The Tethers (USDT) Thread

white22

Sparrow
RE: The Tethers Thread

Bill Brasky said:
I'm watching everything with extreme care. I don't hold any hope that coinbase is going to reactivate my account any time soon so my only hope at the moment is to sell my BTC on localbitcoins.com for actual hard cash.

Have you looked into Gemini? They allow selling BTC for USD and transferring to US accounts.
 

white22

Sparrow
RE: The Tethers Thread

I have seen and follow bitfinexed on twitter. I have been trying to wrap my head around the entire tethers situation and decide if bitfinexed is a raging conspiracy theorist or Paul Revere, I just havn't had the time to dive into it. It all adds up (as many conspiracy theories do, minus important facts).

I'm glad to be out of Bitfinex with them closing to U.S customers. I was starting to get a little worried waiting until monday to withdraw my funds due to having open margin lending. Though if this whole thing blows up it could take down a lot more that Bitfinex. Might be looking at getting out of cryptos completely til the dust clears. Any one still on Bitfinex currently? U.S. citizen or not?

I find it extremely coincidental that Bitfinex and Tether are taking all this heat and magically there is a 30 million "hack".
 
RE: The Tethers Thread

white22 said:
I find it extremely coincidental that Bitfinex and Tether are taking all this heat and magically there is a 30 million "hack".

Right? But if it's not a real hack, how the hell does Bitfinex benefit from this? It doesn't take the heat off them, it makes it a billion times worse. The NYT wrote about this today. It's top story on slashdot.

So what's the move?
 

Bill Brasky

Kingfisher
Gold Member
RE: The Tethers Thread

Does anyone know if Bitstamp uses actual USD or does it use USDT? It never specifically states USDT only USD.

Is Bitstamp safe for selling Bitcoins in USD in case something were to happen with Tether?
 

Bill Brasky

Kingfisher
Gold Member
RE: The Tethers Thread

I've been keeping up with @Bitfinexed on twitter. He always seems to think a major shitshow is imminent but nothing ends up happening. I'm interested in what he has to say but I'm starting to think that he may not have all of the facts regarding the Tether situation.
 

Bill Brasky

Kingfisher
Gold Member
RE: The Tethers Thread

I'm surprised how dead this thread is given the gravity of problems that will come to pass in the entire cryptosphere if what is alleged about Tether is true.

The Bitfinexed twitter account seems to have done a lot of his homework. But like I mentioned, why hasn't anything happened yet?

I honestly have no idea what to think about it at the moment. The only people I have heard even mention anything about it has been Sam and the Bitfinexed guy and now Charlie Lee which does seem to give it some more credibility.

I'm sure that both Tether and Bitfinex saw Charlie's tweet. It would be stupid of them not to respond.
 
RE: The Tethers Thread

>The Bitfinexed twitter account seems to have done a lot of his homework. But like I mentioned, why hasn't anything happened yet?

Because the only thing that would matter is regulators taking action, and regulators move slowly, it would appear.
 
RE: The Tethers Thread

Shorting knowing an entity has an infinite capacity to spike the price is suicide. Go spend your money on prostitutes and cocaine, you'll at least have some fun before it all disappears.

Just treat it as an additional risk factor to be aware of, and keep an eye on it.
 

ms224

Woodpecker
RE: The Tethers Thread

SamuelBRoberts said:
Shorting knowing an entity has an infinite capacity to spike the price is suicide. Go spend your money on prostitutes and cocaine, you'll at least have some fun before it all disappears.

Just treat it as an additional risk factor to be aware of, and keep an eye on it.

Big thanks!

Unfortunately , my current holdings don't allow for too much in the coke and hookers department.
 

RichieP

Pelican
RE: The Tethers Thread

Very interesting. So, scenario analysis. If this Bitfinex'ed is right, what signals should we look out for?

How might we know when this is about to unravel (if he is in fact right)
 

ms224

Woodpecker
RE: The Tethers Thread

SamuelBRoberts said:
The only signal you'll find is the arrest of tether/Bitfinex execs and an exchange shutdown.
I do not expect there to be a lot of warning.

But how would this affect exchanges without tethers?

All out crash or ????

I think one thing missing from the crypto equation is not a comparison to usd but to third rate currencies in countries where holding usd isn't legal or easy. Even a major correction won't necessarily chang that
 

Bill Brasky

Kingfisher
Gold Member
RE: The Tethers Thread

I follow CrushCrypto on Twitter (you should too) and they somehow got their hands on the most recent Bitfinex shareholders' letter. It's unconfirmed that it's official but it's worth a read about what Bitfinex has to say about the recent Tether scandal.

