One scam down at least, next the Tether printer and BitFinex boys. Clean up in aisle HKG please.
I'm aware that tether's reserves are a little doubtful, but could you elaborate on why Bitfinex is sketchy?
BitConnect Closes Exchange as States Warn of Unregulated Sales
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Re: BitConnect Closes Exchange as States Warn of Unregulated Sales
#12One scam down at least, next the Tether printer and BitFinex boys. Clean up in aisle HKG please.
I'm aware that tether's reserves are a little doubtful, but could you elaborate on why Bitfinex is sketchy?
I believe the main concern is whether 1 tether is actually backed by 1 USD.
There is a series of articles[0] about why tether and Bitfinex are scary
Re: BitConnect Closes Exchange as States Warn of Unregulated Sales
#13BitConnect is definitely a ponzi, but I think this sets the wrong precedent. Exchanges should have voluntarily delisted BCC (many already have, but it still trades on some markets and is listed on coinmarketcap) rather than being forced by threats from the government. This gives regulators credence as our protectors and suggests they will try these strongarm tactics again in the future.
The regulators exist because the entire history of our financial and legal system demonstrates that companies frequently don't "voluntarily" do the right thing when there's money to be made.
Re: BitConnect Closes Exchange as States Warn of Unregulated Sales
#14One scam down at least, next the Tether printer and BitFinex boys. Clean up in aisle HKG please.
Tether has remained at about $1/coin for a long time. Isn't it liquid if you trade it for BTC then to fiat?
If you trade it for bitcoin someone is selling you that bitcoin for tether. That person will go ahead and trade that tether for some other coin.... rinse repeat, but in the end someone is holding that Tether, if exchanges stop accepting tether eventually your only option is to cash out to USD. USDT is basically being used as a trade coin, to avoid cashing out (maybe to avoid taxation) or to speculate on USD with the intent to eventually redeem for USD.
At some point someone will try to cash out on the tether. And that's when we'll find out if Bitfinex really has the USD reserves to back that as they say they have.
But it's getting harder and harder to believe that money really exists.
Tether keeps getting printed by the millions specially when bitcoin is on a downtrend (just today 200M was printed). For some reason I doubt someone wrote them a check for 200M USD today.
Also Bitfinex never completed or released audits they promised.
The more you dig the more it looks like Bitfinex is printing fake money to pump cryptocoins.
Re: BitConnect Closes Exchange as States Warn of Unregulated Sales
#15For those unaware, Bitconnect was a Bitcoin-based ponzi-scheme that had operated 'successfully' for quite some time. I don't say 'ponzi' as an insult in the way some do for cryptocurrencies, it was quite literally just a bare-bones ponzi scheme, where you deposit your money (Bitcoin) on their website, buy their token, 'lock' your funds for some amount of time, and you are promised very high interest rates while encou…
I noticed this other apparent BitConnect-like Ponzi scheme here: https://polynetwork.org
Funny thing, I noticed because it is using an old version of our 3D player on their home page (the 3D robot), and they are getting an incredible amount of traffic.
Re: BitConnect Closes Exchange as States Warn of Unregulated Sales
#16For those unaware, Bitconnect was a Bitcoin-based ponzi-scheme that had operated 'successfully' for quite some time. I don't say 'ponzi' as an insult in the way some do for cryptocurrencies, it was quite literally just a bare-bones ponzi scheme, where you deposit your money (Bitcoin) on their website, buy their token, 'lock' your funds for some amount of time, and you are promised very high interest rates while encou…
> Famous Youtubers and other individuals with influence convinced hundreds of people to put their money into BitConnect in order to profit off of referrals If you lost money in this scheme and are in the United States or Canada, contact your state securities regulator [1]. Mention any such referral sources. Those individuals may be liable for securities fraud under state and federal law. If you're in the United State…
Doesn’t fraud require deception? Wasn’t this pretty upfront about being a Ponzi scheme?
Re: BitConnect Closes Exchange as States Warn of Unregulated Sales
#17For those unaware, Bitconnect was a Bitcoin-based ponzi-scheme that had operated 'successfully' for quite some time. I don't say 'ponzi' as an insult in the way some do for cryptocurrencies, it was quite literally just a bare-bones ponzi scheme, where you deposit your money (Bitcoin) on their website, buy their token, 'lock' your funds for some amount of time, and you are promised very high interest rates while encou…
https://www.youtube.com/results?search_query=BitConnect+refe... Jesus, this is pretty blatant.
Several of the "get referrals!" videos literally use pyramids in their thumbnails to illustrate the program. Holy crap.
Re: BitConnect Closes Exchange as States Warn of Unregulated Sales
#18One scam down at least, next the Tether printer and BitFinex boys. Clean up in aisle HKG please.
I'm aware that tether's reserves are a little doubtful, but could you elaborate on why Bitfinex is sketchy?
For starters, they don't deal in USD at all. They deal in "USDT", which isn't at all USD but a token called a tether that is somehow magically supposed to be pegged so 1 USDT == 1USD that you can... well... I dunno what you can do with a tether but one thing you can't do is turn it into actual fiat money on Bitfinex. You might be able to convert it to cold hard fiat on some other exchange though, but odds are good said exchange will be even more sketchy than Bitfinex.
Better still, the "market cap" for tether is over 1.6 billion USD with 5.5 billion in volume today. What happens when people actually want to turn that 1.6 billion of outstanding tether into dirty fiat? Who is gonna buy all those sells into USD? The exchanges? You think those guys are holding 1.6 billion in actual fiat money?
So if you like the idea that the most active "USD" exchange (bitfinex, according to coinmarketcap) isn't actually trading in "USD" but some kind of funny money that is supposed to always be pegged to the dollar but backed by absolutely nothing at all.... Consider what will happen when the crypto bubble collapse really starts to pick up and all those tether holders want back into filthy dirty American dollars. Good fucking luck.
It's just another facet of what makes the crypto "space" so fascinating. It is just layer upon layer of scams. Scammers scamming scammers. And yet people, even some supposedly smart people here on HN, continue to fall for the crypto scam every day.
PS: for a good time read the tether TOS: https://tether.to/legal/
Re: BitConnect Closes Exchange as States Warn of Unregulated Sales
#19I'm just going to leave this here: https://www.youtube.com/watch?v=kbR1SXIje1U
Re: BitConnect Closes Exchange as States Warn of Unregulated Sales
#20One scam down at least, next the Tether printer and BitFinex boys. Clean up in aisle HKG please.
I'm aware that tether's reserves are a little doubtful, but could you elaborate on why Bitfinex is sketchy?
"Bitfinex’s CEO is also the CEO of a company called Tether Limited"
http://fortune.com/2017/12/05/bitcoin-btc-price-usd-tether-l...