How long until Poloniex and ButtFinesse cause a crash with their idiotic Tether meme?

How long until Poloniex and ButtFinesse cause a crash with their idiotic Tether meme?

Other urls found in this thread:

tether.to/
tether.to/announcement
twitter.com/AnonBabble

Can someone explain USDT tethers to me? Can you exchange USDT for fiat cash?

tether.to/
Suspected to be operating a fractional reserve.

Essentially a reverse GOX situation.

Banp

Bump.

Has anybody used USDT tether to convert their coins to USD$ fiat?

You currently cannot do that until Tether resolves its' banking issue. Only Taiwanese banks are operating with Tether.

So everyone dumps their tether for alts, causing the massive increase.

Fortunately, unlike Gox, Tether is fairly transparent and continues fully claiming that they have 1:1 deposits on their Tether. Gonna be fun to see how this plays out.

Expect a massive correction across the board once the situation resolves.

This is pretty interesting, who will that correction primarily effect? People holding Tether? Or the entire Altcoin market?

Any methods of avoiding potential fallout here?

Entire altcoin market, since right now people would rather have anything BUT tether if they actually want to withdraw.

Therefore USDT absolutely FLOODS the market across the entire spectrum.

This lets people sell their alts at higher prices if they're willing to short alts and expect Tether to recover. So, this puts tether at a "discount", currently trading at about 92 cents, and all alts rise because of Tether being dumped. The exchanges using Tether instead of USD in turn cause other exchanges to rise, even if they're operating with real dollars, to correct from arbitrage.

End result: Alts being pumped = shorting tether. Tether recovers = alts get dumped for Tether, USD finally withdrawable.

This.

Exactly. Hence why you need to use stop losses.

I'm mostly in USDT but with stop losses on everythign else because as soon as it corrects, USDT will literally surge to $1 in a day and everything else will appear to tank.

If USDT comes back online, which it could any day, then everything will appear to tank except USD. That's why I'm using USDT with stop losses on other exchanges.

That's part of the reason for all the rallying in BTC and other altcoins lately.

If, however, USDT declares bankruptcy it will shoot to 0 in a day and I'll be fucked.

Not a bad idea to use stop loss buys here either then, so if the price goes above a certain point relative to USDT you know when to buy it.

Basically if you're trading on any exchange that doesn't have USDT you're going to get anally fucked. With USDT you can use stop loss sells if USDT goes up and stop loss buys if USDT goes down to 0. Good insurance.

wait wat

Decent strategy, ends up looking like you're going for a short term arbitrage between USDT drop and altcoin market rise.

It's not exactly short term if it lasts a few months though.

But it's more like insurance against the huge shit the entire crypto market is about to take as soon as USDT either goes online again or dies completely.

And newfags will have no idea what hit them cause they have no idea how much even the USD prices they can buy at now depends on the USDT scandal.

Poloniex ? You mean PooiNLoo

if usdt declares bankruptcy, all the rest of alts suffer too?

give me shit to read on this pls

It's basic math.

tether.to/announcement

Polo/BFX do not use USD, they only used USDT. When USDT is no longer redeemable for fiat, what do you think will happen? People holding USDT that want their money NOW pay out the nose to get it NOW.

This is an interesting scenario because if USDT bankrupts, there's no real reason to expect alts to tank with it since it's currently the hedge AGAINST Tether. I'm not sure if it will affect altcoin prices much. If you're holding on to alts, chances are you WANT Tether to tank. But if it does, expect Poloniex and BitFinex to disappear along with it.

Really appreciate the info here, Anons.

I still don't completely understand. Would somebody trading with BTC into Altcoins then back again get fucked over here? Or would they just see an overall value drop across the board.

BTC and altcoins are in the same boat when it comes to Tether. They are all rising because of Tether devaluation. If Tether corrects to $1, all alts and BTC have to correct downward as well.

I see... maybe i'll check everything into NEM and harvest for a while. Hah!

Especially BTC.
You will see an overall drop accross the baord because a ton of people used USDT and moved out of it out of fear it would crash. If it goes back, they will sell alts and go back into it. Also, it required people to transfer to a different coin to withdraw their earnings rather than withdrawing with USDT. Once they can do that again, they will do that to avoid the risk of going all in on another coin just to withdraw it.

is there anything i can read on the matter? also, what are the chances it'll go bankrupt vs. it coming back?

I don't know I've been asking for weeks.

Google USDT and Tether and just read. Don't ask us to hold your hand.

Literally nobody knows.

Read the announcements on the Tether.to site itself and see what they say.

If we knew, there wouldn't be all this fluctuation/slow change, it would be a sharp drop in one direction or the other. It's a gamble, you make your own guesses based on what has been determined.

The tether announcement is a good summation of what's going on.

so, if tether comes back, we can expect prices of alts to retract back to what they were around april 18th

No one can predict exact price, but it's almost guaranteed that they will all trend downwards.

Get your rage pepes ready boys.

bumping for more eyes on this

I really dont think people are using Alts as a safe hedge against USDT. Thats just fucking stupid. Theres nothing safe about Alts at all, even BTC can wildly fluctuate and thats the gold standard of crypto, nevermind Alts.

Why the fuck would you use tether

Convert to btc and cash out on gdax

Stupid fucks

Third worlders who can't use coinbase/gdax.

>paying fees and risking an extra step of volatility

You really don't get it.

ALTS are strictly kept alive by liquidity from Bitcoin. In fact most altcoins are nothing more than confidence scams for developers and early adopters to seize BTC from the naive and retarded.

Shitcoins are most certainly NOT a form of hedge against the Tether bullshit.

All it takes is one large exchange to go tits up and this USDT business appears to be it. Altcoins will literally die off and BTC goes back to $280.