$1M bounty for details on Tether’s backing

Post by qeternity » Tue, Oct 19, 2021, 10:53 PM UTC

seibelj wrote: post #133

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…

The price of Bitcoin would rise precipitously as traders tried to exit tether any way possible, as would all other cryptos.

Post by qeternity » Tue, Oct 19, 2021, 10:56 PM UTC

JumpCrisscross wrote: post #65

tcgv wrote: post #19

Earlier quoted context omitted.

I wonder why this Reaserch firm is offering such a substantial bounty for information on Tether. What's in it for them? Where will this money come from? From their site they provide an answer (and even a "track record") [1]: > We look for (...) man-made disasters floating around in the market and aim to shed light on them before they lure in more unsuspecting victims. Hence it seems they're doing it for the bennefit…

It's marketing. When Hindenburg publishes equity research, the disclosure is "you should assume that as of the publication date of any short-biased report or letter, Hindenburg Research...has a short position in all stocks (and/or options of the stock) covered herein, and therefore stands to realize significant gains in the event that the price of any stock covered herein declines." [1] https://hindenburgresearch.com…

Post by ufo » Tue, Oct 19, 2021, 10:59 PM UTC

jcranmer wrote: post #142

Dma54rhs wrote: post #93

Earlier quoted context omitted.

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.

If a bank makes a loan to somebody else, the value of that loan is recorded as an asset. Customer deposits at a bank are recorded as liabilities. Even when banks loan out money to other people, they are careful to make sure that their assets exceed liabilities--and not by a small amount, but by something like 10%. Now, not all loans are repaid, and when that happens, the bank will take a write-off of that asset, redu…

Post by kfprt » Tue, Oct 19, 2021, 11:01 PM UTC

avree wrote: post #141

VRay wrote: post #90

Earlier quoted context omitted.

"Well, Mikey Ouse on HackerNews vouched for him"

It's pretty clear that Zeke Faux from Bloomberg existed long before Tether existed as a company.

Post by chunky1994 » Tue, Oct 19, 2021, 11:03 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…