Bitfinex will no longer treat Tether as 1:1 conversion

Post by chrisco255 » Tue, Nov 27, 2018, 10:14 PM UTC

mhluongo wrote: post #8

gwbas1c wrote: post #5

So basically, any slight deviation from 1:1 is similar to a transaction fee?

No- the market will buy and sell Tether at the market-discovered price- which means it's no longer centrally "pegged" by Bitfinex. This could be because they want to better take advantage of the difference in price themselves, knowing that their books are good and that the token is backed- or, following the narrative, it's because the token isn't 1:1 backed. Either way, this further erodes trust in Tether

Post by JumpCrisscross » Tue, Nov 27, 2018, 11:05 PM UTC

chrisco255 wrote: post #21

mhluongo wrote: post #8

Earlier quoted context omitted.

No- the market will buy and sell Tether at the market-discovered price- which means it's no longer centrally "pegged" by Bitfinex. This could be because they want to better take advantage of the difference in price themselves, knowing that their books are good and that the token is backed- or, following the narrative, it's because the token isn't 1:1 backed. Either way, this further erodes trust in Tether

No they're making easier to withdraw USDT to fiat, minus a 0.4%-1% fee. All indications are that they do in fact have $2B in cash on hand to back the USDT in circulation: https://tether.to/wp-content/uploads/2018/11/Tether-Letter.p...

Post by jpmattia » Tue, Nov 27, 2018, 11:17 PM UTC

JumpCrisscross wrote: post #20

deweller wrote: post #19

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…

> Tether still backs the USDT 1:1 by fiat while Bitfinex just becomes another trading market 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 ar…

Post by JumpCrisscross » Tue, Nov 27, 2018, 11:21 PM UTC

jpmattia wrote: post #25

JumpCrisscross wrote: post #20

Earlier quoted context omitted.

> Tether still backs the USDT 1:1 by fiat while Bitfinex just becomes another trading market 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 ar…

> We don't have any evidence Tether has hard currency backing its Tether. We have some evidence: The CFTC subpoena was about a year ago, and it is hard to imagine that they would not have 1. Subpoenaed bank statements to support the backing, and 2. Let tether continue operation if the support was lacking. So it's possible that the CFTC was snookered somehow, but they're not known for being patsies when it comes to ob…

Post by wmf » Tue, Nov 27, 2018, 11:23 PM UTC

carrja99 wrote: post #22

Honest question... did tether ever allow people to create accounts? As far as I can tell he only way to buy tether has been via exchanges... even at this time last year their "create a new account" form was disabled.