$1M bounty for details on Tether’s backing

Post by thebean11 » Tue, Oct 19, 2021, 10:24 PM UTC

legutierr wrote: post #92

paulpan wrote: post #21

Last week CFTC fined both Tether and Bitfinex $42.5M for allegedly not holding enough reserves and colluding together. https://www.cftc.gov/PressRoom/PressReleases/8450-21 Seems like a fairly small fine in grand scheme of things no? If the critics are right and $70B+ supply is just made up paper money, then it'll be huge losses for all Tether holders. I'd conjecture it would tank the entire crypto market - and possib…

There is one scenario in which the 70 billion was at one time made-up money, but where it won't ever actually tank the crypto market: 1. Tether prints $1 billion with no backing. 2. Tether buys $1 billion of Bitcoin with the the fraudulent tokens. 3. Bitcoin triples in price. 4. Tether sells 1/3 of their position in exchange for hard currency, and holds that money in their reserves. 5. Tether now has 100% reserves ba…

Post by ryanSrich » Tue, Oct 19, 2021, 10:25 PM UTC

aazaa wrote: post #108

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 punishmen…

Post by thebean11 » Tue, Oct 19, 2021, 10:26 PM UTC

fnordfnordfnord wrote: post #113

jstx1 wrote: post #29

This made me check the prices. Apparently Bitcoin hit a new all-time high today at over $64k.

ATH is 64.8k iirc, so nearing ATH but not there yet. Watch tomorrow, First day of open trading for BITO ETF, might see a new ATH.

Post by zionic » Tue, Oct 19, 2021, 10:26 PM UTC

ryanSrich wrote: post #123

aazaa wrote: post #108

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 punishmen…

> 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 Pick any of the already existing stable coins. We don't even need new technology to replace Tether. We just need international exchanges to support existing stables.

Post by adrr » Tue, Oct 19, 2021, 10:27 PM UTC

fnordfnordfnord wrote: post #94

graeme wrote: post #2

This is very interesting. Hindenburg is the real deal. One challenge may be that, like the Mafia, Tether keeps its inner circle and employs family members. They have ~15 employees for a 70 billion dollar operation. The CTO’s wife is a manager, and the CEO’s daughter works for an unnamed crypto family office, which may be related. Their counterparties in Chinese commercial paper may not know they are counterparties du…

>Hindenburg is the real deal. Hindenburg is not the real deal. If you think Hindenburg is the real deal you should pay closer attention to their activities. They (he) are one of a number of noisy short sellers who try to drive stock prices with their tweets/reports. SEC should be doing things to these people. That said, he is probably right about Tether. Tether should make every crypto speculator or holder very nervo…