WTF IS GOING ON?

>In January 2018 Tether announced that they no longer had a relationship with their auditor.

Wait what?
So they are selling tokens to people to 1 USD each with no oversight or regulation on a good faith?

What the fuck?
Anyone who is buying tether in a hope to cash out to USD is going to get plowed very soon
ho lee fuuk

I could have sold WoW gold for 1 USD claiming each one is backed by 1 USD somewhere else

This will end badly

you know this place is filled with normies when they can't tell the difference between supply and volume

Damn. Guys, the current crash is nothing compared to what's gonna happen in the next few days when the US govt fucks Tether in the ass.

Yes but for each token they must have 1 USD in cash
If the volume is 4 billion they should have 4 billion in cash
Outstanding token shares is 2~ billion so by their own "holdings" they should have 2 billion USD somewhere

I doubt they have 1/10 of that in reserve or even less.

Veeky Forums is retarded as usual

Whale manipulation.
They've been scalping people selling for a while.
So expect another pump later.

Tether represents almost all the liquidity and much of the """fiat""" that underpinned the collapsing crypto bubble.

>So they are selling tokens to people to 1 USD each with no oversight or regulation on a good faith?
Welcome to the crypto market, retard. There is literally nothing stopping Vitalik from takeng all you money and flying to Panama. There is nothing stopping exchanges from taking your shit.
There is nothing stopping the Pajeet scammers to empty your wallet with a javascript.
You put your fiat into literal monopoly money, that relies on good faith.

They won't even face a trial for any of this.
What part of UNREGULATED and DECENTRALIZED don't you understand, retard?

You're confusing turnover with marketcap. Tether only printed 2.25 billion (the left figure) out of thin air. That entire bundle is changing hands around 2x per day (right figure) as people rapidly cycle out.

>In December 2017 announced that they were suspending the ability to redeem tokens for fiat pending 'migration to a new platform'.

How much fiat is actually in the system?
Not USDT but actual fiat when people start trying to buy fiat for crypto this whole thing ends

I did not know it was this bad. I never looked into tether I assumed USDT was simple fiat circulating the exchanges

>I could have sold WoW gold for 1 USD claiming each one is backed by 1 USD somewhere else
Yes that's the Tether business model

You dont cash Tether into USD. You have to buy back into crypto using Tether then sell it at a usd-crypto exchange like Coinbase.

so when will tether "break"?
this weekend?
and what happens to the price of bitcoin in your estimation?

>squander some easy doe on an ostentatious display of wealth that loses 20% of its value once you buy it and a little more every day after that.
No, the people laughing are the ones who actually invested their profits in something smart.

I am a no coiner....
And people are buying it?
USDT is the most traded crypto by 4x over the past 24 hours
One exhchange alone has 850 million flowing from BTC to USDT

Are they just "printing" more tethers anytime someone exchanges BTC or any other coin into their system?
My limited reading tells me its about taxes but if all of tether is built on BS its going to end the entire market.

How does anyone cash out of digital into fiat anyway?

gib stock tips

is that obama?

now guess how wildly the market prices will be influenced once this asshole of a scam rips apart? forget about the 400 gorillion market cap most it isn't even in circulation and never will be

How much USD does coinbase have to cash people out?
I feel like a lot of people are going to be left hold some very worthless bags soon.

????
You seem to be confused, money used to buy into crypto doesnt enter some sort of crypto vault. Apart from the reserves held by fiat-crypto exchanges, when you buy in someone else sells out and walks away with the money. Market cap isnt "money in crypto," its a socially agreed upon value. We could all have a paradigm shift tomorrow and all decide its worthless - the money didnt vanish, its just in the pockets of sellers. Most things traded in markets, however tangible or intangible, work the same way unless they meet a basic need.

if i read this correctly, your fiat deposits on coinbase are safe no matter what:

support.gdax.com/customer/en/portal/articles/2689803-how-deposits-are-insured-on-gdax

fucking this

slightly off topic but does anyone else think bitcoin cash is about flip Cripple?

