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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

#131

Post by qeternity »

pezzana wrote: post #65

And? So what? If that quantity of Tether (1/75 of the float) were dumped into the open market for USD, you'd expect to see the USD change rate fall. That clearly hasn't happened. The rate has been very close to 1:1 forever. There's this unsubstantiated conspiracy theory that as I gather goes like this: Tether prints tokens, uses them to buy bitcoin when the USDBTC exchange rate falls. These Tether issuance spikes alw…

> The problem is that if there were legitimate buying of BTC with Tether, which is plausible after the ass-whooping USDBTC has taken recently, new Tether would need to be issued to keep the 1:1 peg.

Um, no. Not sure how you think markets work, but this isn't right. Suggest you ask yourself if you really understand this topic, or if you own some crypto and thus have an incentive to believe you understand it so that you can dismiss it and enjoy the sweet crypto gainz.

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

#132

Post by qeternity »

throwvirtever wrote: post #70
pezzana wrote: post #65

And? So what? If that quantity of Tether (1/75 of the float) were dumped into the open market for USD, you'd expect to see the USD change rate fall. That clearly hasn't happened. The rate has been very close to 1:1 forever. There's this unsubstantiated conspiracy theory that as I gather goes like this: Tether prints tokens, uses them to buy bitcoin when the USDBTC exchange rate falls. These Tether issuance spikes alw…

> [I]f there were legitimate buying of BTC with Tether, which is plausible after the ass-whooping USDBTC has taken recently, new Tether would need to be issued to keep the 1:1 peg. Can you explain in detail why new Tether would need to be issued?

It wouldn't. OP doesn't understand.

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

#133

Post by beaconstudios »

javert wrote: post #96
beaconstudios wrote: post #85

Earlier quoted context omitted.

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

You can't keep traders from trading bitcoin. That doesn't mean bitcoin is unprincipled. It's in the whitepaper and the design of bitcoin. For example, the 21M btc supply limit. Bitcoin's design reflects a certain ideology about money.

Technologies don't have principles, people who use them have principles; the people who buy and sell bitcoin are mostly the same as the other cryptocoins.

Satoshi intended certain principles with the creation of bitcoin, but these are not the predominant driver of its use in actuality.

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

#134

Post by poetically »

TheDudeMan wrote: post #40
pmontra wrote: post #27

So what happens if the owner of that billion attempts to convert one thousand into USD?

They get one thousand USD (but I think they need to wait until a 3rd party wants to do the trade). That works right up until the inevitable collapse. Anyone who holds Tether is a fool. That's even dumber than buying an NFT.

This is the bottle imp paradox: https://boingboing.net/2019/02/07/the-paradox-of-the-bottle-.... The crash is far enough in the future that people don't worry about buying into USDT because they think they can sell it off before the inevitable crash.

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

#135

Post by seibelj »

qeternity wrote: post #117
rglullis wrote: post #64

Earlier quoted context omitted.

Circle has passed multiple audits. Coinbase is a company that managed to at least convince the SEC they are doing things correctly. Also important, no one from Circle/Coinbase leadership is missing, incommunicado or in hiding.

> Circle has passed multiple audits. Circle has absolutely never been audited. Circle, like Tether, has published attestations, which do not remotely approach the thoroughness of an audit.

I worked at Circle. If you think that Jeremy Allaire is going to go to federal prison, you are out of your mind. Their combined in-house plus external legal teams are larger than 95% of the YC startup headcounts. The US government has been all over them for years.

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

#136

Post by qeternity »

gruez wrote: post #123
zhoujianfu wrote: post #116

I’m not saying tether is fully backed (I think it’s been admitted they’re not), but do people not understand how it even ostensibly works? When people sell other crypto for tether/USDC, they are essentially “buying” tether/USDC. Which tether and circle “print” out of thin air… but ostensibly back by selling the other crypto they just received for real dollars. With the huge crash, a lot of people were selling their c…

>When people sell other crypto for tether/USDC, they are essentially “buying” tether/USDC. Which tether and circle “print” out of thin air… but ostensibly back by selling the other crypto they just received for real dollars. You're missing the previous links in the chain. When you sell your crypto at an exchange, your counterparty isn't the exchange, it's another person who wants to buy crypto. Therefore you making t…

Precisely. So many Tether defenders simply have no idea how exchanges or markets work for that matter.

It's truly scary how much confidence people have in topics they do not understand.

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

#137

Post by rglullis »

qeternity wrote: post #117
rglullis wrote: post #64

Earlier quoted context omitted.

Circle has passed multiple audits. Coinbase is a company that managed to at least convince the SEC they are doing things correctly. Also important, no one from Circle/Coinbase leadership is missing, incommunicado or in hiding.

> Circle has passed multiple audits. Circle has absolutely never been audited. Circle, like Tether, has published attestations, which do not remotely approach the thoroughness of an audit.

Ok. I stand corrected. Call them attestations.

Nonetheless, they have been done by independent third-parties who are a lot more reputed than whatever has actually managed to look into Tether's data. Even if you take the "attestation" done by Tether at face value, it showed a mix of assets that is absolutely unhealthy.

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

#138

Post by BrissyCoder »

natch wrote: post #120
BrissyCoder wrote: post #98

Nah. It's backed by cash and cash equivalents mate.

So in other words, long term, it's backed by toilet paper.

I think that kind of paper wouldn't make for a very comfortable ass wiping so no - lacking the utility of TP.

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

#140

Post by qeternity »

MisterBiggs wrote: post #14
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.

A huge amount of Tether is TRC20 (if memory serves, the majority). Tron is very China centric, and Tether has massive connections to Chinese capital control evasion.
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