Tethers are backed by us dollars 1:1. Prove me wrong

Tethers are backed by us dollars 1:1. Prove me wrong.

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how about you prove me they are

protip: you can't

How about YOU prove me they aren't?


I have 50 Tethers. I wanted to withdraw them from bittrex so I can be paid $50 USD. On the withdrawal page it says its a 25 tether withdrawal fee though.

Lol 50 dollars fuck out of here

That’s the whole problem, no one has been able to definitively prove that USDT/Bitfinex doesn’t hold enough cash to back tether 1:1. No one has been able to prove it because they haven’t submitted to a transparent audit. That in itself is suspicious. So USDT may very well be legit, but since they haven’t proven it....

So basically Bitfinex is likely to be printing out tether which is then used to buy shitcoins, while Bitfinex itself uses the $ from redeemed tether to buy shitcoins as well, which means for each $ put into tether, $2 go into the market itself?

They are so confident they have the fiat to back it up they even refuse to do an actual audit.


Tether is back by nothing, just like dollar so yeh it same

the dollar is backed by the largest military might the world has ever known

Yeah yeah whateber


more like there is no dollars going into tether and they are printing money out of thin air which is then buying bitcoin (and other shitcoins)

>Hello yes? The greasy Ifiniex Italians?
>They're getting too curious
>Print some more
>Fake audit it
>Back it
>Dump it

>greatest military might
>lost against rice farmers with aks

Gets the noggin jogging

I think we should play along at this point.

When it was backed by gold it meant something. Military doesn't mean shit. The "value" of the US dollar changes every day and the military can't do shit about it. This is literally the dumbest thing I've ever read on biz. The dollar is spiraling out of control and no amount of guns can fix that you shit head. You think countries even wage war with armies these days??? You are naive.

>Iraq was about oil.
>NK is about nukes.
>Iran is about... uh... stuff

>hurr durr vietnam stronger than usa huehue

It doesn't really matter anyway.

Do people really think that every dollar or other currency in a bank account is backed by cash? Do people think that if everyone with an account went to withdraw all their funds at the same time, the banks could do that?

Banks only keep a fairly small capital reserve. They invest the rest. Banks would freeze withdrawals WELL before everyone had a chance to withdraw.

If anything, Tether is probably a lot healthier than most banks out there. They control the supply, and it's only $1.6b so far, which is the tiniest fraction of the crypto market.

The ONLY situation where more than half of tether holders want to cash out their Tether for USD is if the entire market crashes and there's no incentive for buying back into BTC, ETH or any of the others. By that point, the market would be fucked anyway, so that doomsday scenario would always come before tether implodes as well.

Few people are going into Tether with the idea of cashing out in Tether. It's just a safe haven to weather storms and then re-invest later. And as I said above, the only scenario where that changes is when the crypto bubble bursts anyway. But even then, the chances of EVERY tether holder trying to cash out in tether is slim. Some will re-invest. Possibly even most.

And that has shit to do with the price of the dollar? That is just a govt doing dumbshit stuff.

Fuck off you don't know shit. The military and military complex is propping it up. I don't know to what percentage but significant. How?


Yes it fucking does. You obviously don't know shit stop spreading mis-information.

5 to 10%

Wasn't the whole point of crypto anonymity and decentralization ?

>The Tether Chronicles
"These assets are created and destroyed on the fly. These are purely digital dollars. This is just representing dollars in our bank account," Collins explained.

Collins indicated that the number of Tether tokens in circulation will always equate to the dollars in its bank account, adding that there are no pegs or formulas that complicate the process for its partners.

"When you want to redeem them, we issue you cash," he said.

Decentralisation yeah, I don't know about anonymity though. Because it's on the block chain everything is essentially able to be looked up.

Collins went on to express his hope that
would become a foundational component of the bitcoin ecosystem, one that gains traction due to the stability of its tokens.

"It's simply a dollar that works on the blockchain, and works with all [our clients'] services," Collins continued. "Their services work with bitcoin and now they can work with Tether."

Eventually, Collins explained Tether will seek to make money by charging a small fee to issue tokens, but noted that it intends to maximize the volume of these assets to keep costs for clients low.

"If we're controlling billions of dollars in circulation, then we'll make a half a percent, we'll invest that money," he said.

For the long term, Collins suggested that Tether hopes to grow to form the backbone of government-backed cryptocurrencies, the blockchain-based alternatives to projects like Ecuador's planned digital dollar and the proposed E-Peso project in the Philippines.

Yeah that's fine, but theres no way to know if that's true objectively without an audit. Literally what we are relying on is "Just trust me man".

>Do people really think that every dollar or other currency in a bank account is backed by cash?
No, do you not know what a fractional reserve means?

Tether doesn’t claim to be a fractional reserve you tard

One of the biggest points was to escape the fractional reserve banking, so this is kind of ironic.

it doesn't matter... if you're from US you're not legally allowed to hold any tethers since they quietly updated their T&C

Look, the dollar is the bit of paper the rest of the world has to own in order to conduct international trading. The idea of the dollar value simply evaporating overnight is libertardian fantasy. It's never gonna happen.

