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

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

#81

Post by gruez »

teh_infallible wrote: post #78
rsp1984 wrote: post #75

Can anybody with an understanding of the matter ELI5 to me how it can be that, given all the uncertainty, 1 Tether is still trading for ~1 USD on the major exchanges? That price seems to be determined by the open market. There are competing stablecoins. Is everybody just so confident that Tether is the real deal?

It certainly is strange that Tether hasn’t been shut down for counterfeiting, which is essentially what they are doing. I assume people in the banking industry allow them to operate as a way to hold leverage over the crypto markets and absorb capital that would otherwise flow to altcoins.

> It certainly is strange that Tether hasn’t been shut down for counterfeiting, which is essentially what they are doing.

It really isn't counterfeiting. If you made fake hundred dollar bills and passed them off, that'll be counterfeiting. However, if you decided to give a bunch of people $100 IOUs and claim they're "totally backed by real dollars in a vault somewhere", but they're not, then it's just fraud. The NY AG and/or CFPB were able to prosecute/fine them for that, but they also got rid of the "totally backed by real dollars in a vault somewhere" claim, so whether they're currently committing fraud is unclear.

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

#82

Post by Qworg »

rsp1984 wrote: post #75

Can anybody with an understanding of the matter ELI5 to me how it can be that, given all the uncertainty, 1 Tether is still trading for ~1 USD on the major exchanges? That price seems to be determined by the open market. There are competing stablecoins. Is everybody just so confident that Tether is the real deal?

Why do you assume the price is determined by the open market? Who are the large scale crypto entities that would bet against Tether?

This happens every time the price dips, but the current best explanation/theory is that Tether prints more USDT with BTC backing from exchanges, who then use that USDT to buy BTC from the market. The issue is that the exchange is part of that loop.

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

#83

Post by leoh »

teh_infallible wrote: post #78
rsp1984 wrote: post #75

Can anybody with an understanding of the matter ELI5 to me how it can be that, given all the uncertainty, 1 Tether is still trading for ~1 USD on the major exchanges? That price seems to be determined by the open market. There are competing stablecoins. Is everybody just so confident that Tether is the real deal?

It certainly is strange that Tether hasn’t been shut down for counterfeiting, which is essentially what they are doing. I assume people in the banking industry allow them to operate as a way to hold leverage over the crypto markets and absorb capital that would otherwise flow to altcoins.

You can’t pull a rug out from under your own feet

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

#84

Post by Oberbaumbrucke »

superjan wrote: post #31
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…

Beyond the fraud allegations, the idea that an organisation can just print extra money as they see fit, doesn’t that go against the principles of crypto finance? I am genuinely curious why people think that is a sustainable idea.

Few understand this

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

#85

Post by beaconstudios »

javert wrote: post #54
superjan wrote: post #31

Earlier quoted context omitted.

Beyond the fraud allegations, the idea that an organisation can just print extra money as they see fit, doesn’t that go against the principles of crypto finance? I am genuinely curious why people think that is a sustainable idea.

Bitcoin is principled. Crypto is not principled.

Bitcoin is also not principled. Plenty of people are just speculating and trying to not be the bagholder.

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

#86

Post by dragonwriter »

est31 wrote: post #74
peakaboo wrote: post #23

Earlier quoted context omitted.

Of course but you could give people some free money nevertheless and it would make the world a better place. What do you think would happen if you gave 1000 dollars to each person in America every month? I think a lot of good would come from that and not much bad.

I'm in favour of UBI, but note that it'd require extremely strict immigration policy as well as good enforcement of it, which is generally something the left very much dislikes. As already seen with covid aid, people wouldn't work in low wage jobs any more. This would lead to inflation or disappearance of some amenities. E.g. you might have to put your groceries into your bag yourself, or might have to pay a dollar e…

> I'm in favour of UBI, but note that it'd require extremely strict immigration policy as well as good enforcement of it

What do you mean by “strict” and why is this inaginee5 to be necessary? Note that UBI is usually envisioned with a defined population but the absence of means or behavior testing within that population, either “citizens” or “citizens and LPRs” or “citizens and aliens with work authorization” or “citizens and aliens with satisfactory immigration status in a specific set of visa categories based on basis and duration” would all be valid populations, with wildly different impacts on the viability of UBI with any given immigration policy.

> I'm in favour of UBI, but note that it'd require extremely strict immigration policy as well as good enforcement of it,

COVID aid isn't like UBI, critically, key parts of it (enhanced unemployment) are conditioned on absence of work or reduction of it below pre-benefits levels, and thus forces people to choose between benefits and work. This is the kind of incentive with means tested benefits that UBI is intended to fix.

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

#87

Post by repomies69 »

teh_infallible wrote: post #78
rsp1984 wrote: post #75

Can anybody with an understanding of the matter ELI5 to me how it can be that, given all the uncertainty, 1 Tether is still trading for ~1 USD on the major exchanges? That price seems to be determined by the open market. There are competing stablecoins. Is everybody just so confident that Tether is the real deal?

It certainly is strange that Tether hasn’t been shut down for counterfeiting, which is essentially what they are doing. I assume people in the banking industry allow them to operate as a way to hold leverage over the crypto markets and absorb capital that would otherwise flow to altcoins.

There are some other stablecoins, like USDC (about half the size of Tether. Why would Tether need to be closed down while USC not? Or do you think all of them should be shut down?

Tether is just an IOU note. I don't have problems with IOU notes, unless someone forces me to use them. Personally I haven't used tether and probably never will, however I don't have any problem if someone else wants to use it.

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

#88

Post by gruez »

superjan wrote: post #31
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…

Beyond the fraud allegations, the idea that an organisation can just print extra money as they see fit, doesn’t that go against the principles of crypto finance? I am genuinely curious why people think that is a sustainable idea.

>Beyond the fraud allegations, the idea that an organisation can just print extra money as they see fit, doesn’t that go against the principles of crypto finance?

or maybe the crypto community isn't a monolith, and all the cryptoanarchists aren't the people who hold/support tether?

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

#89

Post by atdrummond »

rzz3 wrote: post #76
atdrummond wrote: post #46

Earlier quoted context omitted.

A UBI doesn’t necessarily result in inflation. The later is a combination of monetary policy and expectations. UBIs can be paid by means other than printing money.

Yes, providing money without any attached good or service or unit of value definitely won’t cause inflation/s WHAT?

Huh? Do you think welfare transfer payments cause inflation?

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

#90

Post by JohnHaugeland »

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?

Lol, are you demanding people prove collateral doesn't exist, after the other collaterals they lied about became so clear with time?

.

"Or is the "out of thin air" part just means normal minting?"

There is no normal minting with a coin that claims to be verifiably one to one backed by hard assets.

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