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Tether price manipulation

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Re: Tether price manipulation

#381

Post by tether-fork »

Why hasn't anyone forked tether? What happened to the tether issued on bitcoin cash blockchain through omni after the fork of bitcoin?

A tether fork can be 'backed by tether.' The issuer of forked tether would accept 1 tether for one new tether fork. this issuer immediately sells tether to get the risk off their books through an exchange while liquidity exists. When redeeming the tether fork ppl can either get back tether or ~ 1 us dollar. So you effectively have front running the inevitable tether bank run. Sure they have to put trust in this new tether fork. You can steal tether's customers that are worried and since the feds seem to have a blind eye towards a company that isn't a bank and is most likely practicing fractional reserve lending, you let the free market 'regulate' tether.

Re: Tether price manipulation

#382

Post by gamblor956 »

damon_c wrote: post #331
vorpalhex wrote: post #320

Earlier quoted context omitted.

> The killer app is decentralized, permissionless, open source, and censorship resistant network. Yes, but what can I do with that other than toot/tweet/twit at other people and buy LSD tabs?

Here are a few projects that use Ethereum to do things that have nothing to do with acquiring chemicals or crypto asset speculation. https://www.nucypher.com https://filecoin.io https://alice.si https://www.augur.net

I can do all that right now without inserting a power-wasting cryptocoin layer.

Re: Tether price manipulation

#383

Post by gruez »

rednerrus wrote: post #360
gruez wrote: post #295

Earlier quoted context omitted.

>USDT is only liquid BECAUSE there is no redemption mechanism (or at least not one that has ever been demonstrated). For the bystanders here, I've made a reply to a comment similar to this in sibling thread: https://news.ycombinator.com/item?id=25686965

If there is a USD to USDT match, where are the audits?

Is that relevant? I'm not arguing against the claims that tether is shady, I'm only arguing against the outrageous claims that you can't convert USDT back to USD that some tether opponents claim.

Re: Tether price manipulation

#384

Post by qeternity »

jrh206 wrote: post #332
qeternity wrote: post #298

Earlier quoted context omitted.

No, they don't. There doesn't need to be an arbitrage. If you have 10 USDT and I give you 9.90 USD for that...nothing else needs to happen. But the degree that this is happening pales massively in comparison to the billions that are sat on exchanges and recycled. Tether would be the first legitimate billion dollar operation where people have to say things like "but you didn't hear it from me".

> No, they don't. There doesn't need to be an arbitrage. If you have 10 USDT and I give you 9.90 USD for that...nothing else needs to happen. I'm not an expert, so I might be wrong (seriously, not sarcastically). I _think_ this is technically arbitrage even though you never complete the loop.

I’m a hedge fund trader. It’s not an arbitrage. It’s the furthest thing from an arbitrage.

Re: Tether price manipulation

#385

Post by gamblor956 »

doggosphere wrote: post #334
corrys wrote: post #329

Earlier quoted context omitted.

Bitcoins have been confiscated by many governments. A quick Google search reveals many instances of that.

Lets clarify semantics. Can the government seize Bitcoin directly? No. Can the government seize your bank account directly? Yes. Can they threaten you with jail if you don't hand over your Bitcoin? Yes

Can the government seize Bitcoin directly? No.

Yes, it can. The U.S. government has in fact seized Bitcoin directly and sold it at auction several times. It is arguably the single largest non-exchange seller of Bitcoin in Bitcoin's history.

Re: Tether price manipulation

#386

Post by pearjuice »

I'm no expert but wouldn't it make sense that Tether has to mint new USDT pegged to the price of BTC? If BTC price increases, regardless of what reason, the next buyer has to somehow have more USDT than there previously was in the system.

- B buys 1USDT for 1USD

- BTC sale at 1USDT from A to B

- person B now lists their BTC for 3USDT

- if person C now wants to buy this BTC for 3 USD, there has to be an additional 3 USDT minted

Given new influx of money keeps happening to buy BTC, more and more USDT needs to be printed. Meaning, extra USDT is printed BEFORE the price increases. Because it's required to buy. Doesn't explain why it's seldom burned. Nobody ever cashes out?

Re: Tether price manipulation

#387

Post by shuntress »

nebulous1 wrote: post #245
shuntress wrote: post #69

Earlier quoted context omitted.

This makes zero sense. Why not just use USD? The entire point of Tether seems to be that it is always valued to be exactly 1:1 with USD. And that seems to somehow convince people that entities who cannot obtain a loan of USD can obtain a loan of Tether?

Some exchanges have no traditional banking ties at all, so you have to send them some for of crypto in order to use them. It's also easier and quicker to move tether from one exchange to another than it is to receive a USD transfer and resend it to another, and that's ignoring regulatory issues.

This does nothing to explain the purpose of Tether.

If Exchange A has no "traditional banking ties" but is where I want to trade so I need to buy crypto through Exchange B first in order to trade that crypto on Exchange A why would I buy Tether instead of BTC through Exchange B?

Re: Tether price manipulation

#388

Post by justicezyx »

liuliu wrote: post #372
justicezyx wrote: post #366

Earlier quoted context omitted.

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.

Come on, it was banned, but there is plenty of underground channel... Why is that even needed to be mentioned...

Maybe I should be more clear in the OP.

Re: Tether price manipulation

#389

Post by nicky0 »

paulgb wrote: post #231
nicky0 wrote: post #223

Earlier quoted context omitted.

Both fiat currency and Bitcoin are backed by the same thing: mass belief. An incredibly powerful thing.

Yep, but my point is that one is mass belief that the US government will continue wanting USD, the other is a mass belief that other people will continue wanting BTC. Both could be right, both could be wrong, but they are not the same proposition.

Don't forget that the US gov itself is also propped up by mass belief. Its authority rests in the people.

Now you might say "actually its authority rests on people with guns", but that's only to the extent that the people with the guns believe in the governments's authority to tell them who to point them at.

Underneath all is belief and sentiment.

Re: Tether price manipulation

#390

Post by WMX123 »

xenihn wrote: post #371
WMX123 wrote: post #361

Earlier quoted context omitted.

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 o…

I still don't see that artificially inflating coinbase bitcoin. plus only bitfinance would be able to print/create tether. also, there's no evidence that companies what you claim they could do.
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