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Tether Critical Announcement

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Re: Tether Critical Announcement

#231

Post by icelancer »

unabridged wrote: post #213
kobeya wrote: post #145

Earlier quoted context omitted.

It’s a bad thing to the idea of a trustless, irrevocable, fully machine audited ledger of account. Why not just run it in your favorite RDBMS? That way we’d at least save a bunch of CO2 emissions.

>the idea of a trustless, irrevocable, fully machine audited ledger of account This is just giving sentimentality an economic value. Forking should constantly be considered, you should always be looking to maximize the value of your stake. Imagine two coins A & B with exactly the same distribution, except in coin A a real jerk has 10% of the coins and you know his addresses. You also know almost all of the holders al…

That's literally the tyranny of the majority. Who determines what the majority is? 90% in your example, but what if 65% of people do the same and wipe 35% out? That could easily be done by buying enough of the coins / merging with enough of the users.

That scenario is completely ridiculous and unacceptable.

Re: Tether Critical Announcement

#232

Post by jstanley »

matthewbauer wrote: post #217
jstanley wrote: post #196

Earlier quoted context omitted.

Murdering your wife is wrong by nature. Moving some money around without telling the government is only illegal because it's illegal. To me, the difference is whether or not there is a victim. No victim, no wrongdoing.

I think its debatable. If you knowingly helped a murderer dispose of a body, that’s wrong by nature right? Money laundering is the financial equivalent of that.

No, money laundering is the financial equivalent of running a taxi service and not asking any questions about the luggage.

It's not necessarily disposing of a body, and punishing people for moving luggage around without asking questions is obviously absurd.

Re: Tether Critical Announcement

#233

Post by jstanley »

zaarn wrote: post #202
jstanley wrote: post #196

Earlier quoted context omitted.

Murdering your wife is wrong by nature. Moving some money around without telling the government is only illegal because it's illegal. To me, the difference is whether or not there is a victim. No victim, no wrongdoing.

Murdering my wife is wrong because I believe it to be wrong. And a lot of people agree with that. I see no reason why the universe at large cares though. If you don't tell the government you're moving resulting in taxes not being paid properly then you're damaging the government and by proxy, society. Atleast, that's what I think.

Right, then you're tax avoiding, and should be charged with tax avoidance.

In cases where you're not tax avoiding, why does money laundering have to be a separate crime? It comes back to "Money laundering is just a cheat code for prosecutors to get easy points when they can't actually find real wrongdoing."

Re: Tether Critical Announcement

#234

Post by ErikHuisman »

sanxiyn wrote: post #44
tfha wrote: post #27

Isn't tether the one that screwed up? They are the ones who got stolen from, why do other exchanges have to bend over backwards and issue updates? If the attacker is moving fast enough, exchanges probably can't even respond in time. That shouldn't mean that they lose money. If tether reserves the right to delist coins at any time without much notice, why would you ever consider that a safe asset to accept?

Situation seems analogous to DAO hack. It was DAO who got stolen, Ethereum was fine, no Ethereum software had to bend over backwards to follow hard fork. Still, it seems post-ETH/ETC-fork ETH is doing fine, and sometimes even considered a safe asset to accept.

Problem is the tether is allready spent. So the exchanges where the tether is spent is paying it out their pockets, no?

Re: Tether Critical Announcement

#235

Post by amarkov »

mrb wrote: post #224
amarkov wrote: post #215

Earlier quoted context omitted.

Where are you getting this number from?

24h trading volume: https://coinmarketcap.com/currencies/bitcoin/#markets

This includes a lot of crypto-crypto volume. Just in the top ten, there's $168m Bitcoin Gold, $145m of Bitcoin Cash, $95m of something called "PowerLedger" that I'm hearing of now for the first time, and $84m of Neo.

Is this real trading activity, or is it people discovering that there's no feasible way to trade USD directly for the meme coin du jour?

Re: Tether Critical Announcement

#236

Post by joosters »

rtpg wrote: post #7
empath75 wrote: post #5

Earlier quoted context omitted.

$600 million in fake dollars? Amazing that they've gotten away with it for that long.

Well if you can take your USDT and buy BTC elsewhere, and then turn those to USD through whatever means it works well for you. My bet is that exchanges are holding a lot of these, and they're a bit bought in to Bitfinex not falling over...

Exchanges don't hold the tether, their customers do. If/when tether falls over, the exchanges won't be the ones taking the hit.

Re: Tether Critical Announcement

#237

Post by pjc50 »

foxhop wrote: post #68

The abstractions and tech which cryptocurrency works on is fragile in most of the same ways as the layers that came before it (credit cards/banks/etc). Try to look at all this holistically. How many people and resources do we dedicate on this planet to keep track of money, economy, mine the coins, cash the checks, swipe the cards, keep the lines working? All of these abstractions make trade faster and more liquid but…

> I would guess that 70% of our resources and jobs are dedicated to this nonsense

I think that's a wild overstatement, even if you're including every kind of management and public service job in the world.

Re: Tether Critical Announcement

#238

Post by ryanlol »

chx wrote: post #149
ActsJuvenile wrote: post #111

Earlier quoted context omitted.

Tell your friends they should shutdown the company immediately to avoid prison time. Using USD to back any token or digital asset 1:1 is a serious crime as demonstrated by Liberty Reserve.

What...? Liberty Reserve was a money laundering operation and had nothing to do with 1:1 or whatever. If there's something in the US Criminal Code about that, you need to cite it but I believe there isn't.

Tether does seem to suffer from exact same problems as LR though, no?

It’s structured in a manner that makes it trivial to establish third party exchangers with no KYC processes. There is no KYC for individual Tether users, who only need to generate a bitcoin address to get started.

Only time they do KYC is when you want to exchange via Tether website directly, which is no different from what LR did IIRC.

Re: Tether Critical Announcement

#240

Post by [deleted] »

ActsJuvenile wrote: post #111
Jd wrote: post #28

Here's some more context: Tether was originally setup as RealCoin. It originally had a clear bank account relationship with a Taiwanese bank. It had about $30mm. Then the bank cut them off. Since then they've been floating without any announced banking relationship and they also changed their terms of service. Over the same time period they made a partnership with BitFinex and their supposed AUM has gone up over 10x.…

Tell your friends they should shutdown the company immediately to avoid prison time. Using USD to back any token or digital asset 1:1 is a serious crime as demonstrated by Liberty Reserve.

[deleted]
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