Sad. Anarchocapitalism and we do the same dumb shit that fucked the system to begin with.

Do Audit
10 billion dollars from the tether bank were stolen by an audit company
Btc crash to 10$
I understand why they wouldnt do it

And the petrodollar is about to lose significance with petroCNY etc
Soon your shitcoin will be truly worthless

Audit firms just look at account balances and transaction records, they're not given the keys to the coffer and counting money by hand.


The proof is so obvious. Bitfinex are under pressure due to public concern. A simple audit of a balance sheet could resolve this issue within weeks. Instead, they hire a PR firm. What more proof do you need that it's all lies?

So they've been chucking 100 million USD into the crypto system every few hours for these past few days but the people who actually use USD for their day to day lives aren't allowed to redeem their tokens? And everyone is just fine blind trusting these guys?

bretty gud gig if you can get it, hay?

why would anybody use tether if this stipulation exists? am I taking crazy pills?

kek this shit is going to detonate the entire market when it lights off

god damn its going to happen all at once too, overnight

What's even better is Tether registration has been disabled for 2 months+ now

Who the fuck is buying Tether!

it doesn't. it was in their original TOS, but then people bitched so they changed it. now they're legally obliged to buy back tetehr for 1 usd, the only people still keeping the throwing the old TOS around without any source just poor fuckers who sold low and about to sepuku


The wording on one of the recent announcements always made me laugh

>dispose of Tethers

It's like they secretly acknowledge it's trash

people who registered earlier. mostly exchanges.

>No Class Proceedings
Is that even a legal demand

Getting into Teher at $1 will be the best decision you've ever made.

moon mission imminent

They mean that when tethers are sold for USD they're meant to leave circulation, though there's no evidence of this ever happening. Kraken just treats USDT as any other currency.

Barely anyone who holds tether is a "fully verified customer"

You can't get USD for tether. It's a scam

>the dollar is backed by
Stopped reading there. Learn what the word FIAT actually means, retard

When are they ever sold for USD? Is there even an exchange where you can do this?

>Barely anyone who holds tether is a "fully verified customer"

and barely anyone who holds tether redeems it through them
but whoever registers wants to, their verification process is a simple KYC with a bit of additional stuff like bank account

Apparently they store their cash in a Taiwanese bank, which has trouble wiring money out of Taiwan. When this pyramid starts collapsing and people begin cashing out, Team Tether will just tell you they can't do anything because western banks are not accepting transfers from their Taiwanese banks. In fact this has already happened and they filed a lawsuit against Wells Fargo where they explicitly state their refusal to accept Taiwanese wires is "severely crippling" their business. You faggots will have too options: fight your home country's bank or fight the bank in Taiwan, a literal non-country that is in a complete legal limbo when it comes to international trading and finance. Good luck.

Tether = Hotel California. You can cash in but not out.

Wasn't there also a huge amount of tether fears right around the China FUD? I am hoping this amounts to nothing just like it did back then. I definitely remember reading lots of fears about tether back then and no audit either

>Taiwanese bank

source? the leadership of bitfinex is around 50% dutch 50% chinese iirc

Kraken is the only one. Tether is one giant case of don't ask don't tell, but people will eventually start asking. Even the idea of hedging against devaluation through tether hinges on the flimsy assumption that someone somewhere will be able to cash out USD when things go bear shaped. Exchanges are keeping this shit afloat because they levered so much USDT debt hoping to avoid short term gain taxes associated with fiat, nobody can afford to let tether lose value. Tether is a huge systemic risk to the entire crypto market.

>The move comes after Bitfinex filed suit against Wells Fargo, accusing it of prohibiting four Taiwan-based banks – First Commercial Bank, Hwatai Commercial Bank, KGI Bank and Taishin International Bank – from completing outbound wire transfers on behalf of the exchange.


I'm sure lawsuits are public documents in the US so you can find them wherever they're stored (DoJ website?), can't be arsed to search for the actual documents but those two articles mention the Taiwanese banks.

Tether would have to be absolutely retarded to just let $1.6 billion sit in their bank account without using it to make money. Even using conventional methods that is $80-100 million a year they're leaving on the table. Given the return on crypto, they would be leaving much much more.

Given that tether is actually a pretty smart solution to the fiat liquidity problem faced by many exchanges, I think the people behind it are most likely not absolutely retarded, and therefore violate the necessary condition stated in the previous paragraph.

These two statements combined allow me to conclude that tether is most likely not backed by US dollars 1:1.

No they can't be redeemed because it's a scam, The tether coin turned the entire market into a ponzi scheme, and as soon as new no st slows to a trickle it's going to drop like a stone. Literally wouldn't be surprised to see bitcoin hit 1k again.

No new money, fucking shitty phone

Are you guys serious? This is worse than I thought.