I thought about this as well
If only a very small portion of coins are actually active then that means the market cap is vastly overinflated. The people who got in at anything above even 2k is going to lose out massively as there is no fiat flowing in to cover the costs(loses)
What percent of BTC coins have not been touched since say 2015?
My guess is a very large amount
Every single alt coin thus far would be considered a ponzi scheme since there is no real value in any of it. The vaule is only worth what someone is willing to pay. If BTC or ETH is near worthless. They only coins you can actually buy or sell with fiat this means all other coins are going to be worth less as a percent.

Good luck to anyone still in

none, it's all digital pyramids all the way down

It could potentially return to the 2017 baseline of ~US$ 1000. It might even drop to 2014 levels.

I don't fucking know. Cash out to a good private bank like Notenstein or Pictet (no Americans please) and let them handle your portfolio.

They dont need as much as you think, coinbase trades on market value, if there was suddenly a huge market run to sell out the market value of BTC would plummet to next to nothing and Coinbase could also say at any time that they're not interested in buying your BTC anymore.

just hold and don't tell anyone ok, we're all in this together, when normies understand we're screwed

thanks medpac fren
will buy gold naow

That applies to any market

People cashing out.
Unlike last time we saw a spike on tether due to people tethering up to buy back in cheaper.
This is the big one boys, HOLD ON AHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH

It seems tether has an unlimited supply of tokens
So 4 billion in volume can be seen as 4 billion in supply(requests) in this context as they are required to have a USD to each USDT.\
How does coinbase have the USD to give to people who cash out? I assume they use new users USD who purchased BTC?
If no one is buying in how can anyone be selling to fiat?
Tether is very much a scam as they removed the ability to convert to fiat. Why would they do that is they have 1:1 USD ratio?

I have collected soooo many pink wojaks today. It is unreal.

>"Login failed. Tether is currently undergoing system maintenance. Please try again later."

>pic related: hodlers

The bulk of gold's value comes simply from everyone agreeing that its valuable thanks to being shiny.
The big difference is that people have consistently agreed for a long time.

t-thats just FUD right bro?
if not holy fuckshit panic in the disco

Not exactly as nearly all other markets produce something not consume something(its 4300 USD worth of power to mine 1 BTC atm)
The vale of a stock is based on the value/potential of the company
BTC is trying to be a new currency with nothing but rarity backing it. Problem is gold is rare too so is many things but the hype is what drove the price to the moon not its use.
Speculation is what has been driving this entire "market" but once the hype train ends the train flies off the tracks and it all crashes to near nothing.
If it ever reaches below the cost to mine then miners will stop mining and the transactions will stop.
This kills the BTC

The people with big holdings can get transactions done faster. All the biggest positions know each other, and have been playing the same game since the start. They allow occasional whales to 'cash out,' but it's for show.

Since they have so much of the supply, and the ledger is right there, people look at it, and see where the 'big' money's moving. That must be the place to keep your shit, dawg. Then, surprise, fuckers! Exchange exit scams.

25% value drop. One fattie gives his stash to another. 80% drop. The fattie that got the stash uses it to cash out all the poor people who have little more than cryptodust, but all added together like that, it amounts to quite a lot.

And even when they catch you, there are no laws or anything for this. The people who lost all their shit to Mark and his magic the gathering cards are given 400 dorrah per coin they can prove was lost, while Mark gets to keep all the leftover 'trash,' which presently amounts to billions of dollars in shitcoins, bitcoins, real estate, land, and god knows what else.

just saying thats what might happen one day

>How does coinbase have the USD to give to people who cash out?

They don't. They say they do, but like any other financial institution, they can't 'literally' bank all their customers. A run on any of the big exchanges will look identical to a real world bank run. That is to say, there's a whole lot of dudes, but fuck all money.

This shit is going to crash bellow hell if Tether decides to fuck us all

>And people are buying it?
Bitcoin is supported by nothing, no one knows who made it and no one is responsible for anything.
Tether is supposedly supported by USD, they have official offices, there are actual businesses behind it and it existed long enough to be trustworthy.
If you can't trust tether, you might as well stop using crypto at all, because that's one of the most trustworthy currencies.

>How does anyone cash out of digital into fiat anyway?
There are a few exchanges where you can cash out or you can order a credit card that supports crypto.

thought that may be why shitcoin dipped under 8200 but i guess that just normal now.
who gives tether all their money to buy anyway?
are the exchanges just taking IOUs from tether or do they get cash?
anyone know?

