141–150 of 326 posts
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Nope - that's his real last name. We have some mutual friends and via FB I can see at least a dozen family members with the same surname.
"Well, Mikey Ouse on HackerNews vouched for him"
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When people say "hey, Tether is no worse than the existing financial system" I wonder if they don't understand the difference between holding a fraction of deposited money as reserves, and only having a fraction of deposited money as assets, period. As far as I know, when the latter happens in a real bank, they get shut down, shareholders lose their money, and only the FDIC saves the depositors. Just because that's t…
I've never held any coin but why can't it be true? The money is imaginary anyway and while you can talk about backing dollars with tanks and bomb at the end of the day is there are believers there is a market snd one market can outlive another. Saving depositors in regular banking is pure belief as well.
Now, not all loans are repaid, and when that happens, the bank will take a write-off of that asset, reducing its assets. In a bad financial crisis, this might hit something 5, 6, 7% of their total assets--but remember that they started with 110% assets over liabilities, so they're still left with more assets over liabilities.
The thing with Tether is that if you look at Tether's claimed accounts, their assets-to-liabilities ratio is 100.2%. When that ratio dips below 100%, you are insolvent. If I recall my math correctly, a 5% drop in the price of Bitcoin would make Tether literally insolvent.
You might argue that all the financial shenanigans are ultimately illusory, but the fact remains that the person crowing about the unreality of finance is the one that is tapdancing on an oil-soaked rope while juggling flamethrowers. And huffing ClF₃ at the same time, perhaps--they're unwilling to tell us.
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not clear if it is the easiest target to short, given that many people who use tether are fairly skeptical about how/if the tokens are backed by assets but use it anyway (if the recent Bloomberg story is accurate).
Seriously, how would you short Tether at scale? It's not like you can call up your prime brokerage.
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>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…
Oh? Why should the SEC do anything? If it's wrong to talk about a company in hopes of affecting the stock price, shouldn't Elon Musk be doing hard time?
He should be, but they basically gave him the same treatment they give a lot of people: a slap on the wrist.
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…
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…
They also forced a CEO stepdown at Lordstown motors, got the SEC to investigate and forced the company to amend their accounting statements.
https://en.m.wikipedia.org/wiki/Hindenburg_Research
And their reports have been pretty accurate this year based on long term market reaction: https://breakoutpoint.com/blog/2021/10/activist-short-sellin...
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Tranching is a thing. It's fine. It works, if you don't pretend AAA-rated securities, which have--and historically had--a very low risk of losses, are both safe and liquid. If tranching were all Tether were doing, it would just be fraud. You can't sell a senior tranche on a pool of assets as a fully-backed security and call it a day. But whatever, Tether did that and more, nobody cared, we're on the next tier of the…
But they can print more tether, buy bitcoin with that tether, and give you bitcoin as redemptions. This could go on for a very long time.
Disclosure: Hindenburg Research does not hold positions, either long or short, in Tether, bitcoin or any cryptocurrency at the time of this press release.
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…
The price of Bitcoin would rise precipitously as traders tried to exit tether any way possible, as would all other cryptos.
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…
The price of Bitcoin would rise precipitously as traders tried to exit tether any way possible, as would all other cryptos.
Short term if USDT collapses, BTC would probably skyrocket due to everybody looking for an exit out how USDT. But long term? What if the BTC demand is simply mostly all fake?