Is Tether a scam?

proof they burn it?

I said sell or burn because we know the value has to be maintained equally, even when undervalued, so they can do that through selling or burning.

I've been thinking about getting out of crypto because it seems close to popping. I thought about alternatives to hold since I don't want to send it all to my bank. USDT seems really fucking shady and big exchanges are using it.

You absolute brainlet.

I don't understand how they can just "print more", assuming they're honest and each tether is backed. With regards to todays 200 million fresh tether, where did that money suddenly come from? Who uses their fiat to buy USDT instead of coins that could potentially have a ROI greater than 0?

This at least makes sense.

Given the uncertainty of USDT, instead of "tethering up" during a storm, it seems it would be wiser to eat the withdraw fee go to an exchange you can swap for actual USD.

>I don't understand how they can just "print more"
They ask more from banks, that's why they get in trouble sometimes.
Lol, guys bitfinex is solely propping up btc by using tether, thus increase demand of tether, so they print more tether, to buy more btc, and then they dump btc to secure their tether funds, and then come out with a profit, and then have to print more tether to make sure they remain 1.

>assuming they're honest and each tether is backed

They probably don't have the money but nobody cares.

As long as people act like it has value they might it might as well have it. People are so desperate for a volatility hedge they are hoarding them right now to the degree that they are worth over a dollar, that is, people are paying a premium for security.

Its convenient right now for people to pretend like they are worth a dollar so everyone does. Never underestimate they power of shared mass conscious delusion.

So is the only way you can ultimately cash out with tether through bitcoin conversion to cash?

Wouldn't that make it a scam right there?

They have like a 96% chance of people cashing out, it's pretty high. You could say it's a well organized scam, but I don't think they would risk it since it hinders their future development to make even more money.

I don't even think banks have that high of a percentage. Maybe they are working with some shady banks, but that's not public knowledge user.

I guess really it could actually be a plus for crypto prices if tether is unmasked. Think about it. If you hold tether, you can either realize the loss, or try to buy some crypto with it in the hopes that someone else is naive enough.

Just follow @Bitfinexed

I know right? I'm just trying to be fair for the sake of argument.

Seems pretty obvious that if the reserves were there, they'd be boasting the positive results of their audits instead of keeping them.

>They ask more from banks, that's why they get in trouble sometimes.
Which again comes back to their business model. The banks aren't just going to hand out hundreds of millions to anyone (besides, they're hardly on good standing with the banks, see the court filings posted in that article). How does Tether LTC generate profit to justify this infusion of capital?

Is there a mechanism for generating revenue with tether aside from the exchange fees levied on USDT trade pairs that I'm missing?

Smooth sailing until the moment someone tests it, then all confidence is lost and this 1.6billion market cap coin goes to zilch? People should care if they're putting undue faith in it to shelter them through crashes.

If the only reason people "tether up" instead of going right to USD is that their preferred exchange doesnt offer USD trading (like binance), then the risk of major fuckery with tether really worth saving the $40 in withdraw/transfer fees to temporarily move to an exchange with actual USD trading pairs?

Cheers, will do.

>Is there a mechanism for generating revenue with tether aside from the exchange fees levied on USDT trade pairs that I'm missing?
Exchange fees are high. But, I'm unsure if they sell tether to other exchanges, but it makes sense. But since they control the circulating supply, they earn their money from simple supply and demand. It could be that they are also hedging bets on other coins to devalue to use in BTC, but I doubt they would take the risk of hedging their own tether. The shit has been 90+ cashout for years. I honestly think following tether demand is a good vehicle to see a market crash and they take advantage of that. When an influx happens, they borrow from banks and probably borrow deep. I haven't heard any news recently of them being kicked out, so they must have found a big bank that would take advantage of that by giving them huge loans w/ high interest for rushes like today. They could've given their money back in an hour.

TETHER IS A SCAM

ZCL IS A SCAM

THIS MARKET NEEDS A GOOD PURGE

GET OUT WHILE YOU CAN

Get out into Monero my friend, one of the only not shitcoins period

Agreed.

yes

Pop quiz:
If you could short USDT by putting up an equal amount of USD, what size position would you put on?
I'd mortgage my fucking cat to put that trade on.
Wouldn't you?

If they're directly selling USDT to exchanges at $1/tether, how can the afford the interest on the bank loans providing the reserve?

How do you analyze tether demand when the price remains fixed, just form the supply?
Genuinely curious about your method here.

sounds almost as risky as I’m going to mortgage my house buy a lambo and take out a few more loans and play on margin

what i don't get is that you can literally just have an exchange hold dollar bills for you. like why the fuck would you prefer keeping your money "safe" in tether instead of just moving ltc/btc/bcc/eth/ltc to GDAX and selling it for USD. then your money is sitting there safely in an FDIC insured bank account instead of panamanian funny money on the blockchain. if the answer is taxes you're supposed to pay tax on the USDT trade anyway.

