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$1M bounty for details on Tether’s backing

hindenburgresearch.com

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Re: $1M bounty for details on Tether’s backing

#181

Post by graeme »

zionic wrote: post #127
ryanSrich wrote: post #123

Earlier quoted context omitted.

> 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.

Exactly. Tether has some amazing alternatives. DAI for example.

DAI is critically dependent on USDC.

USDC recently received a Wells notice from SEC and had to amend their reserves. Still weird behaviour from them overall: they don’t disclose what their short term commercial paper is, its rating or how much of their cash equivalents it us.

Just today in the financial times Tether claimed USDC also issues USDCs backed by crypto.

And they have funny printing patterns: whenever Tether stops printing, USDC starts.

Re: $1M bounty for details on Tether’s backing

#182

Post by garyclarke27 »

Tether is obviously not backed 1:1 by USD as previously claimed. Now the dodgy piechart informs us that it is backed mainly by corporate bonds and loans - if true I would guess mostly to related companies. A recent Bloomberg article says they have been lending Billions to Chinese property companies! Eventually enough of the gullible fools will realise that the Emperor has no clothes, then there will be a run on Tether which will collapse its price, this will also crash the whole crypto market and people will finally realise that a random number (no matter how cleverly generated) is not worth $64k, not even $1k.

Re: $1M bounty for details on Tether’s backing

#183

Post by sumedh »

adrr wrote: post #129
fnordfnordfnord wrote: post #94

Earlier quoted context omitted.

>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…

Would you pay $1m for information that could let you profit 10x or even 100x?

Exactly, $1m feels very small for someone who could get more profit if they keep their mouth shut.

Re: $1M bounty for details on Tether’s backing

#184

Post by graeme »

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…

Tether claimed their excess reserves were $160 million. So the fine is a quarter of that.

Re: $1M bounty for details on Tether’s backing

#185

Post by [deleted] »

chunky1994 wrote: post #169
legutierr wrote: post #92

Earlier quoted context omitted.

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…

It really can't happen this way. Between 3 and 4, you'd tank bitcoin's value significantly (assuming $1B is able to triple bitcoin's market value). Any sizeable liquidation of bitcoin at an inflated price is going to affect the price heavily and so now you no longer have 100% backing. (This of course depends on how elastic BTC/USDT price is)

[deleted]

Re: $1M bounty for details on Tether’s backing

#187

Post by graeme »

fleddr wrote: post #137
tppiotrowski wrote: post #74

How can one profit from a crypto bubble? I’ve heard of an ETF for shorting Bitcoin but never saw any specifics. Can anyone provide a reputable brokerage for shorting crypto currencies?

You don't need an ETF for that, you can directly short any crypto at many exchanges. To profit from the short you should obviously time the market well.

If Tether implodes, strong risk those exchanges do too. Massive counterparty risk.

Re: $1M bounty for details on Tether’s backing

#188

Post by dsjegkl »

perl4ever wrote: post #35
rexstjohn wrote: post #12

Federal Reserve was crafted in a secret meeting on Jekyll Island ( https://en.m.wikipedia.org/wiki/Federal_Reserve ) between industry and government. Still exists and functions today. Lot of people don’t like it, but it’s there regardless. Even if the origin, operation of Tether is highly suspicious: if it functions, is widely adopted and does what is expected … may last longer than people think. Best response is mor…

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…

>...holding a fraction of deposited money as reserves...

US banks haven't had reserve requirements since March 2020.

https://www.federalreserve.gov/monetarypolicy/reservereq.htm

Re: $1M bounty for details on Tether’s backing

#189

Post by jacquesm »

discodave wrote: post #162
ctvo wrote: post #122

Earlier quoted context omitted.

> 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. https://hindenburgresearch.com/about-us/ Which of the items listed there do you have an issue with? Hindenburg were the folks who gave us…

Technically Nikola gave us the truck rolling down the hill. Hindenburg just let us find out about it. :)

"Nikola One Electric Semi Truck in Motion." must have been the mother of all marketing lies. Technically 100% true, rotten to the core.

Re: $1M bounty for details on Tether’s backing

#190

Post by hackingforfun »

DrammBA wrote: post #179
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…

Can you (or anyone) give me a few more keywords to find more info about that claw-back of funds? I'm new to the crypto space and my google-fu is lacking today, can't find anything about Ethereum defective contract and subsequent claw-back of funds.

It was The DAO hack [1].

[1] https://www.gemini.com/cryptopedia/the-dao-hack-makerdao

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