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I mean, yeah, fuck those guys, but how is any kind of enforcement to be done on how this information was obtained?
Sysadmin at Microsoft or google with access to their emails may be mighty tempted by this eh?
Earlier quoted context omitted.
> Even if the origin, operation of Tether is highly suspicious: if it functions, is widely adopted and does what is expected … may last longer than people think. I think you're right about this point, and I've been trying to imagine what might cause Tether to collapse - you really need a run on the bank situation triggered by something causing them to become insolvent.
A run on a bank can make it insolvent? I thought that insolvency was when they don't have the assets to cover their liabilities. My understanding of a bank run is it happens when a bank is solvent, but doesn't have enough in reserves - liquid, short term assets. But if they simply don't have at least 100% of their liabilities in assets, then they are bust because they can never pay people back barring a miracle.
Only when we find out!
Is it illegal for a private person to offer to pay someone to illegally snitch on an illegal operation? Do two illegal things cancel out?
1 - https://www.investopedia.com/terms/c/commercialpaper.asp
2 - https://tether.to/latest-assurance-opinion-confirms-tether-f...
Last week CFTC fined both Tether and Bitfinex $42.5M for allegedly not holding enough reserves and colluding together. https://www.cftc.gov/PressRoom/PressReleases/8450-21 Seems like a fairly small fine in grand scheme of things no? If the critics are right and $70B+ supply is just made up paper money, then it'll be huge losses for all Tether holders. I'd conjecture it would tank the entire crypto market - and possib…
Or people will accept it as paper dollars and carry on regardless. Honestly this wouldn't surprise me - it'll just be a representation of the dollar that things use as an intermediary step.
I think the skeptics are probably right, but we're at the point where real information needs to be uncovered.
Disclosure: Hindenburg Research does not hold positions, either long or short, in Tether, bitcoin or any cryptocurrency at the time of this press release.
I wonder why this Reaserch firm is offering such a substantial bounty for information on Tether. What's in it for them? Where will this money come from? From their site they provide an answer (and even a "track record") [1]: > We look for (...) man-made disasters floating around in the market and aim to shed light on them before they lure in more unsuspecting victims. Hence it seems they're doing it for the bennefit…
“It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest. We address ourselves not to their humanity but to their self-love, and never talk to them of our own necessities, but of their advantages” -Adam Smith
https://www.goodreads.com/quotes/68664-it-is-not-from-the-be...
As always, Matt Levine is shockingly informative: https://www.bloomberg.com/opinion/articles/2021-10-07/matt-l... Key quote: 1. You get a bunch of Bitcoins. 2. You slice them into junior and senior claims. 3. You sell the junior claims to people who want levered Bitcoin: people who want margin loans against their Bitcoins, etc., who want to gamble on Bitcoin without putting up too much cash. 4. You sell the senior cl…
Tranching is a thing. It's fine. It works, if you don't pretend AAA-rated securities, which have--and historically had--a very low risk of losses, are both safe and liquid. If tranching were all Tether were doing, it would just be fraud. You can't sell a senior tranche on a pool of assets as a fully-backed security and call it a day. But whatever, Tether did that and more, nobody cared, we're on the next tier of the…
Tether is 50% of crypto trading. Tether stopping would case quite interesting escape into either Bitcoin or some other liquid widely available pair (ETH). Prices would shoot up until real dollar offramps can pick it up. Long term USDC, USDP snd other more robust stablecoins can pick up the slack. Tether is not too big råto,fail, though is massive.
Sounds like they're offering to bribe an insider to disclose specifics about the "commercial paper"[1], which is presumably how a company like Tether would make most of its money. That is, taking advantage of the time-value of money over short periods of time ( Note that Tether looks shady at first blush, with a link to "Proof of Transparency"[2] that is content-free. I also find it sus that their job listings only l…