Similarities to MtGox

Tether is essentially only for money laundering,tax evasion, and bitcoin price pumping. It's going to get shut down imminently and the impending crash will be big. I'd recommend opening a short position on tether on Kraken to make some money off it if their exchange were even remotely usable.

it was estimated that tether collapse could affect like 1/5 of all volume or BTC volume only I am not sure

You can't move the bitcoin market with 700million idiot. It is nowhere near enough.

It was higher for the last 4 months and has only recently become the 'laggard' exchange

>marketcap meme
wash trading at 0% fee exchanges, which are tether-based

You realize theres only about 5million in buy orders on gdax keeping BTC From instantly dropping back down to 10k right? Probably not because you don't even understand marketcap LOL

bitinfocharts.com/bitcoin/address/3D2oetdNuZUqQHPJmcMDDHYoqkyNVsFk9r

The above is bitfinex's cold wallet. Over 40k BTC has already been withdrawn, but they printed MORE tether during that period, not less.

Marketcap is just the price that people are willing to buy multiplied by the number of outstanding coins. It doesn't actually reflect the amount of money in BTC, or any crypto.

Tethers affect volume, not marketcap. Every day, Tether has enormous volume, which is believed to be pushing the price of BTC upwards and goring into the sell order books on any exchange that accepts Tether.

How would a bitcoin crash effect alts?

As usual alts will be double fucked

yup, even BCH at this point hasnt proven it is resistant to BTC crash

likely only safe space is fiat

Thanks for explaining user
but still, why would tether and bitfinex do this so openly?, I'd imagine this shit would be more effective if it was done in a more shady way

Tether volume is consistently three quarters of a billion dollars, every day. It's the fourth highest, behind BTC, ETH, and BCC.

What volume does, what this fake liquidity really does, is wipe sell order books at zero cost, and generate demand on the buy order books, pushing the price through the roof.

ermmmmmm.... I just tried to sign up with Kraken so that I could short this shit. its not letting people get verified, so I cant trade ANYTHING... red fucking flag?

So hypothetical here: people stop trading USDT for USD on kracken. What happens? Well confusion first off as people try to figure out if tether is actually pegged to the dollar. If you can still get an actual dollar by redeeming them, everything is fine, and price stabilizes. If not, suddenly you face a crisis of how USD/BTC doesn't equal USDT/BTC any more, and either bitcoin plummets in USD value, or it shoots up in USDT value because the things are worthless.

I mean it will be a huge shock, certainly, but how bad is a matter of how much physical cash is willing to chase a plummeting BTC while tether shits the bed. The price could be relatively stable as everyone forces tether holders to eat their shit sandwich, or we could see MtGox style fuckery, which will probably recover faster because people would just LOVE to get in on crash of that level.

It isn't so open. Tether has been largely ignored up until the last few weeks when BTC prices really soared, and Tether issuance has gone over 7000% on the year.

Moreover, Tether used to be legitimate, up until it was recognized as a vehicle for solving Bitfinex's US banking problems. (No incoming US deposits? Tether's mystery banks just received 25 million from an undeclared source. No you can't see an audit.).

There's a willful ignorance part to Tether as well. Prices going into outer space, why would anyone complain? It's like the 2008 US housing market. People often believe what they want to believe.

Kraken has pretty high verification requirements. Takes several days, even weeks. Haven't heard anything about them actively refusing new accounts though.

Problem is actual fiat volume is much lower than tether inflated volume so even if all USDT bagholders eat shit as apparent liquidity dries up bitcoin price will go down.

can I short tether anywhere?
there's pretty much no downside since it can't go up, only problem would be the lend rate

Hey, get a load of this guy hhaha

Kraken is the only exchange where you can short it in USD

no it says
>Feature Disabled
>This feature is not currently available.
On reddit other people have been getting the same thing for a few days from what I can tell

>putting the cart before the horse
They will probably short futures as soon as they're listed and attempt to corner the market since so few BTC are traded or mined per day, even 5 traders with any amount of capital at all could crash BTC to $7k just by going short, and that in turn will cascade all the shady shit going on at exchanges into a mega-crash. Normies, Veeky Forums and plebbit have no fucking idea how easy it is to corner a market with futures and I guarantee wall st. is drooling over this easy money, as am I.
I have no fucking idea but anywhere between $2k and $8k sounds plausible. I don't know how bad tether will blow up, but futures alone could push down to 8k literally the day it opens. Veeky Forums also completely ignores that 5/10 people here think the (((banks))) are out to destroy crypto and futures is a super convenient way to do that. The other 5/10 think the banks want to subvert/control crypto, and crashing it with futures is a great way to do that too. In literally zero circumstances is there a reason for wall st. to push BTC up further and let some NEETs get rich off their dime when they can just short it first, liquidate all the NEETs and then pump it up for themselves.

