Tether (USDT)

Yes print the imaginary dollars on the blockchain where everyone can see, when they can just edit the number in their website's database.

Genius plan.

Because they are just generating millions of dollars worth of tether and then buying bitcoin with it

>mtgox would be child's play compared to this when the SEC gets in on this.
Couldn't you avoid this by just moving your btc to a cold wallet since you seem to be happy to just hodl anyway?

>you seem to be happy to just hodl anyway?

how did you get that idea?...i sold 50% as insurance, at least i made sure i have a juicy profit, even if this whole scheme blows right now.
the other 50% is just a gamble now, i'm prepared to lose it all.

Can you tether-conspirators answer this one?

>Why print tethers on the blockchain where everyone can see, when they can just edit the number in their website's database and nobody would know?

By stack I assumed USDT into BTC, but I guess you meant BTC into actual money?

dumb investor

So you're full of shit is what you're saying? No argument.

wtf r u saying. Why tell the word how many tethers there are?

It doesnt matter how many tethers there are, what matters is how many DOLLARS there are BACKING the tethers.

I'm not saying tether is a scam, I'm saying it has the potential for fraud since it's difficult to trust Tether about its reserves. This is the whole fucking reason we have Dodd Frank and Auditors for public companies - the possibility of fraud itself is bad for markets, even if it doesn't happen.

So tell me how token burns are any less of a scam then

I have no idea how it works. Care to explain?

Unironic

is a reverse stock split also a scam

you don't have a single clue how this works, do you? the printing of new tethers happens whether the dollar influx is real or not....

>yeah, we just got an influx of dollars, honestly trust us guys!
>now we need to print more tethers, so the price of one tether stays $1, it's legit as fuck, don't ask questions.

>reverse split
so a join?

>implying countries' central banks don't manipulate the supply to change the currency value

If you dont believe tether is a ponzi youre literally braindead.
A coin that is "peggwd to usd" but says in fine print the owners dont have to redeem your tethers for usd, and after more than a year havnet shown proof of any usd reserve, where literally 1 bank statement or atatement by a renowned financial auditor wouldve taken away any concern.
Disgusting subhuman scum ruining a good thing, the crash will be epic. And I am a crypto enthusiast who would love to see a real usd pegged crypto.

>And I am a crypto enthusiast who would love to see a real usd pegged crypto.
I wish bitcoin was this...

>the crash will be epic
Have a drink while you wait for that to happen

What if I use an exchange like gdax that trades using usd rather than usdt?

Every tether is backed 1 to 1 by fiat. What is the problem?

>tether is a ponzi
do you even know what ponzi is ?
And who gives a shit if they have reserves or not, you can't withdraw usdt directly into your bank account, nor you can directly buy it

Tether is there to save your ass when everything else is crashing and it saves you the trouble of withrawing it into fiat and buying BTC back in. It also saves you from being shredded by FEES. Now say thank you.

That's a very different scenario...What central banks are doing is a sort of necessary evil to keep the economy afloat, but that's a whole different discussion. Thing is, central banks at least are backed by SOMETHING, and aren't completely untouchable. Tether is like a central bank in the wild fucking west. No regulation, no security, no promises. It's a cesspool of corruption that can only end badly for every crypto investor.

>backed by SOMETHING
Backed by what? Gold?

>Tether is like a central bank in the wild fucking west. No regulation
Avoiding regulation is the point of crypto in the first place?

0 proof, and the burden of proof lies with the issuer, who has had ample time to do so
Autistically arguing semantics
Tether will drop hard in the event of a big crypto crash unless reserves are proven and redemption is guaranteed

>tether will drop hard
So what if I use an exchange that solely deals with redeeming in USD rather than usdt?

>>Tether is like a central bank in the wild fucking west. No regulation
Wow it's like the federal reserve! Any fears I had are gone.

>Backed by what? Gold?

Gold standard was a long time ago, if we have to believe our governments then it's supposedly backed by all kinds of financial assets, loans, bonds, etc. However, the biggest factors are probably trust/ignorance by the people and economical prosperity.

