I know there are a lot of crypto skeptics here, but if you believe in Bitcoin more than Tether at least then you should buy Bitcoin...if Tether does indeed fail Bitcoin will almost certainly spike past 2017 highs.
Why would bitcoin spike?
Tether loaned USDT to investors and illegally traded in New York, says NYAG
51–60 of 133 posts
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#52Earlier quoted context omitted.
Yeah, Bitfinex and Tether won't have anything to worry about... ...as long as they don't want to have USD denominated bank accounts, or transact with USD, or do business with people with USD denominated bank accounts. Which, of course, they do. If you touch the US financial system in any way, or if any of your counterparties do, or if your counterparties want to have other counterparties that do, then you need to car…
What are your thoughts on Gemini?
Gemini and Coinbase are on the forefront of legitimizing cryptos. They go out of their way to cooperate with American authorities, which is a good move for their business model. Contrast this with a crypto exchange based outside of the US that would loose their clientele if they worked with the American government in any way. Why you ask? Do research about Americans trying to open bank accounts in Europe. Basically under the new laws banks in Europe prefer to reject Americans rather than try and go through all the extra reporting involved.
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#53USDT has a strong following in APAC countries. Also for some crypto users part of its allure is that it’s vaguely sketchy - it means they are less likely to have their funds blacklisted, a feature which Tether maintains the ability to do but has never enforced as far as I’m aware. If you are getting into the space now USDC is an audited stablecoin backed by Coinbase and Circle which has the second highest issuance af…
Do you want to disclose that work for Circle? So maybe your opinion might be as like, more than a little biased?
Not OP and not a Circle employee but he is absolutely right if, especially if you are a US citizen.
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#54"Loaned USDT" in this context just means created tether and gave it before the wire transfers went through (but presumably these pending wire transfers count as assets, especially considering they can blacklist tokens at will). Not exactly damning evidence.
Also it seems like "illegally traded" just means that NY companies set up foreign shell companies to skirt NY regulations? I don't see how this is iFinex's fault either tbh
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#55USDT has a strong following in APAC countries. Also for some crypto users part of its allure is that it’s vaguely sketchy - it means they are less likely to have their funds blacklisted, a feature which Tether maintains the ability to do but has never enforced as far as I’m aware. If you are getting into the space now USDC is an audited stablecoin backed by Coinbase and Circle which has the second highest issuance af…
"vaguely sketchy" What does that mean? That doesn't sound like a positive thing.
Apparently, there originally was something like 60 cents backing each $1 of tether. Then bitifinex needed the money to cover its legitimate business, so they swapped the tether dollars with an equal amount of dollars in a frozen bank account. And the account was frozen because the _bank_ it was deposited in has had all its accounts frozen by numerous investigating governments. After the swap, Bitfinix then had to be loaned $900 million to back tether, with shares in its business as collateral.
Sketchy is a generous characterization of tether. Tether is fraudulent.
https://www.bloomberg.com/opinion/articles/2019-04-26/things...
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#56I know there are a lot of crypto skeptics here, but if you believe in Bitcoin more than Tether at least then you should buy Bitcoin...if Tether does indeed fail Bitcoin will almost certainly spike past 2017 highs.
Why would bitcoin spike?
Since it's very difficult to convert USDT into real USD, if people were desperately trying to exit their Tether positions, they'd likely do it by changing for other cryptocurrencies like bitcoin.
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#57USDT has a strong following in APAC countries. Also for some crypto users part of its allure is that it’s vaguely sketchy - it means they are less likely to have their funds blacklisted, a feature which Tether maintains the ability to do but has never enforced as far as I’m aware. If you are getting into the space now USDC is an audited stablecoin backed by Coinbase and Circle which has the second highest issuance af…
If you want to buy cryptocurrency, why not just buy Bitcoin? In contrast, I don't see a worthy reason to sell US dollars for any stablecoin.
People use it to transfer between crypto and FIAT (representation).
You can park it outside the crypto market, ready to buy back into crypto at any moment.
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#58USDT has a strong following in APAC countries. Also for some crypto users part of its allure is that it’s vaguely sketchy - it means they are less likely to have their funds blacklisted, a feature which Tether maintains the ability to do but has never enforced as far as I’m aware. If you are getting into the space now USDC is an audited stablecoin backed by Coinbase and Circle which has the second highest issuance af…
seibelj has a link to his twitter account in his profile. On that account, its quite clear he works for Circle. IMO, it's pretty unethical to promote this type of investment without revealing that conflict of interest. It's also par for the course with crypto coins.
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#59Earlier quoted context omitted.
What are your thoughts on Gemini?
Gemini and Coinbase are on the forefront of legitimizing cryptos. They go out of their way to cooperate with American authorities, which is a good move for their business model. Contrast this with a crypto exchange based outside of the US that would loose their clientele if they worked with the American government in any way. Why you ask? Do research about Americans trying to open bank accounts in Europe. Basically u…
Most crypto is traded outside of the US though; most of the volume is on Binance and Bitmex. In this sense they cut themselves off from many customers. The advantage of their business model seems to be that with less competition from other US-law-abiding exchanges (because there are so few of them), they can charge much higher fees: Coinbase fees are higher than most large non-US exchanges, and Gemini fees are insane, something like 1% per trade.
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#60Tether has been an openly fraudulent enterprise since the beginning. Pretty much anyone with any experience in financial securities and even passing knowledge of crypto was raising red flags, including on this website. Never wanna blame the victim, but kinda feel like anyone with any due diligence here was just hoping for casino rallies and didn't believe what they were being sold.