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Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

whale-alert.io

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Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

#11

Post by alpha_squared »

Every time there's a tether story here, the inevitable discussion of fraudulent activity comes up because Tether seems like an outright scam. I'm inclined to believe all that from what I've read and however little I can make sense of. However, I can't really tell how this ends. They seem confident that there will be no repercussions to minting money out of thin air and, so far, they've been right.

Eventually, that's bound to catch up, but I suspect it's going to hurt a lot more than just those with crypto assets and hurt a lot of those without crypto assets, no?

Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

#14

Post by MisterBiggs »

jagger27 wrote: post #8

Can someone explain why this is on the "TRON" blockchain? I thought Tether was on Ethereum.

Just about every Ethereum competitor has some equivalent to ERC20 tokens. I'm surprised Tether dedicated 1 Billion USDT to TRON but its likely because they don't think there will be any repercussions for creating liquidity out of thin air.

Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

#15

Post by peakaboo »

alpha_squared wrote: post #11

Every time there's a tether story here, the inevitable discussion of fraudulent activity comes up because Tether seems like an outright scam. I'm inclined to believe all that from what I've read and however little I can make sense of. However, I can't really tell how this ends. They seem confident that there will be no repercussions to minting money out of thin air and, so far, they've been right. Eventually, that's…

This also means that nobody needs to be poor. Anyone can just get some money since its tied to nothing.

Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

#16

Post by poetically »

babyshake wrote: post #6

When it says out of thin air, it means that is some verifiable confirmation of no collateral? Or is the "out of thin air" part just means normal minting?

No one has seen any of their collateral or knows how much of it they actually have. I believe the finance people call this being over-leveraged but I'm not an expert. Seems kinda weird that the SEC hasn't looked into it.

Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

#18

Post by tehlike »

intuitionist wrote: post #10
quangv wrote: post #2

I kinda of think this is causing the current housing prices bubble.

Tether’s total (on-chain) liabilities sum to a bit less than two months’ worth of Federal Reserve purchases of agency mortgage-backed securities. They’re huge, if they’re a fraud they’re probably the biggest ever, but in macro terms they’re small fry.

inflating crypto prices, people end up diversifying into real estate.

Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

#19

Post by rp1 »

peakaboo wrote: post #15
alpha_squared wrote: post #11

Every time there's a tether story here, the inevitable discussion of fraudulent activity comes up because Tether seems like an outright scam. I'm inclined to believe all that from what I've read and however little I can make sense of. However, I can't really tell how this ends. They seem confident that there will be no repercussions to minting money out of thin air and, so far, they've been right. Eventually, that's…

This also means that nobody needs to be poor. Anyone can just get some money since its tied to nothing.

Relative scarcity is a necessity for any currency.

Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

#20

Post by gadnuk »

They printed another billion just 6 hours ago: https://twitter.com/whale_alert/status/1467504581571751940

They have become so brazen, that they will just keep printing billions without any audit or insight into their holdings.

Their last attestation published a few days ago (by them, not by any independent firm) raises more questions than answers: https://twitter.com/dee_bosa/status/1466826912781590529

They barely have any backing in actual USD and are very suspect in the commercial paper holdings

They have a CTO who regularly engages in snarky comments when asked about their holdings: https://twitter.com/paoloardoino

They have a CFO who has a very very checkered past: https://www.ft.com/content/4da3060c-8e1a-439f-a1d7-a6a4688ad...

Tether has regularly been sued and settled, never won.

CFTC: https://www.cftc.gov/PressRoom/PressReleases/8450-21

NYAG: https://www.cnbc.com/2021/02/23/tether-bitfinex-reach-settle...

DOJ: https://www.bloomberg.com/news/articles/2021-07-26/tether-ex...

Moreover, they roped in a nation state (El Salvador) to issue bonds that fund El Salvador’s Bitcoin City to be issued on Blockstream’s Liquid Network and processed by iFinex, the controversial company behind Tether.

https://blockworks.co/el-salvador-plans-bitcoin-city-funded-...

To add to that, the SEC denied creation of VanEck’s bitcoin-backed ETF because of risks associated with Tether

https://www.ft.com/content/77bc7296-9bd4-4ea4-bab9-91cee789e...

From the article: "Among the concerns the SEC raised in the disapproval order included possible “wash trading”, when the same institution is on both sides of the trade, generating extra fees for minimal risk; potential price manipulation by whales who dominate bitcoin; and possible “manipulative activity involving the purported ‘stablecoin’ Tether”.

The list keeps going on and on and on...

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