>Avoiding regulation is the point of crypto in the first place?

That's the ironic thing, crypto's purpose is to avoid these central bank scenarios. By introducing an entity like this we're even worse off than before. Centralizing an unregulated system is asking for big trouble.

I believe that crypto will take a big hit, so everyone will be affected. During bull runs, everyone's a genius. But during bears, more scams will come to light and insolvencies too.
I just dont understand everyone here defending usdt. That shit is gonna destroy your gains, too. Unless you are part of the small group of ppl running this scam, who will make off with millions, which I doubt. Or they already cashed out? Or just trolls.

>supposedly backed by all kinds of financial assets, loans, bonds
Supposedly yes but I find that very dubious. Look at the Chinese government. They just price the Yuan renminbi as they feel like it. And they're not the only ones. Japan has a long history of printing currency. Besides, all of the crypto currencies are priced solely by the supply and demand, therefore trust and faith.

Right, but since I'm talking about a different exchange, as well as usd vs tether that I will have some time to liquidate as usd is not gonna have nearly as flash of a crash

I’m on the fence here...

Seems like: USDT appear out of thin air as a place holder but are not backed by anything... the entire thing is a good-will/faith based thing... seems easily exploited. Potentially someone within the company which controls the exchange can introduce liquidity stabilization via creation of tokens... of an arbitrary number of people holding a crypto(s) of an agreed upon value want to purchase USDT tokens, those people are essentially saying they’d rather carry this artificial place-holder token rather than their “real” crypto... so the seemingly more real crypto purchases the token placeholder and those tokens can than be reused to purchase other real cryptos ... but with the agreed and known risk that you won’t get the same crypto amount back that you sold...

It could go either way honestly. But I will say this:

Go to any real bank... and at any one time they only have 10% cash value of the amount they have on loan... and this is an acceptable and lawful practice in the US, Europe and much of the world (ie fractional reserve).... With Tether, I can assume there is fractional reserve... but I don’t think it’s anywhere near that low... maybe 60-70%...

And finally, Tether doesn’t exist outside the damn exchanges... you can withdraw it into a token wallet, but for what? It’s pretty useless and a place-holder

The value of Tether is primarily backed by the existence of an exchange... the more “real” crypto currency is on the exchange, the greater the value of that exchange as a liquidity economy, the more stable in value the token is....

In the end, Crypto itself has always been held up by the faith of its users... and it’s users are human.

> Assume
The value of Tether is 0. When Tether DO collapse, you'll see people panic BUY BTC or anything that you can buy with Tether, which will initiate a final pump. After that, since it's harder for actual REAL money to enter, you'll see money flood out of the market because you're not jacking up the price of BTC WITH Tether anymore.

Its much easier to pump the price of BTC now coz Pajeet can only pump its price with his real money, while Finex can pump the price with fake money, which through arbitrage will inevitably make Pajeet's price go even higher. What happens when Pajeets all run out of money to pump? What happens when they wanna cash out? Who's paying the REAL money?

My nr.1 rule when trading is: always bet on the other guy's greed. Someone who can make millions out of thin air WILL abuse that system at some point, until it crashes. Just read up on ANY fiat system in history.
Finex already has, one of its executives is on record boasting doing margin trades on his own exchange!

Bitfinex owns Tether as a project, right?

I mean, this could be a Black Swan event if it got ugly.

0 proof, just Veeky Forums rumors.. no reputable board is saying this

>0 proof, just Veeky Forums rumors

What are you asking for proof of? That Bitfinex has printed tethers out of thin air? That seems self-evident.

It is obvious they are operating some kind of fractional reserve banking. The question is, at what leverage?

The idea of one USDT being worth one USD is fundamentally flawed as it does not factor in the risk that the USDT can not be redeemed for USD.

They've said it's not a fractional reserve. Either way they're sending the truth since right now it would be a stretch to say they have a reserve.

So.....would you say Bitfinex/Tether scheme is the Mt. Gox 2.0?