Bitfinex will no longer treat Tether as 1:1 conversion
1–10 of 54 posts
Re: Bitfinex will no longer treat Tether as 1:1 conversion
#2A link direct to the announcement for the curious: https://www.bitfinex.com/posts/319
Re: Bitfinex will no longer treat Tether as 1:1 conversion
#3It's not like Bitfinex has ever allowed anyone to cash out their USDT for USD (despite claims to the contrary) so maybe this is just them coming clean about that fact?
They've also removed (false) claims about being audited from their FAQs section[0]
[0] https://tether.to/faqs/ vs https://web.archive.org/web/20180628141947/https://tether.to...
Re: Bitfinex will no longer treat Tether as 1:1 conversion
#4Oh so all of those who had kept money as usdt will have their money devalued. Nice
Remember, the longer you stay the more money you can lose
This will be fun to watch
Re: Bitfinex will no longer treat Tether as 1:1 conversion
#5So basically, any slight deviation from 1:1 is similar to a transaction fee?
Re: Bitfinex will no longer treat Tether as 1:1 conversion
#6Can someone explain why this is important?
Re: Bitfinex will no longer treat Tether as 1:1 conversion
#7Oh so all of those who had kept money as usdt will have their money devalued. Nice Remember, the longer you stay the more money you can lose This will be fun to watch
Unless they've already changed the exchange rate, it looks like they cashed out everyone's Tether balances to fiat?
Any Tether deposits initiated before 14:30:00 UTC on the 27th of November will be credited to the user's fiat wallet balances
Re: Bitfinex will no longer treat Tether as 1:1 conversion
#8So basically, any slight deviation from 1:1 is similar to a transaction fee?
No- the market will buy and sell Tether at the market-discovered price- which means it's no longer centrally "pegged" by Bitfinex.
This could be because they want to better take advantage of the difference in price themselves, knowing that their books are good and that the token is backed- or, following the narrative, it's because the token isn't 1:1 backed. Either way, this further erodes trust in Tether
Re: Bitfinex will no longer treat Tether as 1:1 conversion
#9Can someone explain why this is important?
There's a narrative that Bitfinex/Tether drove up the price of crypto fraudulently, and that USDT is not 1:1 backed by fiat.
Not weighing in on it either way, but issues with Tether have been a sword of Damocles of the crypto market for a while. Bitfinex'd on Twitter[0] has all sorts of speculation if you want to get into it.
Re: Bitfinex will no longer treat Tether as 1:1 conversion
#10Oh so all of those who had kept money as usdt will have their money devalued. Nice Remember, the longer you stay the more money you can lose This will be fun to watch
The actual announcement was linked above. Any time before the cutoff Bitfinex will continue to support USDT:USD at parity, and all USD and EUR deposits will be denominated in the fiat currency, not the tether equivalent.