Some guy in Turkey tried to actually cash out, since Bitcoin is banned there he tried to go out via Tether. Tether is giving out funds at such a low pace he went to another altcoin, but before that he was offered 30 cents on the dollar for them in Turkish fiat. That's the confidence the market has in them.

Literally all that has to happen is an audit. Think the US is going to sit by and let some chinks print billions of "usd backed" dollars? No fucking way. Look at the tether chart and see what happened the last time Tether was seriously questioned. It dipped to 90 cents with just that. Imagine if an audit is called for and people begin to widely think that their tether isn't backed by anything. It will be catastrophic.

This. All it takes is for the people to lose faith and UDST vanishes overnight.

I hope the reason is taxes and not "muh $8 binance withdraw + transaction fees"

And shills tell us to "fuck off with these threads".
Got a source on that Turkish dude? Wouldn't mind having something to reference later.

What do you think the overall affect on the crypto market would be? Even though BitConnect had twice the market cap of Tether, but it's hard to draw comparisons given these two shitcoins are thought of very differently, and it's hard to isolate the affect the BCC scam had on the overall crash/correction today.

$1.8b is not an insane amount of cash, it's not impossible that they do actually hold it. And their website says you can withdraw from an official tether.to wallet directly to a fiat bank account, is that not true?

>$1.8b is not an insane amount of cash, it's not impossible that they do actually hold it. And their website says you can withdraw from an official tether.to wallet directly to a fiat bank account, is that not true?

run on bank

>I don't understand how they can just "print more", assuming they're honest and each tether is backed. With regards to todays 200 million fresh tether, where did that money suddenly come from? Who uses their fiat to buy USDT instead of coins that could potentially have a ROI greater than 0?

>This at least makes sense.

>Given the uncertainty of USDT, instead of "tethering up" during a storm, it seems it would be wiser to eat the withdraw fee go to an exchange you can swap for actual USD.

Thats a taxable event

"Tethering" is a taxable event, just like any other trade you could make.

It has less market cap but the effect will be worse. Anyone with half a brain knew BCC was a ponzi. Tether on the other hand is actually traded at reputable exchanges. Financial contagion, look it up.

that's probably why they use a number of banks

In the US but possibly not in the EU from what I've read

>that's probably why they use a number of banks
they don't have the USD to back all the tethers. Last audit they had ~50m USD in cash. It's unclear how many people they can handle cashing out at once.

>There's this thing that's too good to be true
Gee. Do you suppose it's some kind of scam?

Isnt a BTC to USDT swap a taxable event in the US now too? I guess the IRS won't know if it happens on Binance, but GDAX will probably be reporting your info.

Their website also says this, in their terms of service in their legal section:
>Tether must and does at all times reserve the right to refuse to issue or redeem Tether Tokens
tether.to/legal/

Look up DAI and MakerDAO. A fully decentralized stable coin, held its value remarkably well during this crash

God you guys are fucking brainless retards. You really make me want to kill myself sometimes. It took me about 5 minutes to figure out why tether exists, where the money comes from, and why people would want to trade fiat for tethers.

The answer is simple. If you are an institutional investor and you want to send USD between exchanges, you cant quickly and effectivel move your fiat around for arbitrage opportunities. So they developed a standard that everyone uses. Institutional investors give fiat to tether. Tether prints millions of tether after receiving millions in fiat from institutions. Institutions move tether around from exchange to exchnage for arbitrage. Tether receives fees. Everyone wins. Its about liquidity of fiat. Brainless idiots like you cry scam!

Thanks for the (((explanation)))

or bitfinix created tether cuz they were shaddy af and no bank would do business with them so they needed a USD substitute.

>tether
>GDAX

You fucking idiot

Dude you are fucking retarded. The whole "bitfinnex connection" is so unbelievably retarded. Can you even comprehend how much fucking money bitfinex makes in fees? Why they would compromise their entire organization over chump change is fucking beyond me and everyone else capabale of logical thought.

Imagine a company that makes $1million a day creating an elaborate pyramid scheme to cover a $72 million loss.

Oh and by the way every major exchange and in the world is in on it.

I'm saying that while both are taxable events, BTC to USDT on a foreign exchange will probably be between you and the blockchain, whereas moving into a USD bunker on GDAX might incidentally get reported to the IRS.

Not to mention any bitcoin that bitfinnex has held since the hack in 2016 has gone fucking 20x in value LOL. So they made their losses up by holding.

If tether ever was a scam i guarantee you it was only temporary so they could return lost funds. By this point all tethers are almost definitely backed by real money.

gotcha, sorry

checked

because if BTC dies it will take the whole industry with it
thus putting bitfinex out of work or atleast taking a big chunk of their projected profits with it
Right now the only thing keeping BTC from falling into a deep abyss is USDT and they can just pull a whole bunch out their ass and keep the price of BTC up this way

Its bad and good at the same time

That's a plausible explanation, thanks. Why do you suppose they're so reticent about their audits though? The skeptics pose some pretty reasonable questions, it wouldn't take much to put the doubters to rest if it's all on the up and up.

but famalamandem
why would they refuse audits

How do you propose that this small amount of money is propping up a $500 billion dollar market cap industry?