>nearly all other markets produce something
You're vastly understating how large of a market there is for things that are not or cannot be actually *used* in some way.
Also bitcoin is more about security than anything else.

Are yall seriously this dumb? Its people buying and selling = volume. Ive entered into and out of tether probably 3 times since the crash started, you sell when its high and starting to go down then buy back when its bottomed out. Easy gains. Lots of people are probably doing this right now hence the high volume

A run would crash the value of BTC and coinbase wouldnt buy it. BTC isnt a bank deposit.

>Here's your audit bro

>Not exactly as nearly all other markets produce something
The crypto market produces lambos by robbing normies.
Good enough for me.

Tether essentially IS an IOU. One they are not legally obligated to pay.

...

Because if a coin changes hands more than once in 24hrs it gets counted for each time it was exchanged

I’ll give you a very over simplified example:
Imagine a coin where there were only 100 coins total and they were all owned by one person.
They see them all to someone else for $1 each ($100 total)
Then 1 hour later that person sold them all to someone else (or back to the original owner) for $1 dollar each.
That would mean the volume would be $200 even though there’s only a total supply of 100 coins (at $1 each a market cap of $100)

Because of the rapid movements of all coins, people are going in and out of tether like crazy

Well, I'm glad that's sorted!

fair enough

faaaaaaark

The fraud will be exposed. Inexperienced people/scammers will throw tethers and bitcoins at shitcoin collectors, while all of cryptospace starts sweating profoundly. Possibly there will be heavy breathing.

One of the shitcoins will become 'the chosen one,' the escape route. It will quickly be discovered that the escape route won't let anyone escape fast enough to preserve any gains.

Repeat the 'searching for any semi-stable asset to preserve gains,' but add a couple percent to the intensity every time it repeats a wave. Less than 30 minutes after the first escape coin was found, tethers will be worthless, and bitcoin will have moon'd past at least Jupiter.

Then they remember that bitcoin is slow, unstable, and can only actually service a couple people every second. The richer you are, the more you can cash out, while trapping the other hodlers there. Seeing their bitcoin gains for the lie it always was, they insta-dump their bitcoins for any shitcoins the 8% controlling 91% of all bitcoins happen to have on hand. Bitcoin is so rock hard, steamy, fucking begging for release, and you can't take your eyes off this shit, nig.

It's literally fucking erotic to even think about, and you want it now now now, but no.

As you get ready to WITNESS, crypto instantly deflates. The ur ancient premine trash, Satoshi's coins...the whole foundation falls out from underneath, and Theymos is powerless to do shit about it. It is the worst feel he knows. He uses the stop codes. Don't fucking ask, but they are real. He uses them, but right as he's about to freeze the chain, he does a luke jr on the newest block. It reads 'fuck you, i got mine.'

And in the end, you'll be back to jerking off on webcam for steam games, while I sit in the jungle with my benzo monopoly.

ask them about the remaining 1999999999

>bitcoin is slow, unstable, and can only actually service a couple people every second
stopped reading there nice, try tho

>You dont cash Tether into USD
>first trade tether for BTC
>then Bitcoin to USD
Wait what. Then what is this piece of shit for?

Nobody is actually thinking of cashing tether out. The plan is wait for all this to chill out, buy BTC with USDT transfer to fiat exchange and cash out

>If the volume is 4 billion they should have 4 billion in cash
No they shouldn't brainlet

to pump the price, and to also make the owners filthy fiat rich

It's virus-free too, I'm convinced. Who else /allin/ usdt?

basically this , some people think it's as "valuable" as fiat so when shit hits the fan, instead of withdrawing to fiat they buy USDT and wait for the market to recover

Some cars increase in value though retard

For daytrading coins that don't have a USD pairing

I told you. I warned you, man.

I fucking told you about taking the center. You'd have been rich enough to buy your own country, but you didn't listen.

I can't believe none of you listened to my very real, very ardent advice before this place became a crypto tree house.

Pic related is literally me, on my way to intercept white doctor hitmen going for a gigantic delivery that actually doesn't exist. Just like your crypto wealth.

Now go back to /soc and produce some fucking trap feminine penis videos. There's actual good money in that market, you know, and you get bonus points for being submissive, wimpy, whiny, outright a faggot, and the mega bonus if you have all of them.

nice, just bought 100k.

just leave now