Let's say you believe that Tether is a complete fraud and will crash the market at some point. How do you take advantage of this? I'm not myself trading, but I would be interested to know how that kind of short works in practice. From what I understand, that's what bitcoin futures can be used for?
Tether price manipulation
81–90 of 490 posts
Re: Tether price manipulation
#82Earlier quoted context omitted.
The thing I don't understand about the "Illegit" method is that it relies on people accepting USDT for BTC and then not cashing them out to real USD. Because if the company is printing USDT it wouldn't have the cash to pay the people trying to cash out USDT. So to allow this to happen you would need a people to be holding a huge amount of USDT.
You can’t redeem Tether — that’s a core part of the fraud, they have “banking issues” and had them for years. You can sell it on an exchange but the Tether organisation have prevented any redemption of USD from USDT for years. Anybody turning USDT into USD is selling their USDT.
Though when you sell your USDT for euro or whatever on Kraken say, the tether org must step in and buy to keep the price at US$1. So they effectively redem if not directly.
Re: Tether price manipulation
#83Earlier quoted context omitted.
They are better regulated and therefore less risky than Tether, which raises the interesting question, Why is USDC circulation only 20% of Tethers...
Have you considered the fact that "better regulated" might not be an advantage for someone using it as a capital flight tool? A big value proposition of Tether as an on-ramp is its discretion.
Abolutely I have, I also think that regulators in places like the USA are very likely to crack down on any company providing that kind of service :)
The most likely threat to Tether as a currency (IMO), is that one or more large countries outlaws its use, and/or decides to prosecute its owners...
Re: Tether price manipulation
#84I agree that a Tether reckoning is coming, but point #10 of that thread is the most important: it could be weeks, months or _years_ before it's fully corrected, so be super super super careful about using Tether as a reason to short Bitcoin... "The market can remain irrational longer than you can remain solvent"
It's even worse than that. Shorting TSLA is dangerous because of the above. But it's mitigated by people purchasing shares with real fiat. They have a natural incentive to not be absurd: whether or not $800/share is absurd is a matter of opinion...but everyone would agree that $1m/share is absurd. Tether has no such limitation. All the exchanges are complicit in this, wash trading is rampant, and there's an de facto…
Do you know if the public will actually find out any info on Jan 15th, or will that all be private, sealed documents? (I'm a bit lost at how that process is going to work)
Re: Tether price manipulation
#85The problem is that in the early days of @Bitfinex'ed this was all a bit of a sideshow because there was genuinely large interest from retail and the outcome of crypto was far less certain. However three years on, crypto still does not have a "killer app" and is 99.99% used for speculation. Bitcoin's narrative has had to morph from "digital currency" to "digital gold". But in the depths of the March panic, Tether jum…
1 BTC will still be 1 BTC after the Tether scam and scammers are all history.
And twenty-five years on, 1 Beanie Baby = 1 Beanie Baby.
Re: Tether price manipulation
#86I agree that a Tether reckoning is coming, but point #10 of that thread is the most important: it could be weeks, months or _years_ before it's fully corrected, so be super super super careful about using Tether as a reason to short Bitcoin... "The market can remain irrational longer than you can remain solvent"
It's even worse than that. Shorting TSLA is dangerous because of the above. But it's mitigated by people purchasing shares with real fiat. They have a natural incentive to not be absurd: whether or not $800/share is absurd is a matter of opinion...but everyone would agree that $1m/share is absurd. Tether has no such limitation. All the exchanges are complicit in this, wash trading is rampant, and there's an de facto…
Wait what’s the January 15th date?
Re: Tether price manipulation
#87Earlier quoted context omitted.
It's even worse than that. Shorting TSLA is dangerous because of the above. But it's mitigated by people purchasing shares with real fiat. They have a natural incentive to not be absurd: whether or not $800/share is absurd is a matter of opinion...but everyone would agree that $1m/share is absurd. Tether has no such limitation. All the exchanges are complicit in this, wash trading is rampant, and there's an de facto…
Do you know if the public will actually find out any info on Jan 15th, or will that all be private, sealed documents? (I'm a bit lost at how that process is going to work)
IANAL and don't have any real understanding of this process.
Re: Tether price manipulation
#88Earlier quoted context omitted.
This is true. It's also the tremendous irony of bitcoin evangelists narrative that fiat is worthless yet constantly touting every ATH (which is priced in that supposedly worthless fiat). Who cares what BTCUSD is if USD worthless? And then you realize that this is pure speculation and the most ardent supporters are just praying for the greater fool theory to rain good fortune on them. You need look no further than Coi…
> You need look no further than Coinbase, supposed beacon of our crypto future, IPO'ing and raising money in...that worthless green piece of paper known as the US Dollar. is it possible to do an ipo in crypto?
...you mean like on one of the many many crypto exchanges?
An ICO is just an IPO by a different name. There are also crypto stock exchanges.
But more importantly, even if it weren't possible, why would they ever sell their shares for worthless legacy money? Unless...
Re: Tether price manipulation
#89Let's say you believe that Tether is a complete fraud and will crash the market at some point. How do you take advantage of this? I'm not myself trading, but I would be interested to know how that kind of short works in practice. From what I understand, that's what bitcoin futures can be used for?
Cboe ended their bitcoin futures. As such there’s no way to bet on a bitcoin collapse that I know of, in a less risky options-like way.
Shorts (if they exist) would be extremely risky, as you owe more if bitcoin rises.
Re: Tether price manipulation
#90Earlier quoted context omitted.
It's even worse than that. Shorting TSLA is dangerous because of the above. But it's mitigated by people purchasing shares with real fiat. They have a natural incentive to not be absurd: whether or not $800/share is absurd is a matter of opinion...but everyone would agree that $1m/share is absurd. Tether has no such limitation. All the exchanges are complicit in this, wash trading is rampant, and there's an de facto…
Wait what’s the January 15th date?
Jan 15 is the next court date where apparently iFinex will have provided all the required documents to the NYAG.
If the NYAG doesn't like what's in there I guess it may go badly.
The courts document list is https://iapps.courts.state.ny.us/nyscef/DocumentList?docketI...
If you look at the latest one, it mentions the 15th.