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Tether price manipulation

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Re: Tether price manipulation

#451

Post by dmichulke »

therein wrote: post #261
beaned wrote: post #226

Earlier quoted context omitted.

How do you square this with the observation that other fiat-backed stablecoins like USDC, which are obviously legitimate, are also printing massively? It would seem to me that if transparent stablecoins with utility are going up, the simplest explanation for tether going up is that it serves the same role for people who have either become accustomed to it from its earlier availability, or have it as their only option…

Except for timing time after time. Most rallies have a corresponding Tether print right prior to them.

Sounds like a winning trading strategy to me then.

Re: Tether price manipulation

#452

Post by griffinheart »

tim333 wrote: post #82
vegannet wrote: post #71

Earlier quoted context omitted.

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.

When is tether org involved in this?

From your example the only thing that happened is that now you hold x euros and Kraken holds x amount of USDT.

Unless Kraken goes to Tether org and asks "hey I got these USDTs, please give me the USD" no redemption has occurred.

That some people can in effect transact USDT for fiat via other mechanisms (like your example above) says nothing about Tether org backing or reserves.

Until you go to Tether org with your USDT's and ask them for USD you won't know if they have the reserves.

Re: Tether price manipulation

#453

Post by tylerhou »

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.

It's arbitrage if you can close the loop with little or no risk. Preferably immediately if you already have a buyer lined up. Otherwise, you incur more risk -- you might be caught holding the bag when the music stops.

Re: Tether price manipulation

#454

Post by singularity2001 »

gruez wrote: post #300
sjs382 wrote: post #252

Earlier quoted context omitted.

> For anyone who disagrees with the above - please show me market where I can go sell my USDT directly for USD. Genuinely curious, as someone who has never used Binance nor USDT: Why is the "directly" part here significant? If I can USDT (Binance) -> USD (Binance) -> BTC (Binance) -> BTC (Coinbase) -> USD (Coinbase) -> USD (My Bank), then whats the difference other than a few extra steps?

There are easier paths, such as: USDT -> kraken[1] -> USD -> your bank or even USDT -> bitfinex[2] -> your bank [1] https://trade.kraken.com/charts/KRAKEN:USDT-USD [2] yes they do allow fiat withdraws https://support.bitfinex.com/hc/en-us/articles/213919309-Fia...

nice in theory but practically if you try to withdraw from kraken you often get a plethora of errors, including "this function is currently disabled". this happened during the last run and this happened this week.

Re: Tether price manipulation

#455

Post by singularity2001 »

marfusios wrote: post #248
qeternity wrote: post #15

The 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…

That's gonna be the killer app, low-cost global payments, finally we can accept international payments from non-crypto customers without ridiculous SWIFT or PayPal fees... https://jimmymow.medium.com/announcing-strike-global-2392b90...

kraken significantly increased their transaction fees so there goes that dream

Re: Tether price manipulation

#456

Post by quickthrower2 »

coinward wrote: post #255

How about USD price manipulation? How much of the USD being created by the FED is back by their reserves?... Is this scam sustainable? What effect would a Fed collapse have on Bitcoin's price? I'm going to wager that the Fed scam has a far larger impact on the USD price of BTC than this article's claims on tether fraud or collapse and its not even close.

Tether’s only reason for existing is trading for crypto so that’s not a fair comparison.

Re: Tether price manipulation

#457

Post by incrudible »

doggosphere wrote: post #449
incrudible wrote: post #434

Earlier quoted context omitted.

> Securing external value to people is not a goal or responsibility of Bitcoin. Fair enough, but then your comparison to physical gold is meaningless. Physical gold is generally used to store value, not to transfer it. For that purpose, you have paper money (or paper gold such as futures) which is cheap to transfer.

Gold has had thousands of years to equalize in value. Bitcoin is about 12 years old.

Alright, then maybe in a hundred years your gold comparison will be meaningful, but not today.

Re: Tether price manipulation

#458

Post by rglullis »

xur17 wrote: post #184
whimsicalism wrote: post #176

Earlier quoted context omitted.

Coinbase offers DAI, plus you can exchange DAI for any ERC20 token on a dex.

Right, and coinbase offers USDC as well. The problem is the long tail of exchanges overseas that only offer USDT.

But why should you care about these fringe exchanges when (a) you know they are not trustworthy and (b) there are decentralized alternatives where you can trade pretty much any token you'd like to hold?

If the problem that these exchanges only offer $LOCAL_CURRENCY USDT as on-ramp, what's stopping you to:

   1. make the on-ramp via USDT
   2. buy ETH
   3. withdraw to your own wallet
   4. Trade on Uniswap/Curve/1inch/Loopring/Stakenet to anything you want; (Wrapped) BTC, USDC, DAI, any ERC20...
It's not that complicated, it eliminates your risk of holding USDT, these shady exchanges can still operate (at their own risk, not the users), it makes it super easy to identify exchanges with liquidity problems (the ones that get any excuse to not let you withdraw or make the fee way to high will surely indicate an issue with their liquidity) and - most importantly - reduces the amount of USDT in circulation.

What I am missing?

Re: Tether price manipulation

#460

Post by TimJRobinson »

Born_Again wrote: post #181
shuntress wrote: post #56

Earlier quoted context omitted.

>Bitcoin's narrative has had to morph from "digital currency" to "digital gold" The narrative around bitcoin has always been "It is digital currency. It works like gold". Hence the notion of "mining" . EDIT: downvote me if you want but you are flat wrong Section 6 in the bitcoin whitepaper explicitly likens bitcoin to gold [0] > The steady addition of a constant of amount of new coins is analogous to gold miners expe…

>>Bitcoin's narrative has had to morph from "digital currency" to "digital gold" I wholeheartedly agree with this. Let's look at some Reddit /r/bitcoin posts in January 2014: https://redditsearch.io/?term=&dataviz=false&aggs=false&subr... People were discussing bitcoin being used as a digital currency. There was talk of bitcoin being accepted on Overstock.com, TigerDirect, and using bitcoin apps on phones as a digita…

People were overly enthusiastic about it intially, but soon realized almost no one wants to use a slower, riskier, and now more expensive payment option. Bitcoin is good for merchants but terrible for buyers.

Bitcoin lightning could change this, instant transactions with almost no fees, but it's still in early days.

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