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Tether price manipulation

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Re: Tether price manipulation

#371

Post by xenihn »

WMX123 wrote: post #361
MystK wrote: post #352

Earlier quoted context omitted.

If BTC's price is manipulated anywhere, the market adjusts for it everywhere.

That makes no sense. Again, how can someone manipulate Bitcoin on Coinbase with Tether when Tether is NOT accepted?

Scenario:

Eth is $400 on Coinbase, Bitcoin is $12000 on Coinbase

Print 1,000,000 Tether

Buy $1,000,000 of Eth on an exchange that supports Tether

Sell $1,000,000 of Eth on Coinbase

Buy $900,000 (arbitrary post-sale amount from selling Eth) of Bitcoin on Coinbase

Another scenario:

Bitcoin is $12000 on Coinbase

Bitcoin is $12000 on another exchange that supports Tether

Print 1,000,000 Tether

Buy $1,000,000 of Bitcoin on the exchange that supports Tether

Bitcoin is now $12050 on another exchange

Coinbase price of BTC rises as arbitrage bots and manual traders purchase cheaper Bitcoin on Coinbase and sell it for profit on the other exchange until prices equalize

Re: Tether price manipulation

#372

Post by liuliu »

justicezyx wrote: post #366
lawtalkinghuman wrote: post #365

Earlier quoted context omitted.

> The killer app is decentralized, permissionless, open source, and censorship resistant network. That’s like saying the killer app of the internet is the internet. The web gives me access to information quicker and easier than going to a library or bookshop. Email and IM means I can communicate with people in other countries quicker and easier than I could by post. Crypto doesn’t change anything. A few drug dealers…

Digital gold is the kill app. That is enough to justify its market cap. For example, Chinese can use bit coin to exchange large amount of funds to other currency, although this can only be done in private because the official ban.

You cannot. There is no exchange from CNY to Bitcoin.

Re: Tether price manipulation

#373

Post by logifail »

marfusios wrote: post #265
shuckles wrote: post #254

Earlier quoted context omitted.

Most global payments are transactions, not cash transfers, and the transacting parties have banking relationships that make those transfers low cost and strictly superior to Bitcoin.

As a freelancer based in EU working on some US projects, I'm forced to pay 5.5% fee to PayPal or some fix fee to the banks (SWIFT payment). Plus conversion fee from USD to EUR (or my local currency). That's too high for just a simple thing as receiving money from different country. Really looking forward for that Strike Global.

> I'm forced to pay 5.5% fee [..] > Plus conversion fee from USD to EUR [...] > a simple thing as receiving money from different country

Moving money between currencies has never been easier, or cheaper. I would humbly suggest you're doing it wrong.

Re: Tether price manipulation

#374

Post by doggosphere »

viraptor wrote: post #349
doggosphere wrote: post #308

Earlier quoted context omitted.

However three years on, crypto still does not have a "killer app" and is 99.99% used for speculation. The killer app is decentralized, permissionless, open source, and censorship resistant network. Bitcoin's narrative has had to morph from "digital currency" to "digital gold". Gold morphed from worthless rocks in the the ground, to coins traded by traveling merchants, to stores of value that were eventually centraliz…

> The killer app is decentralized, permissionless, open source, and censorship resistant network. That's the "how" part, not the "what". What's the killer app implemented using that network? What do we do with it?

Lots of examples in this thread.

A replacement for gold is one.

Re: Tether price manipulation

#375

Post by jerry1979 »

rednerrus wrote: post #351
doggosphere wrote: post #308

Earlier quoted context omitted.

However three years on, crypto still does not have a "killer app" and is 99.99% used for speculation. The killer app is decentralized, permissionless, open source, and censorship resistant network. Bitcoin's narrative has had to morph from "digital currency" to "digital gold". Gold morphed from worthless rocks in the the ground, to coins traded by traveling merchants, to stores of value that were eventually centraliz…

The hurdle for bitcoin is finding a way for people to turn it into a currency they can use. This is where you end up with a centralized exchange layer built on top of it. I can make a $12,000,000 transaction for $.35 but if I actually want to get the money, I have to pay 2.5% to a legit exchange or take my chances on some janky ass exchange. Why not just transfer the money via ACH and pay the small fee and save mysel…

You can start by asking people to take bitcoin for various transactions. For example, my friends and I all use it settle debts between each other.

