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$1M bounty for details on Tether’s backing

hindenburgresearch.com

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Re: $1M bounty for details on Tether’s backing

#101

Post by djbebs »

UncleOxidant wrote: post #76
JumpCrisscross wrote: post #63

Earlier quoted context omitted.

> Is it illegal for a private person to offer to pay someone to illegally snitch on an illegal operation? It's not illegal to pay someone for information. If you induce them to violate an NDA, yes, it could be. But given the question "under what jurisdiction does Tether really operate" is a debatable question, I'd say it's probably risky but fine. (If you trade on that information, it could be a different story.)

> If you induce them to violate an NDA, yes, it could be. Is violating an NDA illegal ? I'm not a lawyer and I don't play one on TV, but I don't think violating an NDA is illegal as in you could go to prison for violating a law. Yes, it could open you up to legal jeopardy as in a lawsuit which could be expensive, but I don't think any laws are violated. And if you're violating an NDA to expose some corrupt practices…

It's not, but tortious interference is a thing

Re: $1M bounty for details on Tether’s backing

#102

Post by ur-whale »

hmate9 wrote: post #48
paulpauper wrote: post #30

There has been nothing but Tether doom and gloom since 2017 and yet here it is still at 1.0000 If anyone thinks this will drop, now is the opportunity to short, I suppose.

Shorting Tether is a great play. Either everyone loses faith and nobody trusts them anymore or.... it stays at $1. You are not going to lose. You just have to pay funding fees for your short which on FTX is around 4% a year. Do you think there is a great chance that Tether is a massive scam and will find its doom within the next 25 years? My answer to that is yes.

Given how deep FTX is into USDT, it's rather unlikely they'd survive a Tether implosion, and your short position will there will evaporate in a puff of smoke.

Re: $1M bounty for details on Tether’s backing

#103

Post by PKop »

xur17 wrote: post #16
rexstjohn wrote: post #12

Federal Reserve was crafted in a secret meeting on Jekyll Island ( https://en.m.wikipedia.org/wiki/Federal_Reserve ) between industry and government. Still exists and functions today. Lot of people don’t like it, but it’s there regardless. Even if the origin, operation of Tether is highly suspicious: if it functions, is widely adopted and does what is expected … may last longer than people think. Best response is mor…

> Even if the origin, operation of Tether is highly suspicious: if it functions, is widely adopted and does what is expected … may last longer than people think. I think you're right about this point, and I've been trying to imagine what might cause Tether to collapse - you really need a run on the bank situation triggered by something causing them to become insolvent.

A crash in the corporate paper they hold, which would destroy the rest of the economy even more. Tether would be a footnote to that event.

Re: $1M bounty for details on Tether’s backing

#104

Post by pornel »

honestduane wrote: post #58

Tether is a cryptocurrency with tokens issued by Tether Limited, which in turn is controlled by the owners of Bitfinex

Isn't that absurd? Cryptocurrencies were supposed to be fully decentralized, and not require trusting anybody.

This one depends on financial hacks done by a single private company. It seems like beenz.com, only with a different tech stack.

Re: $1M bounty for details on Tether’s backing

#105

Post by speedybird »

fknorangesite wrote: post #100
speedybird wrote: post #45

Earlier quoted context omitted.

I guess it's actually his real name, and Zeke short for Ezekiel isn't uncommon. But Zeke can also mean 'cloak'.

Christ this may as well be numerology.

As I said, I think it's probably his real name. But it's a cool name for sure; his name would be right at home in a cyberpunk novel.

Re: $1M bounty for details on Tether’s backing

#106

Post by Closi »

marvin wrote: post #53
perl4ever wrote: post #43

Earlier quoted context omitted.

A run on a bank can make it insolvent? I thought that insolvency was when they don't have the assets to cover their liabilities. My understanding of a bank run is it happens when a bank is solvent, but doesn't have enough in reserves - liquid, short term assets. But if they simply don't have at least 100% of their liabilities in assets, then they are bust because they can never pay people back barring a miracle.

> But if they simply don't have at least 100% of their liabilities in assets, then they are bust. Only when we find out!

Well usually banks have huge audit requirements and are covered in regulation to avoid this happening (after learning what happens when you have entirely unregulated financial institutions)

Re: $1M bounty for details on Tether’s backing

#107

Post by ur-whale »

superfunny wrote: post #82
JumpCrisscross wrote: post #70

Earlier quoted context omitted.

> Shorting Tether is a great play Why do you think there will be a functioning market to pay you out if and when it collapses?

I think the better trade would be to do a hedged short against bitcoin, perhaps using futures; if Tether collapses, Bitcoin is going to get hurt as well.

> if Tether collapses, Bitcoin is going to get hurt as well.

That's one theory. Another is that the only way out of Tether will be BTC and the pressure will likely push BTC up, at least for a while.

Re: $1M bounty for details on Tether’s backing

#108

Post by aazaa »

It may be counterintuitive, but the best thing that could happen to Bitcoin would be for Tether to collapse in a cloud of dust. Tether is continually cited as a large risk factor to Bitcoin by people who have gotten past the "it's not real money" objection.

But I think it's worth considering what happens if the collapse never comes. If government investigation, findings of wrongdoing, admission of lies, and punishment aren't enough to shake Tether users out of their trees, then what would, exactly?

Ethereum allowed a claw-back of funds lost fair and square to a defective contract. Where is Ethereum now? Oh yeah, near an all-time high and a market cap approaching half a trillion dollars.

What non-users don't get is the fanatical level of devotion by users. It waxes and wanes with the Bitcoin halving cycle, but always comes back stronger than before.

If Tether did somehow implode and users left in droves, something else would come along to take its place and within a year or two and the entire Bitcoin ecosystem would come roaring back stronger than ever.

Re: $1M bounty for details on Tether’s backing

#109

Post by hmate9 »

ur-whale wrote: post #102
hmate9 wrote: post #48

Earlier quoted context omitted.

Shorting Tether is a great play. Either everyone loses faith and nobody trusts them anymore or.... it stays at $1. You are not going to lose. You just have to pay funding fees for your short which on FTX is around 4% a year. Do you think there is a great chance that Tether is a massive scam and will find its doom within the next 25 years? My answer to that is yes.

Given how deep FTX is into USDT, it's rather unlikely they'd survive a Tether implosion, and your short position will there will evaporate in a puff of smoke.

What do you mean FTX is deep in USDT?

Re: $1M bounty for details on Tether’s backing

#110

Post by [deleted] »

perl4ever wrote: post #43
xur17 wrote: post #16

Earlier quoted context omitted.

> Even if the origin, operation of Tether is highly suspicious: if it functions, is widely adopted and does what is expected … may last longer than people think. I think you're right about this point, and I've been trying to imagine what might cause Tether to collapse - you really need a run on the bank situation triggered by something causing them to become insolvent.

A run on a bank can make it insolvent? I thought that insolvency was when they don't have the assets to cover their liabilities. My understanding of a bank run is it happens when a bank is solvent, but doesn't have enough in reserves - liquid, short term assets. But if they simply don't have at least 100% of their liabilities in assets, then they are bust because they can never pay people back barring a miracle.

[deleted]
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