This doesn't look good. Some people are sounding the alarm that Tether (USDT) is being used to artificially prop-up the price of bitcoin. Seems something similar (using Fiat) happened back in 2013 with a trading bot:
"a trader dubbed ‘Willy’ bought Bitcoins from traders by ‘crediting’ the sellers’ accounts with fiat currencies that, in many cases, could not be withdrawn."
This article details how Tether is operating as a fractional reserve and is being lent out by Bitfinex for margin trades:
>Some people are sounding the alarm that Tether (USDT) is being used to artificially prop-up the price of bitcoin These people are retards who sold at 1k or the bottom of the china fud dip. Tether is fine and poses no threat to the market regardless of what baseless bullshit conspiracy theorists throw around.
Jayden Cook
These people genuinely believe that Willy and Markus could never happen again and will never happen again even though there is every reason that it should happen again. This is what delusion looks like.
not working very well either. It's kind of pathetic how much energy is being expended on this with so little result, actually.
Jacob Sullivan
Can someone explain how bitfinex crashes if no one can withdraw fiat from it? Say USDT goes to 0 and gets delisted everywhere... so what? How does this impact anyone who isnt holding USDT? I always just thought of it as a convenient peg for trading and hedging purposes, not as real US$ for long term holding. Lots of currencies around the world are pegged to the $ at a fractional reserve basis, most of the Carribean for example, but no one thinks Aruba $s are US$s.
Aaron Jenkins
So, when should we sell??
Luke Evans
It's pretty much the crypto equivalent of a ponzi scheme, and a great one to last this long
Sebastian Jones
The problem is that with cryptocurrency we are in uncharted financial territory. The situation is ripe for fraud. Buying fake money (BTC) with fake money (USDT)? No wonder they cut off U.S. customers and lost Wells Fargo
Ayden Gutierrez
It's the latest episode. august 1st hardfork. china. jamie dimon. bcash. now this.
Asher Baker
We're not fucked. Tether collapsing would be a big, big deal, no doubt. It's obviously a fraud and people shouldn't use it or trade on Bitfinex.
But if it collapses overnight it wouldn't be the end of the world. Maybe take 25% off the market caps of the major coins. But we've all seen worse then that already.
Tyler Ross
I'll give 5 dollars for your bitcoin user
Cooper Turner
Worst case: every exchange using USDT gets raided by the US Treasury - they dont allow people to rip off the "brand" of the us dollar for long, ever.
Best case, US pressures singapore authorities to raid Bitfinex or order some kind of cutoff date when they have to stop using them, USDT fags panic buy to get any other cryptos at the best rate they can and moon everything before it crashes hard... then a slow recovery.
Jayden Collins
I think Bitfinex is based in Taiwan... theUS Treasury can't raid foreign countries, they would have to get the State Department to talk to Taiwans Ambassador etc. Taiwan itself pegged their currency to the US$ with frqctional reserve until 1978. Countries peg their currencies to the US$ all the time, and the pegs break alot too. This could definitely happen with Tethers, but Im not certain what the Taiwanese authorities would do in that case or if theyd even care
Isaiah Lewis
this already happened, dunno why the fuck people think there havent been unregulated market bubbles in history also spoiler only one thing happens
Evan Wilson
IT KEEPS GOING UP FOREVER AND CAUSES A COLLAPSE OF SOCIETY HYPERINFLATION AND A BREAKOUT OF WARS WORLDWIDE! WE'RE ALL GONNA BE RICH! LAMBOLAND SOON?
Benjamin Murphy
this bull run started when bitfinex was having bank problems. bfx price was always higher (almost 10% iirc) but the other exchanges followed it up.
this whole year could be one big bfx exit scam onto coinbase sucker bagholders
Joshua Scott
also bitflyer bagholders
Julian Nelson
lol and people are still trading with tether
Adam Cooper
It's based in hoing kong you clueless newb
Dylan Watson
Bitfinex is a crypto-currency exchange trading and currency-storage platform based out of Taiwan, owned and operated by iFinex Inc.[1][2] en.m.wikipedia.org/wiki/Bitfinex
Colton Morris
All this FUD comes from one account called bitfinexed. No one else is really reporting on it. They’ve been reporting about it for months. But only now are they really getting any traction. Are their allegations true? No one but bitfinex knows. Bitfinex did release a statement on twitter saying that they are fine and issuing a formal statement ‘soon’. So only time will tell
Gavin Williams
Doesn't matter. Mt gox release statements too calming down investors. The only exchange to trade USD to usdt is kraken.
Not to mention the delay in selling btc further compounding the drop plus fud plus news = death flags
Shit is about to go bananas
Michael Watson
The fuck is Mount gox. Mt suck my cox more like it.
