271–280 of 317 posts
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> 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. https://trade.kraken.com/markets/kraken/usdt/usd
I 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…
You are holding counterfeit money and hoping you can offload it before the shit hits the fan. When everyone starts running for the exit, you may not be in the front of the pack.
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1% fluctuation is normal. Tethering is stabilized through arbitrage.
The only way Tether can be stablized through "arbitrage" is if there is a risk-free way to trade 1 Tether for 1 USD. For the average user, there is no direct way to cash out your Tether for 1:1 USD. I imagine that big clients do have the ability to trade Tether for USD. Because of that, they will buy up discounted Tethers on exchanges and redeem them to Tether Company for 1 USD each. HOWEVER, this clearly relies on T…
Even without stat, all you have to do is go USDT USD BTC or similar and take the arb across multiple pairs. It's a game of musical chairs until someone with enough cash decides to break the peg
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Which does make it rather curious that the music's kept playing, so far. Is "common knowledge" that it's probably a complete fraud (like this filing should give) required to pop the tether bubble? Or will even this not be enough?
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…
This article goes to great alarmist lengths, past the point of being deceiving. Just the very first line: > One of the world’s most widely traded virtual currencies faces renewed doubts about its stability [...] Tether is nothing in terms of crypto currency penetration. It does not even have a percent of daily trading. Then a few paragraphs down: > [...] within an hour of the attorney general’s statement and Tether s…
Looking at coinmarket cap just now it's No 2 by 24hr trading volume. Bitcoin $18bn, Tether $16.5bn, Ethereum $8bn, all others less than 4.
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Not to mention the insurance for that $0.90, should those long-term assets go caput.
And if the value of all long-term assets goes down by 50%, your 50% payout will buy just as much as it did before.
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If they lost $850m they may have $1150m or so left in cash and can use that to support the tether price.
So anyone currently holding USDT is playing a ~$1B game of musical chairs?
Given the shadiness of the operators they might not even run through all the cash but when half is gone steal the other half and disappear. Or something along those lines.
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This quite an ignorant comment. I've been working with Blockchain tech (Crypto by extension) for a while now and there's a lot of experimenting, genuine projects being built right now. A lot of smart people are in this space building solutions. Major companies like Samsung / Facebook have teams working on PoCs. Unfair to imply that everyone in Crypto is selling snake oil.
> Unfair to imply that everyone in Crypto is selling snake oil. So, who isn't? Look throughout the blockchain ecosystem and all you will see are scams, illegal activity and get rich quick fools. I have personally yet to see a use of blockchain tech for useful legal purposes. Yes, you will see some companies "announce" that they are "investigating" blockchain or whatnot to get some free PR, but you don't ever see them…
It is hard finding legal and useful. There's a lot of legal but not that great like gambling.
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> the entire cryptocurrency economy relies on tethers being valued at par, given that they're how billions of dollars of liquidity are denominated. this doesn't make any sense unless tether is a required intermediate step to liquidating cryptocurrency, which it's not.
That’s one of the problems. Liquidating “crypto to fiat” is not that easy.
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You mean Kraken? There are many OTC lending markets that allow for tether shorting.
Seems like counterparty risk would make this a bad trade; if Tether collapses, the whole system is likely to follow.