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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

#211

Post by eightysixfour »

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)

He isn't claiming the $1b tripled bitcoin's price, just that the price tripled while they were holding $1b in coins.

$1b could also triple bitcoins price without the liquidity problems you're talking about because the initial purchase, done intelligently, can increase the price enough to kick-start another buying cycle (bitcoin goes up 100%, ends up on MSM news channels, people download coinbase and buy bitcoin, loop continues).

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

#212

Post by fleddr »

graeme wrote: post #187
fleddr wrote: post #137

Earlier quoted context omitted.

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.

Got it. In that case, you can short $COIN. I wouldn't recommend it for another 3-6 months though.

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

#213

Post by mrDmrTmrJ »

sumedh wrote: post #183
adrr wrote: post #129

Earlier quoted context omitted.

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.

Short selling profit depends on timing - i.e. the drop happening before the fees for shorting kill you.

So I do have this information, and want to make $$$$$$$ it's actually in my interest to also collect $1M from Hindenburg, to make this information plabic, *after I've established my positions

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

#214

Post by arcticbull »

jdhn wrote: post #144
wpietri wrote: post #120

Earlier quoted context omitted.

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?

>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.

And forced him to step down as chair in 2018.

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

#215

Post by vkou »

hackingforfun wrote: post #202
qeternity wrote: post #161

Earlier quoted context omitted.

No, the price in USDT would rise and then as people promptly sold for USD it would collapse in USD terms.

What guarantees that everyone would sell that Bitcoin for USD?

If those people wanted to hold BTC, they'd have been holding it in the first place, instead of USDT.

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

#216

Post by democracy »

Anyone can issue a "cryptocurrency", yeah, but why would anyone accept that crap? Why would exchanges start trading it if it would take them 10 minutes to launch a "stablecoin" of their own? Was they way in financed by millions and millions of dollars in listing/marketing fees? I think that's the only reason tether even exists.

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

#217

Post by eightysixfour »

ur-whale wrote: post #107
superfunny wrote: post #82

Earlier quoted context omitted.

I think the better trade would be to do a hedged short against bitcoin, perhaps using futures; if Tether collapses, Bitcoin is going to get hurt as well.

> if Tether collapses, Bitcoin is going to get hurt as well. That's one theory. Another is that the only way out of Tether will be BTC and the pressure will likely push BTC up, at least for a while.

This assumes that USDT/USD somehow holds at the same time USDT collapses? What will actually happen is that USDT will flood into BTC, driving BTC up in terms of USDT and down in terms of USD.

If the peg breaks, it breaks.

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

#218

Post by NelsonMinar »

For anyone looking for context on Tether's finances: "With estimated leverage of 383-to-1, Tether would be unable to honour all its tokens after losses of just 0.26%—a safety cushion that regulators would never allow at a bank." https://www.economist.com/leaders/2021/08/07/why-regulators-...

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

#219

Post by baby »

Taikonerd wrote: post #9
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…

I just realized that the Bloomberg reporter who wrote the recent story is named "Zeke Faux." ( Faux meaning "fake" in French, in a story about fraud.) Is his name a pseudonym? If not, it's another surreal point in a surreal story.

It also means wrong

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

#220

Post by gitfan86 »

NelsonMinar wrote: post #218

For anyone looking for context on Tether's finances: "With estimated leverage of 383-to-1, Tether would be unable to honour all its tokens after losses of just 0.26%—a safety cushion that regulators would never allow at a bank." https://www.economist.com/leaders/2021/08/07/why-regulators-...

But Tether doesn't have to honor redemptions like a bank does. They can mint Tether, buy BTC with that, and give you that BTC as a redemption.
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