Yeah, here's an explanation of the feedback loop that may be created in a downtrend. We caught a glimpse just two days ago. Tether isn't accustomed to the volatility (and why would it be? It's supposed to be pegged).

apolloslater.com/tether-collapse-scenario/

Is it not more likely that the flood of normalfags into coinbase is what's driving the price of bitcoin?

Wow this very interesting advice. It’s a short position with little downside since tether can’t be worth more than $1.

opening acounts != trading. I haven't seen any evidence of much new actual normie money is flowing into bitcoin and some good evidence that BTC pumps are tied to Tether air drops.

Crypto is about to become so big that this tether incident won't mean shit. You faggots need to get over these lame conspiracies

themerkle.com/paradise-papers-hint-at-underlying-connection-between-tether-and-bitfinex/

something fishy def going on

for some reason, people regard bitfinex as a leading exchange simply because the stats show them as having the most volume, when in reality it's more of a bucket shop where gambling addicts go to bet on the price of things that nobody is actually buying and selling there, just taking positions on. if you were an early adapter bringing in tons of coins to sell on bitfinex (for tether) you would force them to print a massive amount of them just so that when you start tanking the price the arbitrageurs will pick up the slack and buy with tetherbucks to sell on other exchanges, and they are no strangers to trading on their own exchange.

and then they'll go and say that it's backed by real deposits because you deposited "x worth of coins"
IT'S ALL FUCKING MADE UP AND THE POINTS DON'T MATTER

Incident? It's ongoing. And everything will be fine, unless the incoming money river slows or some heavyweights move for the exit. Then it's going to be a bloodbath.

Go back to sleep.

But volume in tether is there because it's convenient for a number of reasons. People deciding tether was worthless would mean they would start trading against some other safe haven, drawing volume there.

There's also nothing stopping anyone from doing wash sales to themselves with actual dollars since exchanges are so unregulated. Bitfinex would have to basically dump all their bitcoin with the intent of crashing the price, and everyone else is going to smell shit when they deposit that much bitcoin and then try to dump it for cash.

Truth be told, the whole pegging concept only works because people WANT it to work. Otherwise it's not much different from any other bank you give money to and trust that they're keeping score.

...

The problem with that scenario is no one can force tether to liquidate. Worst case, the say "we are no longer buying back tether." Price dumps. Tether turns around and buys the same tether they originally sold for a dollar back at 50 cents, or a penny.

Tether is just a massive USD shorting operation.

appreciated senpai

A key difference between this and mtgox is that gox was basically the only exchange at the time. Hacking gox was the same thing as hacking bitcoin.
Fundamentally, bitcoin has value because people want to buy it. If it weren't with tether it would be some other way. Maybe the exchanges that use tether will get fucked, but no more than any other alt that crashes in value.

Reddit please go.

Right, MtGox was hacked, and BTC bought at zero charge, sold at market. Just some similarities.

But, 700 million in fake liquidity is an enormous amount of money. Again, Tether's actual volume is fourth. Fourth! There's a whole lot of Tether flying around the exchanges, being used to buy crypto for zero cost and sell crypto for very real fiat. Even if Tether bumps the price up by just 1% a day, compounded daily sends the price soaring, exactly as it does today. And if they are successfully redeeming USD, that's a lot of money leaving behind the curtains.

It is no coincidence to me, that all the exchanges go offline during extreme volatility. Their accounts may be starting to look something like pic related.

>There's a whole lot of Tether flying around the exchanges, being used to buy crypto for zero cost and sell crypto for very real fiat.
No its not. Tether is purchased for a dollar and is spend for a dollars worth of crypto. Tether might be worthless, but that doesn't mean it's free money. It just means the bag holders will get fucked.

>Even if Tether bumps the price up by just 1% a day
Compared to what? You're assuming that the people issuing tether are the ones spending it, but that's not the case.

So get the fuck out of Poloniex/Bittrex? Those 2 alone own almost 500m Tether.

Anyone with experience can agree that the growth we have seen in Crypto has been very unnatural, and the crash is coming.

>My guess is that Kraken might collapse before anyone else, because Kraken is the only exchange to my knowledge that actually trades USDT for USD

Kraken has low exposure to Tether. Plus the fact that they peg it to the dollar means they can just let the value float down to fucking nothing.

>Tether is purchased for a dollar and is spend for a dollars worth of crypto. Tether might be worthless, but that doesn't mean it's free money.

That's exactly what it means. Tether is used to buy a dollar's worth of crypto but the Tether is created out of thin air. They claim each one is backed by a dollar but refuse to prove it. If you make a fake car wash token from material lying around and get your car washed, you got a free car wash. There was no actual money being exchanged, my man.