Tether was questionable since day one. They never really substantiated their claim of full-backing through a real audit of their currency reserves. Tether was the successor to Realcoin which was backed by Brock Pierce. Brock Pierce is co-founder of EOS which had the 4 billion dollar ICO.
Crypto Market Roiled by New Allegations Against Tether, Bitfinex
211–220 of 317 posts
Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#212Earlier quoted context omitted.
> "The New York Attorney General’s court filings were written in bad faith and are riddled with false assertions, including as to a purported $850 million “loss” at Crypto Capital. On the contrary, we have been informed that these Crypto Capital amounts are not lost but have been, in fact, seized and safeguarded. We are and have been actively working to exercise our rights and remedies and get those funds released. S…
So they admit that the money was once lost, just they recovered part of it? Of course, they forgot to disclose.
No. They claim the money was seized from a "partner" (Crypto Capital) by various governments (~$400 million to Poland, etc), and they are trying to get it back.
Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#213Earlier quoted context omitted.
But HODLers don't really care about tether, do they? Isn't tether mainly used for traders who want to temporarily move out of crypto and use tether for that?
It's been suggested that a large percentage of the crypto market cap is based on tethers which have been used to prop up prices but also used to hedge against falling BTC prices. Essentially, bitfinex prints tether whenever the price of BTC drops, and in the meantime, people use these printed tethers to hedge against BTC (and buy back in when the price trends upward again). So there are many iterations of compounded…
I've heard that theory, but I can't say I understand it. Let's say USDT goes to 0 instantly. All traders lose their parked money. I can see a crash from panic and from people recouping their lost safe money, but what else does it have to do with with cryptocurrencies?
Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#214Earlier quoted context omitted.
So they admit that the money was once lost, just they recovered part of it? Of course, they forgot to disclose.
No. They claim the money was seized from a "partner" (Crypto Capital) by various governments (~$400 million to Poland, etc), and they are trying to get it back.
And why wasn't that disclosed to customers prior to today?
Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#215Earlier quoted context omitted.
Bad news is that so many exchanges use it as it is such a useful instrument for users who wish to get out of crypto temporarily when their exchanges don't support fiat trading. https://coinmarketcap.com/currencies/tether/#markets People will use it until it gets burnt and crashed.
Tether is currently being traded around 99 cents. The market, so far, has assigned a 1% devaluation, despite this report showing that they basically lost $850M. From what I can see on Coinmarketcap, there is $2.83 Billion Tether in circulation. So it would appear Tether has lost at least 30% of its assets (cash converted to Crypto Capital debt, which = toilet paper). I am shocked that people aren't taking this more s…
> Tether is currently being traded around 99 cents
Tether's "market price" is manipulated. People cannot exchange tether for dollars without jumping to another exchange.
Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#216Earlier quoted context omitted.
No. They claim the money was seized from a "partner" (Crypto Capital) by various governments (~$400 million to Poland, etc), and they are trying to get it back.
And why wasn't that disclosed to customers prior to today?
That is between them and their "customers", I guess.
Bitfinex has been shady for a long time and tether from its beginning. So, good luck to them. But that is nothing new.
Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#217I think the news was out for some time and only now the rumor started to confirm. Tether is trading at exactly $1/$1 on Kraken. It had touched $0.85/$1 on October 2018 though. It was discounted for the last quarter of the last year. The discount lasted for several months suggesting lack of liquidity and possibly lack of funds. The Tether discount suddenly disappeared. And suddenly a discount/premium appeared on Bitfi…
If the discount was because they lost funds, that was insider trading. That was not public information. And of the bad kind.
Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#218Earlier quoted context omitted.
Tether’s worthless if it’s not worth a dollar. You’ll either get 100% or 0%.
You may remember the implosion of mtgox, and people buying mtgox ‘dollars’ at a discount. There’s always a greater fool, apparently.
If you bought btc at a discount at mtgox you are mega rich now.
Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#219Earlier quoted context omitted.
People have been yelling that Tether is a ponzi fraud since it launched in 2015. And yet it still trades 1:1 to USD today, after the court filing was released. So is there some magic force that keeps the fraud running, and prevents market participants from cashing out their Tether in the mother of all bank runs? If you hold Tether why wouldn't you sell? Or is there more to the story than just "Tether is an obvious fr…
I don't understand cryptocurrency markets at all, but, could there be something where the only people participating in the USDT market are those who are at least somewhat confident that USDT is what it claims to be and therefore are pricing it at $1? What do you get out of participating in the market if you expect Tether to be fraudulent? You'd personally price it at zero, then, right? Can you profitably short it, or…
> if you hold USDT and want to sell it for cheap, who is going to buy it for cheap-but-nonzero?
The market price for one Tether is currently $0.9984 because traders are buying at that price.
So if anyone holds Tethers and believes there's greater than 1% probability that it goes to zero, the rational trade is to sell.
The fact that the price holds at parity tells me that Tether is not an obvious fraud.
Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#220Earlier quoted context omitted.
Tether is currently being traded around 99 cents. The market, so far, has assigned a 1% devaluation, despite this report showing that they basically lost $850M. From what I can see on Coinmarketcap, there is $2.83 Billion Tether in circulation. So it would appear Tether has lost at least 30% of its assets (cash converted to Crypto Capital debt, which = toilet paper). I am shocked that people aren't taking this more s…
> Tether is currently being traded around 99 cents Tether's "market price" is manipulated. People cannot exchange tether for dollars without jumping to another exchange.
Kraken, a US based exchange trades tethers for dollars. This is plainly incorrect.