Re: Tether price manipulation

#376

Post by gruez »

rednerrus wrote: post #351
doggosphere wrote: post #308

Earlier quoted context omitted.

However three years on, crypto still does not have a "killer app" and is 99.99% used for speculation. The killer app is decentralized, permissionless, open source, and censorship resistant network. Bitcoin's narrative has had to morph from "digital currency" to "digital gold". Gold morphed from worthless rocks in the the ground, to coins traded by traveling merchants, to stores of value that were eventually centraliz…

The hurdle for bitcoin is finding a way for people to turn it into a currency they can use. This is where you end up with a centralized exchange layer built on top of it. I can make a $12,000,000 transaction for $.35 but if I actually want to get the money, I have to pay 2.5% to a legit exchange or take my chances on some janky ass exchange. Why not just transfer the money via ACH and pay the small fee and save mysel…

What kind of an exchange charges 2.5%?

Re: Tether price manipulation

#377

Post by cool_dude85 »

whimsicalism wrote: post #177
xur17 wrote: post #115

Earlier quoted context omitted.

https://tether.to/faqs/ > Unfortunately, Tether has decided to stop serving U.S. individual and corporate customers altogether. As of January 1, 2018, no issuance or redeeming services will be available to these users. Exceptions to these provisions may be made by Tether, in its sole discretion, for entities that are: Established or organized outside of the United States or its territorial or insular possessions; and…

So as source for the claim that you "can't redeem tether", you are linking to something that says you can redeem tether?

Tell you what: you give me $100, I'll give you back a cooldude coupon. I have sole discretion as to whether I'll redeem this coupon when you hand it back to me.

Question: Would you say you can redeem this coupon? It's possible I might decide to give you back your money, after all.

Re: Tether price manipulation

#378

Post by pionar »

doggosphere wrote: post #374
viraptor wrote: post #349

Earlier quoted context omitted.

> The killer app is decentralized, permissionless, open source, and censorship resistant network. That's the "how" part, not the "what". What's the killer app implemented using that network? What do we do with it?

Lots of examples in this thread. A replacement for gold is one.

> A replacement for gold is one.

Gold is relatively stable and has physical backing. BTC does not.

Re: Tether price manipulation

#379

Post by jerry1979 »

qeternity wrote: post #103
lukebuehler wrote: post #95

Earlier quoted context omitted.

I’ve been wondering if Tether is really a scam for a long time. In all these analyses, one key point is missing: arbitrage traders have to make up for the sell pressure on USDT when Tethers are being printed and sold for BTC. Can anyone show me how there is a plausible mechanism/scheme/conspiracy that keeps the USD/USDT exchange rate stable while a crazy amount of illegitimate Tethers are being printed? Edit: typo an…

I'm not sure what arbitrage you're referring to. But more importantly, nobody is selling these freshly printed USDT for USD...that's the whole point. They are selling USDT for BTC. 99% of the USD/USDT trading is fake/wash trading to give the illusion of volume.

If tether is functionally doing a fractional reserve scheme, then we should expect a run on the tether bank sooner or later.

Re: Tether price manipulation

#380

Post by Geee »

gruez wrote: post #136

>4) How the scam works: >Tether can print infinite amounts of (worthless) $USDT. >They then inject this into BTC, ETH, LTC, (and others) to cause prices to pump. >Notice how during the months they stopped printing Tether, the market moves sideways or drops significantly. >This graph also shows the extent to which USDT plays a role in Bitcoin's price action over the years. I don't get it. This doesn't really prove any…

Yes, and every exchange has 'money market' which means the cash reserves that hold user's deposits. Most exchanges use a simple database to hold these balances and there's no way to audit them. Every exchange can 'print' money in their database if they want. Tether is better because it offers some transparency into this side of the market.
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