Does this mean that Tether is not buyable by NYers in Coinbase and Gemini?
Gemini offered/offers USDT?
Bitfinex and Tether required to end all trading activity with New Yorkers
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Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#72Have no idea why ycombinator is so salty towards anything crypto. Yes, tether was wrong when they said USDT was backed by “US Dollars”. But, the conclusion is USDT is backed by something, the likes of which is probably a fractional reserve. Case is resolved, with Tether admitting no fault.
"Backed by something"! It sounds so reassuring when you phrase it that way.
Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#73Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#74It appears from the link in the settlement agreement: https://ag.ny.gov/sites/default/files/2021.02.17_-_settlemen... Tether wasn’t backed at all times. The argument was that this happened due to asset seizures in Poland and Portugal in 2017-2018. https://www.theblockcrypto.com/post/95207/bitfinex-tether-ne... Seems to me they couldn’t prove malicious intent, so they suggested they stop trading. Frankly this seems a…
> Sure, tether wasn’t backed at all times (probably is now),
Even Tether admitted that they weren’t backed by funds, and that was before they printed most of their current supply: https://www.coindesk.com/tether-lawyer-confirms-stablecoin-7...
I don’t understand why anyone would be in a rush to take them at their word when every new piece of evidence demonstrates that Tether’s operators are not interested in behaving honestly.
> Also banks do this all the time, every time they issue a loan for instance. The bank only keeps 10-30% collateral on your home.
Fractional reserve banking doesn’t mean banks can simply print more money than they have on the books.
Regardless, if a bank loses funds due to fraud or government intervention or whatever, they can’t simply continue pretending they had the money all along.
I don’t understand the desire to pretend that what Tether is doing is normal or good for the crypto community. It’s not.
Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#75Looks like Tether is taking the settlement as an agreement of no wrong doing and that no tether coins were issued without backing.
https://tether.to/tether-and-bitfinex-reach-settlement-with-...
Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#76Here we are again, with a steady stream of nocoiner comments validating their long held positions while bitcoin slowly marches ahead year after year.
Madoff’s fraud took decades to unravel, too. You’d have looked silly declining to invest there, until the collapse.
Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#77So there are 34B outstanding USDT right now. In the documents I see talk about some 850M USD is missing. Are all the other ≈ 33B USDT backed? Will we only know that on the first report they obliged to do each quarter? Will those reports be made public? I'm confused what to make of this.
The most damning detail I've seen comes from US treasury TIC reports, which fail to reveal matching bond ownership inflow to the country that is the reputed host of Tether's segregated bank account.
It is possible that Tether holds funds in some kind of strange non-interest-bearing account, but that seems highly unlikely. Another possibility is that the primary bank is actually a wrapper around some overseas correspondent bank where the funds are really held.
Occam's razor: a company selling a 1:1 hedged coin should have absolutely no difficulty whatsoever proving on a daily or hourly basis that all coins are verifiably fully hedged. It should literally be the company's prime directive, and in this particular case, especially following the endless stream of controversy. The fact they haven't managed to convincingly achieve this even once in 7 years is all I need to know.
The whole thing stinks terribly. Good luck for those who invest in it, but I'll be there if/when it blows up to quietly feel smug about it all
Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#78I'm waiting patiently for the whole Tether printing scheme to fall and crush to finally purchase Bitcoin / Ether. However I'm not viewing them as inflation hedges so long as Bitfinex / etc. are allowed to continue with their obvious money printing scheme. When most crypto trading volume is traded at trustworthy exchanges which actually hold dollars as much as they say they do, I'll trust $/BTC to be a fair market. It…
I've always championed DAI for a stablecoin. I don't know why it's not more popular. https://makerdao.com/en/
Instead of it being (supposedly) backed by a dollar reserve, it's collateralized by ETH and several ERC20 tokens in a smart contract. The smart contract does things to make DAI tend toward $1. It's been out for years and I think it has worked pretty well: https://coinmarketcap.com/currencies/multi-collateral-dai/
It works through collateralized loans.
Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#79It appears from the link in the settlement agreement: https://ag.ny.gov/sites/default/files/2021.02.17_-_settlemen... Tether wasn’t backed at all times. The argument was that this happened due to asset seizures in Poland and Portugal in 2017-2018. https://www.theblockcrypto.com/post/95207/bitfinex-tether-ne... Seems to me they couldn’t prove malicious intent, so they suggested they stop trading. Frankly this seems a…
> (probably is now)
This kind of argumentation makes cryptocurrency proponents so insufferable. There’s no evidence Tether is backed, but somehow we can just assume in a parenthesis that they probably are, and then go on a tangential rant about banks or fiat or digital gold or something.
Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#80Earlier quoted context omitted.
Tether themselves essentially admitted that it wasn’t fully backed in 2019: https://www.coindesk.com/tether-lawyer-confirms-stablecoin-7... The strangest part of the Tether story is how much of it was obvious or even out in the open. Cryptocurrency proponents were happy to look the other way as long as prices were only going up. I suspect cryptocurrency proponents and Bitfinex are working hard to spin this as a win f…
Getting rid of the fraud (tether) at the core of btc will strengthen btc. This cryptocurrency proponents should be all for it. I have honestly been surprised how long this obvious tether saga has gone on.
This is only true if we accept your unstated premise that BTC itself isn't a big ole Ponzi scheme.
I guess we could argue, "It's good news for our slightly more subtle fraud if the blatant, obvious fraud gets stamped out."