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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

#281

Post by jzymbaluk »

rvz wrote: post #208
garyclarke27 wrote: post #182

Tether is obviously not backed 1:1 by USD as previously claimed. Now the dodgy piechart informs us that it is backed mainly by corporate bonds and loans - if true I would guess mostly to related companies. A recent Bloomberg article says they have been lending Billions to Chinese property companies! Eventually enough of the gullible fools will realise that the Emperor has no clothes, then there will be a run on Tethe…

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

Part of me is trying to come up with ways I could short this incredibly irrational market™, but I'm reminded of the saying that the markets can stay irrational longer than you can stay solvent

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

#282

Post by TimeBearingDown »

vkou wrote: post #215
hackingforfun wrote: post #202

Earlier quoted context omitted.

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.

They’d prefer holding USDT to BTC.

In this event we describe though, they may prefer selling for BTC or other cryptocurrency.

They may not have the option of selling for fiat currency, as well, at least not right away.

The assumption that an exit from Tether would lead to an exit from BTC is not necessarily well founded.

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

#283

Post by TimeBearingDown »

qeternity wrote: post #238
hackingforfun wrote: post #233

Earlier quoted context omitted.

They also may cash out to another fiat currency, no? I also am not sure I agree that they would all even cash out to fiat. I was asking what are the guarantees that they would cash out to USD, considering that why they may be holding USDT in the first place is to avoid US regulation? Something else to consider is that Tether is also more popular outside of the US. I'm just saying that I think it's an assumption that…

It doesn’t matter what fiat the sell into, all that matters is they are selling BTC. It will go down against all pairs.

They would be selling USDT.

Especially on short notice, with Tethers sitting on an exchange that may not have access to fiat, they will likely sell to BTC or ETH at least at first.

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

#284

Post by TimeBearingDown »

graeme wrote: post #181
zionic wrote: post #127

Earlier quoted context omitted.

Exactly. Tether has some amazing alternatives. DAI for example.

DAI is critically dependent on USDC. USDC recently received a Wells notice from SEC and had to amend their reserves. Still weird behaviour from them overall: they don’t disclose what their short term commercial paper is, its rating or how much of their cash equivalents it us. Just today in the financial times Tether claimed USDC also issues USDCs backed by crypto. And they have funny printing patterns: whenever Tethe…

Source for Dai being critically dependent on USDC?

It’s been around years before USDC and maintained its peg through the 2017 collapse, if I recall.

I know it has changed over time (multi-collateral Dai).

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

#285

Post by staticautomatic »

aazaa wrote: 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…

“ Ethereum allowed a claw-back of funds lost fair and square to a defective contract. Where is Ethereum now? Oh yeah, near an all-time high and a market cap approaching half a trillion dollars.”

Another interpretation is that courts customarily invalidate “defective” contracts, and therefore the “claw-back” actually inspires confidence by demonstrating consistency with contract law norms.

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

#286

Post by pepoluan »

chii wrote: post #258
cdolan wrote: post #118

Earlier quoted context omitted.

They were right about Nikola and Lordstown Motors. I’m a Hinden-believer I suppose

you don't need to be a faithful believer - evidence speaks for itself. If hindenburg presents a short thesis, they would need to provide evidence in their papers. No one should be blindly believing them, just because they have a good past record.

> No one should be blindly believing them, just because they have a good past record.

True. And that is why they don't act on just 'suspicion', but willing to pay to dollars for information.

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

#287

Post by Abrownn »

lazyeye wrote: post #6

Worth reading for some background.. The $94b crypto mystery https://www.afr.com/wealth/investing/the-94b-crypto-mystery-... 12ft.io gets around the paywall. My favourite quote.. "seemed to be practically quilted out of red flags.."

Fantastic read, thank you.

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

#288

Post by singularity2001 »

bleachedsleet wrote: post #277
fnordfnordfnord wrote: post #94

Earlier quoted context omitted.

>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.

You think the shockwave of the tether collapse will leave any crypto unaffected? What if some trading platforms fold?

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

#289

Post by singularity2001 »

aazaa wrote: 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…

Just a note of wording: Almost everyone is a "non-user", speculators probably vastly outnumber the true "users" (money transfer, laundering, ... what else?)

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

#290

Post by singularity2001 »

JumpCrisscross wrote: post #70
hmate9 wrote: post #48

Earlier quoted context omitted.

Shorting Tether is a great play. Either everyone loses faith and nobody trusts them anymore or.... it stays at $1. You are not going to lose. You just have to pay funding fees for your short which on FTX is around 4% a year. Do you think there is a great chance that Tether is a massive scam and will find its doom within the next 25 years? My answer to that is yes.

> 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 can short the proxies: Coinbase etc
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