I've cut and pasted the part about Tether but the entire document is worth a read.

https://pastebin.com/y6Mfp7FH

Negative Publicity & Tether
Bitfinex and Tether, a party related to Bitfinex, have been receiving negative press and social media commentary regarding an alleged lack of transparency and completed audits. This attack is persistent and coordinated, and is based on innuendo, lies, and misdirection. We are staying focused on our business, and getting the audits completed, but it is impossible to ignore the constant stream of defamatory and malicious claims. We are taking concrete steps to improve our communications, including more regularly sharing information and insights, but, for the time being, we want to offer our shareholders some comments that may be useful when encountering critics.

Specifically, much of the online discussion concerns the question “how can tether be created at night and on weekends? Tether has no banking — it must be fake!” While it is true that both Bitfinex and Tether have had banking issues in the last six months, we certainly have had access to banking, but for a limited audience. Since April, the vast majority of all Tether issuances have been occurring through Bitfinex.

Because Bitfinex and Tether have common principals and banking, there is no limit to the timing or amount of money that can flow between the two entities even if inbound and outbound customer wires are limited. Bitfinex holds the vast majority of its customer USD balances in the form of USD bank balances. Bitfinex typically only holds less than 20M Tethers for customer withdrawal. When that balance approaches zero, Bitfinex moves money (typically $20M) from the Bitfinex bank account to the Tether bank account at the same bank in order to purchase additional tether from Tether Limited. To be clear, when this happens, cash is credited (or removed) from Bitfinex’s balance sheet and debited (or added) to Tether’s. This can be done electronically, day or night, on weekends and on holidays.

The reason for the continuing creation of Tethers is simple: demand from verified Bitfinex customers. What are customers using it for? Tether recently added the following page to help answer that question. The principal use case for Tether is exchange arbitrage. Bitfinex simply acts as an aggregator of customer demands for bulk creation and acquisition of Tethers. Its balance sheet impact is completely neutral as to Bitfinex—as to Tether, every issuance of Tethers (a credit to its liabilities) is matched by a corresponding debit, or addition, to its assets, as described above—and has nothing to do with the USD lending market. Also, all of the Tether flows and balances are very transparent, which clearly corroborates the truth. Given Tether’s public and verifiable nature, fraud would be easy to detect if it were to occur.

I finally got my Coinbase/GDAX unlocked after nearly 3 months. I had to get an attorney involved but it was worth the cost to be able to trade in actual USD. I'm still not sure what I think about the Tether situation and whether or not it's safe to trade with it.

Something that I've noticed is that Tether is becoming more and more a base currency for the alt-coin market. With BTC skyrocketing, I have found it's a very bad idea to purchase alts with BTC as it will usually net you a negative return in Bitcoin but a positive return in USDT.

For now I'm out of all alts and only trading ETH, LTC, BTC which are available on GDAX. The only exception is Dash which from now on I will only trade with USDT.
 

RedPillUK

Pelican
I don't know, I'm glad people are suspicious but I'm still not sure. I have some questions.

Can that 750m USDT really come out of Bitfinex's cash reserve as they say or are they really printing money?

Didn't Roosh point out that Bitfinexed was some bitter no coiner?

Firstly, how many people are trading Tether for US dollars? If it's only a small amount of people, can tether/bitfinex cover it?

Is this the only problem or is paying customers back their bitcoin also problem? I was under the impression that most tether is traded for other cryptos.

How much money does a bank keep in reserve to pay out it's customers? 10%?

So how much money does Tether/Bitfinex have to pay out it's customers? 10%?

Isn't that a problem with all exchanges converting USD to cryptocurrencies? They might not have enough money to pay out cash if everybody tried to withdraw at the same time? They probably don't, but neither would any bank if everyone tried to withdraw cash from them at the same time.

Are people just asking questions or have there been a large amount of people having problems withdrawing cash with Bitfinex and Tether?
 

dasher

Woodpecker
RedPillUK said:

Addressing your core questions:

The argument is that the are printing money - that they don't have nearly as much USD as there is Tether.

Whether he's a bitter nocoiner or not is irrelevant.

If your Tether isn't actually backed by a USD then you might as well be trading for a Deez Nut.

If there's a run on Banks, they'll probably run out of money, sure. That doesn't change the fact that Tether claims to have an actual USD for every issued Tether.
 

RedPillUK

Pelican
Actually whether he's a bitter nocoiner is relevant, because if he is that means that he wants cryptocurrencies to fail, so of course he would be spreading this.

I understand that is the argument, and I was asking whether there was any proof Tether don't have this money. They're recieving BTC or dollars for their Tether, so they should have at least 10% of the money they say they do, especially if they're cashing out that BTC they recieved a long time ago that will be more valuable now.

I'm just comparing the two, if theres a run on banks they'll probably run out of money, if there's a run on tether, they will also probably run out of money. Does the bank actually have all the money it says? If you compare the two and come to the conclusion that both have basically the same drawbacks, what difference does it make? You're fucked either way if something bad happens.
 
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