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Tether Critical Announcement

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Re: Tether Critical Announcement

#261

Post by nradov »

darawk wrote: post #158
ActsJuvenile wrote: post #93

Earlier quoted context omitted.

Tether announcement on their own website mentions their Taiwan banks have frozen all international wire transfer since April 18: https://tether.to/announcement/ Tether has printed $600 million worth of tokens since, so either: 1) Local Taiwanese have deposited $600 million to buy Bitcoins through domestic wires, OR 2) Tether is lying and printing tokens out of thin air. Place your bets gentlemen.

It's perfectly reasonable to assume $600 million has flown in via Taiwan. Note that that doesn't mean that local Taiwanese have personally bought $600 million. Tether creates an arbitrage opportunity. If you have a Taiwanese bank account, whenever Tether gets out of sync, to say, 0.99, you can simply arbitrage that away and make a risk-free profit. That is what is happening. The demand isn't coming from Taiwan per se…

* risk-free (except for counterparty risk)

Re: Tether Critical Announcement

#262

Post by jameskegel »

chrisco255 wrote: post #14
pbnjay wrote: post #11

$30M here, $30M there... by all means, please keep proving to me how secure and stable smart contracts are! I'm indifferent on bitcoin, it's a cool idea but there seem to be a lot of these "hammer everything" types that are doing it a disservice across the board.

Tethers are not smart contracts. It's a separate crypto blockchain currency from Bitcoin and it claims to have a near 1:1 ratio with the USD, hence the name...it's "tethered" to the USD. This is not unlike some foreign currencies.

>Tethers are not smart contracts.

Tether is an ERC20 token. [1]

[1] - https://blog.ethfinex.com/announcing-the-erc20-tether-c84cc3...

Re: Tether Critical Announcement

#263

Post by lawlessone »

askmike wrote: post #67
ThrustVectoring wrote: post #36

Earlier quoted context omitted.

It depends on the experience level of people running them. Cryptocurrencies have a good deal of enthusiasts YOLO-ing on them, as far as I can tell.

Can confirm: I created an open source TA tool[1] for crypto markets that can function as a trading bot. If only I got a penny every time someone emailed me saying they are total beginners, looking for help installing it and hooking it up to their $xx,xxx account. [0] https://gekko.wizb.it/

interesting branding :)

Re: Tether Critical Announcement

#264

Post by kaputsmack »

patio11 wrote: post #4

If you haven't been following along, here's why this matters: Tethers is a sole-source cryptocurrency, pegged to the US dollar. Bitfinex produces it, though they're cagey (some would say outright lying at times) about the level of involvement. The primary purpose of tethers is money laundering, even more so than cryptocurrency generally. Bitfinex was cut off from the US financial system, which makes it impossible for…

What you call "money laundering" is what regulated US banks do on a daily basis.

Re: Tether Critical Announcement

#265

Post by banderman »

darawk wrote: post #80
patio11 wrote: post #4

If you haven't been following along, here's why this matters: Tethers is a sole-source cryptocurrency, pegged to the US dollar. Bitfinex produces it, though they're cagey (some would say outright lying at times) about the level of involvement. The primary purpose of tethers is money laundering, even more so than cryptocurrency generally. Bitfinex was cut off from the US financial system, which makes it impossible for…

...except that Tether long predates Bitfinex's wire issues. They're usable on many of the major exchanges (Bittrex, Poloniex, for example). Tether was explicitly created for the purpose of equalizing prices across exchanges. It's indeed possible that they're insolvent, but there is no real evidence of that, just lots of people speculating incessantly without much justification. Basically everything about the parent c…

Who owns and operates Bittrex and Poloniex? How are the licensed? Do they keep customer funds segregated from operating funds?

Re: Tether Critical Announcement

#266

Post by darawk »

thisisit wrote: post #169
darawk wrote: post #161

Earlier quoted context omitted.

There are two types of divergences for Tether, and they each mean different things. 1. USDT > USD. This is the benign version. This signifies increased demand for Tether itself. This happens when there are arbitrage opportunities between exchanges that can only be exploited quickly using Tether. This is the variety that is most common, and exactly what Tether was intended to be used for. 2. USDT not be holding Tether…

Where's the proof on your claim? From the looks of the chart here(if you need more clarity zoom from April to date): https://coinmarketcap.com/currencies/tether/#charts It is you second but is less common , USDT < USD is what is happening more. Sure there are some spikes in the opposite direction.

I'd say that that chart shows that when USDT larger, but less frequent. Look more closely and I think you'll agree.

Re: Tether Critical Announcement

#267

Post by status418 »

ActsJuvenile wrote: post #193
mrb wrote: post #150

Earlier quoted context omitted.

No. They blacklisted the stolen tethers, and all they now have to do is issue a new batch of $30 million worth of tethers. In no way this puts them in the red.

Stolen Tethers were transferred to a known Bitfinex Exchange deposit address. The hackers bought Bitcoins within an hour and took off with their loot. Reversing Tether tx does nothing to recover those Bitcoins.

No, that is what people are thinking but its not a known bitfinex address.

I think what was happening is that people are following tether issuance very closely, and every time new tethers are created they start buying bitcoin.Thats why the price went up when those $30m started to move.

I also have a hard time understanding why they need to issue fake tether to drive the price up as everybody is suggesting. They own bitfinex, they can just add money that doesn't exist to the balance books and nobody would even notice, why do it in a completely transparent way? Makes no sense to me.

Re: Tether Critical Announcement

#268

Post by trowaybloway »

darawk wrote: post #166
askmike wrote: post #155

Earlier quoted context omitted.

> Read the post, man, very first paragraph: I've read it a few times now, still can't find where they say they specifically created tether (the system) for this exact purpose. Keep in mind that the issuance of tether is not the creation of the complete tether blockchain/system (they are issuing new tether around the clock). > That's true, except you probably have never tried to actually execute that kind of arbitrage…

> I've read it a few times now, still can't find where they say they specifically created tether (the system) for this exact purpose. Keep in mind that the issuance of tether is not the creation of the complete tether blockchain/system (they are issuing new tether around the clock). > Bitfinex was cut off from the US financial system, which makes it impossible for them to clear USD-denominated wires...Their solution:…

I have no idea really but from the discussion I get the impression that one side assumes some amount of Tether could be issued at will, more or less, whereas the other seems to think to issue means to invent the ... whatever that even is.

Re: Tether Critical Announcement

#269

Post by darawk »

ActsJuvenile wrote: post #176
darawk wrote: post #158

Earlier quoted context omitted.

It's perfectly reasonable to assume $600 million has flown in via Taiwan. Note that that doesn't mean that local Taiwanese have personally bought $600 million. Tether creates an arbitrage opportunity. If you have a Taiwanese bank account, whenever Tether gets out of sync, to say, 0.99, you can simply arbitrage that away and make a risk-free profit. That is what is happening. The demand isn't coming from Taiwan per se…

No one is going to deposit 600 mill in a hacked exchange via Tether crypto-Hawala using Taiwanese shell bank accounts. People with real money would instead wire the funds to Gemini or ItBit or even a terribly managed company like Coinbase. KISS

No one person would deposit 600 mil at once, sure. But they don't have to. It's many people collectively depositing 600 mil over a long time.
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