BitConnect Closes Exchange as States Warn of Unregulated Sales

Post by ufo » Wed, Jan 17, 2018, 3:34 PM UTC

t3chn0SchO0lbus wrote: post #71

dudus wrote: post #14

Earlier quoted context omitted.

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…

I keep trying to wrap my head around the economics of this and maybe give Tether the benefit of doubt. I think the most damning technical detail is that there is no client-side wallet. We can't trade Tether amongst ourselves or engage in any trades that Tether doesn't have at least indirect control of.

Post by edkennedy » Wed, Jan 17, 2018, 3:38 PM UTC

ve55 wrote: post #5

For 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…

Post by zimpenfish » Wed, Jan 17, 2018, 3:41 PM UTC

StavrosK wrote: post #41

ve55 wrote: post #5

For 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 know a few people who fell for this, despite my warnings. When you tell someone "these returns are astronomical, teams of PhDs in hedge funds cannot come anywhere close, do you think they're so dumb that they wouldn't put billions in this if it were legitimate" and they reply "yes, I do", there's no helping them.

Post by benmmurphy » Wed, Jan 17, 2018, 3:43 PM UTC

mcintyre1994 wrote: post #123

Alex3917 wrote: post #49

Earlier quoted context omitted.

Tether just hit a new all time high of $1.07, making the return on investment significantly better than most VC funds.

Isn't the entire point of it to be pegged 1USDT === 1USD? Obviously it fails at that by being backed by nothing like enough USD, but what does it being worth $1.07 even mean? Also, where do you sell Tethers given Bitfinex won't exchange them for USD?

Post by rednerrus » Wed, Jan 17, 2018, 4:03 PM UTC

Alex3917 wrote: post #49

sitepodmatt wrote: post #3

One scam down at least, next the Tether printer and BitFinex boys. Clean up in aisle HKG please.

Tether just hit a new all time high of $1.07, making the return on investment significantly better than most VC funds.