promise is a lie. This announcement walks back the lie.
This is very important for the cryptocurrency ecosystem, because Bitfinex is a large exchange, liquidity provider, counterparty, and (I strongly suspect) lender. If they are factually insolvent or fail in a bank run, that is a Very Big Deal, at least insofar as anyone cares about cryptocurrency.
Can someone explain why this is important?
They were subpoenaed, but so far no charges have been brought against them. It also looks like they recently changed banks, with Tether now using Deltec [1][2], a 72-year old Bahamas-based institution registered with the Financial Crimes Enforcement Network of the US Department of the Treasury.
As far as that goes, I think it's a good thing that Tether has established a relationship with a reputable institution. It also shows that they are committed to anti-money laundering.
As far as fees go, it looks like unless you've got more than $1 million in USDT, you're looking at 0.4%-1% withdrawal fees. Meh. I mean, doesn't sound terrible...and honestly, it seems less and less likely now that USDT will crash the market (not that it needs any help with that at the moment).
[1] https://tether.to/tether-banking-relationship-announced/ [2] https://www.deltecbank.com/
Earlier quoted context omitted.
> Any time before the cutoff Bitfinex will continue to support USDT:USD at parity What does "support" mean? I thought it was notoriously difficult to convert Tether into hard currency. > all USD and EUR deposits will be denominated in the fiat currency Will previous deposits, which were held as Tether, be converted into hard currency? (Bitfinex has recently been having issues redeeming hard currency deposits [1].) Th…
I don't know what you mean by this -- depositing USDT into Bitfinex has always immediately credited your USD balance. Until this announcement, they have always treated USDT as simply a method for depositing USD, with no explicit conversion necessary. What I mean by "support" is that before the cutoff (at 14:30 UTC on 2018-11-27, four and a half hours from now) any USDT deposits will be credited to the USD account bal…
This doesn't mean anything if that U.S. dollar balance cannot be redeemed for actual U.S. dollars. Saying "I have 1 USDT" or "I have 1 U.S. dollar on deposit at Bitfinex" is roughly equivalent--both depend on Bitfinex honoring its end of the deal.
Oh so all of those who had kept money as usdt will have their money devalued. Nice Remember, the longer you stay the more money you can lose This will be fun to watch
Unless they've already changed the exchange rate, it looks like they cashed out everyone's Tether balances to fiat? Any Tether deposits initiated before 14:30:00 UTC on the 27th of November will be credited to the user's fiat wallet balances
"Cashing out" means receiving hard currency. It appears Bitfinex plans on converting Tether balances into Bitfinex brokerage balances. This still depends on Bitfinex paying out dollars for its obligations, regardless of whether they're cryptocurrency Tethers or broker balance entries in a spreadsheet.
https://tether.to/tether-reopens-account-verification-and-di...
> This update allows the immediate withdrawal of Tether to fiat (1:1), with the ability to acquire coming soon.
So Tether still backs the USDT 1:1 by fiat while Bitfinex just becomes another trading market. Other exchanges already have USDT markets that change in value.
This event is not the "de-tethering of Tether." It is returning the responsibility of backing USDT to Tether.
Tether just opened up a platform for withdrawing fiat USD directly from them: https://tether.to/tether-reopens-account-verification-and-di... > This update allows the immediate withdrawal of Tether to fiat (1:1), with the ability to acquire coming soon. So Tether still backs the USDT 1:1 by fiat while Bitfinex just becomes another trading market. Other exchanges already have USDT markets that change in value. This ev…
We don't have any evidence Tether has hard currency backing its Tether. We do know Tether and Bitfinex are under investigation in multiple jurisdictions, and that brokerage deposits are less protected than obligations marketed as being freely redeemable or secured (as Tether was). At the end of the day, Bitfinex and Tether are intrinsically and ambiguously linked, a combination that does not inspire confidence.