Its $1billion in tether and we are talking about trading pairs with not just btc but at least 50 different currencies. It is NOT PROPPING BTC UP. God you people dont use your brains at all.

Price drops, tethers created.

You people assume: TETHER IS MAKING FAKE MONEY TO PROP MARKET UP.

Whats really happening: INSTITUTIONS TRADING IN FIAT FOR TETHER SO THEY CAN BUY LOW.

Yes, the printing of tethers is a bullish buy signal. Not because of some elaborate conspiracy, but because it means smart money is entering the market.

you're assuming that but it's not impossible that they do have the cash, is my point. Although granted I wouldn't buy any usdt until they release another audit.

that is a preamble to a clause, you are quoting out of context. they can only refuse on certain grounds. later on it says this:

"Absent a reasonable legal justification not to redeem Tether Tokens, and provided that you are a fully verified customer of Tether, your Tether Tokens are freely redeemable."

Also you guys dont consider but tether can make money just by making interest off holding your money. So thats how tether themselves can monetize easily

It just makes more money to monetize properly and not risk life in prison/murder

AML/KYC laws. Many don't want to get verified on USD exchanges.

People saying tether props the market up are worse than the people who say that

TA is magical voodoo.

Meanwhile Finance PHDs from Berkeley are making millions and laughing at you sad suckers.

If you think TA doesnt work go overlay that meme chart on top of bitcoin. YOU JUST DID TA

Assuming how big bitfinex is I think they actually have the USD.
My friend is owner of a brazilian exchange and dude the numbers are scary.

Assuming bitfinex is at least 100x bigger than my friends exchange, they got the digits man.

Basically read all my posts.

The tether scam fud is totally btfo by logic

You act like bitfinnex wasnt profitable when BTC was $1000. Why risk everything to prop it up? Its not going to drop to $1000

Ive been holding this coin for 7 months now and although its stable its the only coin that didn't moon like the rest of my portfolio

And who does the onus to prove there are no legal justifications for refusal fall on? At any rate, it's not fungible and they have legal grounds to at least delay you if not outright prevent you from cashing out (if they accused you of violating one of the grounds for refusal, they'd have to investigate to confirm or deny their suspicious right? How long could that drag on for?)

could be a scam, but I doubt it. I dont think a business like Bitfinex will risk their future profits and jailtime for their execs by engaging in fraud on this scale.

They are already profitable without Tether so I don't see why an american company would risk that, just for a bit more. People say its used to pump BTC but I dont beleive it. Its the chinks who are pumping cryptos, they have most of the trade volume and the premiums.

That being said, I'd stay away from tether simply because its on the BTC blockchain through the OMNI layer. I dont trust the BTC blockchain because those chink miners could execute a flippening if they really wanted..

Definitely a scam. jCash will replace this and save cryptocurrency in one swoop by bringing legitimate crypto-fiat for big investors

Tether looks at the USD/USDT market and sees that USDT is trading at $1.08 like yesterday. So they print $100M USDT and sell it into the market until the price decreases to $1.00. They then put the dollars in the bank and collect 2% on treasuries. Simple and profitable.

>you're assuming that but it's not impossible that they do have the cash, is my point. Although granted I wouldn't buy any usdt until they release another audit.

the null hypothesis is tether does NOT have the funds.

tether needs to prove they have the funds with an audit.

This. Every casino needs a dollar token to function.

Tether is taking advantage that everyone is using their token.

Bitfinex uses the printed USDT to acquire crypto through its own exchange. They make money because they are getting real coins with USDT that cost zero.

It would be catastrophic because tether is essentially lubricating the market.

Exchanges that deal in real USD have a ton of regulatory hurdles they have to jump through.

leverage

That article is outdated. Tether has already responded to similar claims. Check out this article:
cointelegraph.com/news/tether-really-isnt-a-scam-company-promises
Ignore the shitty title. They also have links to the audits Tether has shared.

It is spelled out clearly on the page you linked to the 6 conditions under which they can delay or refuse redemption

if any act, conduct, transaction, omission, or misrepresentation:
violates;
attempts or conspires to violate;
causes, aids, or abets the violation of;
involves a Prohibited Jurisdiction or Sanctioned Person under;
is suspected or believed to be blocked property, frozen assets, or economic resources, or the proceeds of any crime, terrorist financing, or corruption related to any Person or Government Official under; or,
exposes Tether and its Associates to sanctions, restrictions, or penalties pursuant to,
any applicable Laws, including but not limited to Applicable AML/CTF Laws, Applicable ABAC Laws, or Applicable Sanctions Laws.

>Ive been holding this coin for 7 months now and although its stable its the only coin that didn't moon like the rest of my portfolio

Is this guy serious?

>cointelegraph.com/news/tether-really-isnt-a-scam-company-promises

Cheers. lol that url though.

Anyone else feel weird actually discussing things on biz instead of just shitposting?