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$1M bounty for details on Tether’s backing

hindenburgresearch.com

271–280 of 326 posts

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

#271
post #237

Earlier quoted context omitted.

Read OP's point, he/she claimed that a 5% drop in the price of Bitcoin would make Tether literally insolvent, that did not happen when BTC went from 60K to 30K

Read MY point, please prove (or show any evidence) that it did not happen. You are claiming something that there is literally NO EVIDENCE of, while vast piles of available evidence points to the very opposite. Tether is, has been, and will continue to be insolvent. The only question is when people will notice.

> Read MY point, please prove (or show any evidence) that it did not happen.

It does not work like that, you are making the claim not me. You have to show the evidence.

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

#272

Earlier quoted context omitted.

> Shorting Tether is a great play Why do you think there will be a functioning market to pay you out if and when it collapses?

You get paid immediately when opening a short position

> You get paid immediately when opening a short

In what? By whom? If they go bust, you’re just another claim on a bankrupt estate.

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

#273

Earlier quoted context omitted.

Precisely. It's too risky to actually short the crypto complex because if the Tether fraud is true, then they can pump it to $100k or $1m or whatever they want. But if they contribute to the unwind of a fraud of this scale, they will go down as heroes.

If people aren't buying as much Bitcoin at $100k+ (I assume you are referring to Bitcoin), then what will cause it to go to $1m? I don't think they can have a guaranteed pump like you are saying.

If a fraudulent Fed is fabricating Tethers, and some people are buying it, the price is a ruinous fiction to a short. For shorts, delusions matter in a way that they don’t for ride-it-out longs.

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

#274
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…

Yes, he has a website where he pats himself on the back for all of the good calls he's made. I've seen it. Ask yourself, why does a short seller need public confidence at all? It's because they want to be able to move the stock price when they publish something.

This argument has been done to death. I personally find the conga line of analysts and hedge fund managers who appear on CNBC and talk up their book of shit picks a lot worse than the best short selling shops.

There are so many bad companies that are public today, they really need somebody nipping at their heels.

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

#275

Earlier quoted context omitted.

Yes, now that they've been caught claiming to hold 1 USD per Tether without doing so, they claim it's only stuff worth (in their estimation!) 1 USD per Tether. And still refuse to provide any evidence that they are doing so. Please stop defending them.

I generally agree, not sure why anyone would choose to use Tether when their are alternatives like USDC. However I still think it is important to properly represent Tether's current claims.

Drug/arms/human trafficking operations can have easier time cashing hundreds of millions via shady Tether than US-based audited and KYCed USDC.

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

#276

Earlier quoted context omitted.

Each scam is draining some money from the market. All these scammers are siphoning of real money from the ecosystem each time. Fanatic and devoted fans there maybe, however they don't have limitless fiat money to play with. In the recent past, new found mainstream popularity has fueled inflows into all kinds of crypto products sustaining the strong bull runs despite significant and clear risks. This popularity has li…

How do you feel about stocks that have completely unrealistic P/E ratios? Is that not the same speculation that happens in crypto? And yes, I agree, prices don't go up unless people are putting more in, but I'm just saying that crypto is not unique here. Yes, traditional companies can liquidate their assets, but my point is, a lot of what's going on in stocks, at least ones greatly differing from traditional P/E rati…

There may not be $70 billion actually in tether, but some fraction of that people have paid them in exchange for the coin, a good chunk of that is already mis-managed/lost. A bank run would lose even more.

Issuing more tokens than the money they have is basically inflation and devalues all holdings.

Yes non profitable without a clear path to profit, or pre-revenue companies is a lot of smoke for risky value, however in most revenue generating companies there is underlying asset which generates some cash every year and that is always worth something.

With currency everything is abstract and depends only on trust in the system for its intrinsic value.

This is why U.S. is able to use the reserve currency status of dollar and issue a lot of new currency without equivalent inflationary pressures other currencies would face, they are basically leveraging trust in to generate seigniorage.

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

#277
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…

>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…

This is like saying Z$ should make every fiat speculator or holder very nervous. Crypto is huge. You can be involved without coming anywhere near USDT.

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

#278
post #124
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…

Fair and square? It was a completely new failure mechanism found in one of the first major smart contract deploys. BTC had a similar early-phase bug that minted tons of coins by the way, that they also had to “claw back”. At least pretend to be unbiased.

Not even the same league of event. The value overflow incident was a flaw in the protocol implementation itself.

https://en.bitcoin.it/wiki/Value_overflow_incident

The DAO hack resulted from a poorly-written contract. Concerns about the quality of the contract were ignored by the team. The DAO itself wasn't even part of the Ethereum protocol, just an application running on it.

The DAO was like a Bitcoin transaction that spent all output value to miner fees, which has happened a lot. But at no time did that ever result in a rollback of history.

The response to the DAO was the Ethereum community slapping a giant asterisk on the motto "Code is Law." And the community is quite all right with that.

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

#279

Earlier quoted context omitted.

> If you induce them to violate an NDA, yes, it could be. Is violating an NDA illegal ? I'm not a lawyer and I don't play one on TV, but I don't think violating an NDA is illegal as in you could go to prison for violating a law. Yes, it could open you up to legal jeopardy as in a lawsuit which could be expensive, but I don't think any laws are violated. And if you're violating an NDA to expose some corrupt practices…

Never thought about this, but I guess you might be on the hook for fraud if you violated an agreement for profit. That is, an employee violating an NDA for profit might be considered committing fraud against their employer. It's strange - Tether seems shady but I don't think Hindenburg's offer is on firm ethical or legal ground. What if Hindenberg offered $1M for access to a private list of donors to a [prominent abo…

> That is, an employee violating an NDA for profit might be considered committing fraud against their employer.

I don't think so. Fraud would require an element of deception. Corporate espionage seems like a more probable avenue. IANAL, so I'm not sure who bears the liability here: the buyer, the seller, or both.

> What if Hindenberg offered $1M for access to a private list of donors to a [prominent abortion rights organization]?

This isn't equivalent. They're buying information, not selling it. Specifically, they're buying evidence of illegal acts.

Also, personally, I think there's a wide gap between the reasonable expectations of privacy for a business and an individual.

> But now that I think about it, why doesn't every successful private contract enforcement action end in a public prosecution for fraud?

There's usually not an intent to deceive, so it's not a crime. Also, the contract should specify the damages for violating it. The victim agreed to those penalties at the time of signing, so it wouldn't generally be in the interest of justice to add further penalties unless the behavior was so egregious as to override the victim's choice of penalty.

The accused can also often afford their own lawyers, which makes securing convictions a lot harder.

And there's a self-reinforcing penalty. If you have enough proof to get a conviction, you have enough proof to leak the leaker's name and make them unemployable.

And the criminal justice system is already stressed. These would likely end up getting plead down to something insignificant, because our justice system depends on most cases not going to trial.

There just isn't much to add from a criminal prosecution, and it would cost a lot.

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

#280
post #208

Earlier quoted context omitted.

Correct. Tether is a giant scam as I and many others have said before: [0] Won't be surprised to see the scam finally unveiled and to cause a seismic crash in the crypto markets. I would start packing my crypto holdings out of the market real soon™... Things are getting quite, unstable and euphoric once again. [0] https://news.ycombinator.com/item?id=27960613

Why would a collapse of tether cause a crash in the crypto markets?

It could spark a liquidity crisis. Tether is a mechanism for converting crypto to USD, and if there's a run on Tether and they run out of USD for whatever reason, it'll spiral into a run on other exchanges, if people aren't able to change their crypto back into USD, the value of that crypto suddenly vanishes
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