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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

#71

Post by arthurcolle »

Gortal278 wrote: post #60
javajosh wrote: post #54

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…

It doesn't have to be an insider

it's a very small group of people with pretty well-known dubious banking connections. I won't rehash it but the CEO of their main bank is some rando with pretty poor spelling.

I doubt anyone beyond the inner circle (I guess maybe the exec assistant of the aforementioned rando might know something interesting) would know anything interesting.

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

#72

Post by arthurcolle »

Traster wrote: post #55
exdsq wrote: post #39

Earlier quoted context omitted.

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.

Well, if Tether isn't backed by dollars, then there's some pretty big questions to answer - for example: "When people buy tether using fiat currency, they hand $1 to bitfinex, and in return get 1USDT. Where did that real $1 go?"

back to the money store (https://vimeo.com/215534945)

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

#73

Post by Marazan »

shoo wrote: post #11
graeme wrote: 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…

not clear if it is the easiest target to short, given that many people who use tether are fairly skeptical about how/if the tokens are backed by assets but use it anyway (if the recent Bloomberg story is accurate).

It is a terrible target to short as you can only do it through exchanges that deal in Tether. Exchanges that can manipulate your position and liquidate you if they feel like it. Exchanges that benefit from Tether existing.

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

#75

Post by PeterisP »

filvdg wrote: post #4

Disclosure: Hindenburg Research does not hold positions, either long or short, in Tether, bitcoin or any cryptocurrency at the time of this press release.

The expectation is that they will obtain large and valuable positions (either long or short) upon obtaining this information which is not (yet) known to the general public.

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

#76

Post by UncleOxidant »

JumpCrisscross wrote: post #63
javajosh wrote: post #54

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…

> Is it illegal for a private person to offer to pay someone to illegally snitch on an illegal operation? It's not illegal to pay someone for information. If you induce them to violate an NDA, yes, it could be. But given the question "under what jurisdiction does Tether really operate" is a debatable question, I'd say it's probably risky but fine. (If you trade on that information, it could be a different story.)

> 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 it seems like the NDA shouldn't hold any power.

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

#77

Post by miohtama »

JumpCrisscross wrote: post #68
miohtama wrote: post #59

Earlier quoted context omitted.

Likely in the case of a bank run, Tether cannot redeem even a cent because their organisation is unable to serve any customer outside few selected one (no staff, no processed). However the damage to retail US investors should be quite well contained, as I do not feel they have significant Tether holdings. It is mostly (shady?) professional traders (Alameda, Celsius) and offshore (China) that use Tether. Tether is 50%…

> the damage to retail US investors should be quite well contained, as I do not feel they have significant Tether holdings This is my understanding. The U.S. regulatory apparatus appears to have deterred Tether from getting too involved here. China, too, seems to have taken the hint.

Also in the US you can use real ACH dollars, not Italian plastic surgery dollars.

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

#78

Post by pxue »

tppiotrowski wrote: post #74

How can one profit from a crypto bubble? I’ve heard of an ETF for shorting Bitcoin but never saw any specifics. Can anyone provide a reputable brokerage for shorting crypto currencies?

short sell MicroStrategy (mstr), they are pegged to crypto because they decided to hold large amounts of crypto as a corporation

New crypto ETF is also right around the corner. There will definitely be futures on that.

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

#79

Post by paulpauper »

hmate9 wrote: post #48
paulpauper wrote: post #30

There has been nothing but Tether doom and gloom since 2017 and yet here it is still at 1.0000 If anyone thinks this will drop, now is the opportunity to short, I suppose.

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.

you could probably fund this by selling some far out of money bitcoin puts.

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

#80

Post by superfunny »

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?

Or that the person from whom you borrowed Tether to put on your short position won't demand it back while it is collapsing.
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