Tether & bitfinex scam?

leo25

leo25

Well-Known Member
Silver Stacker
This doesn't look good. This is the kind of event that governments are waiting for in order to come in hard and shut it all down(exchanges). It would explain why bitfinex got so big so quick. Wish leverage trading never came to cryptos.

Start video at 10:10.
 
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You're a bit late to the party Leo :P

This was everywhere late last week (which is late now for the crypto world :P)

PS: I watch Carter's videos every day they are released - have learnt a lot and I like his outlook and way of going about things
 
what happened to the 30 million hacked tethers? are they now in circulation?
 
dozerz said:
what happened to the 30 million hacked tethers? are they now in circulation?
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"As Tether is the issuer of the USDT managed asset, we will not redeem any of the stolen tokens, and we are in the process of attempting token recovery to prevent them from entering the broader ecosystem.

The attacker is holding funds in the following address: 16tg2RJuEPtZooy18Wxn2me2RhUdC94N7r. If you receive any USDT tokens from the above address, or from any downstream address that receives these tokens, do not accept them, as they have been flagged and will not be redeemable by Tether for USD."
 
Soprano16 said:
You're a bit late to the party Leo :p

This was everywhere late last week (which is late now for the crypto world :p)

PS: I watch Carter's videos every day they are released - have learnt a lot and I like his outlook and way of going about things
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haha ok, i never heard anyone talk about this, i only heard people talk about the $30 million hack.

Man i wish i found about Carter earlier, i just came across his videos today! His videos are very good.
 
I never got the fascination with tether. If you want a crypto that is pegged to the USD, check out bitUSD on the bitshares platform. Your counterparty risk is not a company, but the entire bitshares blockchain. There is not much trade volume in it yet (chicken and egg problem), but I'm using it to take some profits, but stay in crypto to buy back if there is a correction.
 
tether was created to get around kyc laws along with aml and a way to get money on exhcanges that didnt do verification checks. its centralised and allowed users of it to buy btc with usd without being verified. the question is does bitfinex really still hold all usd that backs tether? probably in the cayman islands and therefore doesnt have to disclose.
 
I wrote a piece on safe haven cryptos a few months back :-

https://steemit.com/cryptocurrency/@buggedout/5-stable-cryptos-to-buy-when-the-market-turns

Tether was #1 because it has high liquidity, very narrow buy-sell spread and was also the most stable. Counter party risk is currently heightened, however.

bitUSD has potential but the liquidity is not there, the buy-sell spread is atrocious and there is a much higher risk of "black swan" event being triggered on the platform which will leave you holding a bunch of cheap BTS cryptos when the margin dries up in the event of a full blown crash. I have seen a couple of these black swan triggers on the bitshares platform and it's not pretty.
 
It very much looks like Tether does fractional reserve accounting. Which kind of makes Tether pointless and one massive Ponzi.
 
If you read the post it does say :-

It does have counter-party risk though, as the USD deposits are all held in the bank so it is somewhat centralised and if there is a bank issue they could just disappear overnight.
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The concept is solid and if it was done properly it would be no riskier than putting money into a bank account or buying shares in an ETF. The issue is in the way it is implemented and it is looking increasingly dodgy. It is one of the main reasons I am returning to hard fiat.

Tether should be a tool that enables transferal of fiat currency globally with the fast transaction times and low fees that cryptos should be utilised for.
 
Interesting bit about Wash Trading on Kraken between USDT and USD. Also the bit about new Tether injections correlating with Bitcoin pullbacks is fascinating.
 
Some fun facts taken from Tethers website :)

This from Tether's front page.
Every tether is always backed 1-to-1, by traditional currency held in our reserves. So 1 USD₮ is always equivalent to 1 USD.
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This from Tethers legal page.
Once you have Tethers, you can trade them, keep them, or use them to pay persons that will accept your Tethers. However, Tethers are not money and are not monetary instruments. They are also not stored value or currency.
There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers.
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How long will this clear as day scam last and how much has Tether and Bitfinex artificially pumped crypto's?
What would the true market value be atm without this manipulation? I think Bitcoin would be around the $1500 - $2000 USD range. Funny how that's about the price of Bitcoin Cash. ;)

 
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I draw some parallels to the alleged "Willy Bot" that pumped up the BTC price on Mt Gox before it all went pear shaped in 2014. It is possible that Tether is being used in a similar way to pump up the market artificially.

The whole BCH thing is unrelated though IMHO. If we get a black swan caused by a Tether default then I'd expect BCH to be a big casualty too.
 
BuggedOut said:
The whole BCH thing is unrelated though IMHO. If we get a black swan caused by a Tether default then I'd expect BCH to be a big casualty too.
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I don't think there is something behind it or that BCH will not go down if the market tanks. Just interesting that Bitcoin Cash is at a more true price point then Bitcoin.
So Bitcoin Cash is more closely aligned in function to the original Bitcoin and is reflecting a more true price point. Apart from that who knows whats really going on.
 
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dozerz said:
btw bch has nothing to do with bitcoin, just a way to attach itself to the bitcoin brand and try to steal some notoriety, beware. simply an altcoin created by ver and wu.
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So how does Bitcoin Diamond fit into this?
 
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