Bitcoin Forum

Im worried the situation with tether can bring down the cryptomarket to a great extend. Now i dont know the ins and outs, but i do read Bitfinex is printing Tether out of thin air and pumping the btc price with it. This is highly concerning to me.
I demand an explanation for these practices. This shouldnt even be possible in theory. What is this shit?!!!
Its a possibilty that every exchange that uses USD (with the t behind it lol) can go down and all of its funds with it.

In the "whitepaper" it is stated that there is no guarantee that selling 1 tether gives u back 1 usd. This is basicly stating: tether isnt backed by anything. Tether = the ether..... its allready in the name.

Yes I agree OP and I am hearing the same thing as you

Air goes in to USDT and real money comes out from pump-en-dump and anyway all the alt-coin
slot machines seem to work in sync and the major names all just about go up and down together.

Logic says to me that if South Korea regulations sent ETH - BTC down then Ripple should had gone
up but it went down with the rest of them

Good article

http://fortune.com/2017/12/05/bitcoin-btc-price-usd-tether-limited-bitfinex/  (http://fortune.com/2017/12/05/bitcoin-btc-price-usd-tether-limited-bitfinex/)

The exchanges, for their part, should offer better transparency. If Bitfinex isn’t acting out of self-interest, it is in the exchange’s best interest to explain its actions fully: why new USDT are being printed, what they’re backed up by, and the like. Vagueness raises justifiable suspicion, but only on the part of those who understand the market dynamics at play.

There is only one way to stop these potentially destructive conflicts of interest: proper government regulation.

Wow, this article is a must read for the whole Bitcoin community, the only problem is that it could easily spread panic is their suspicion is based :)

Not good. It's banal. Minted tether mostly probably goes to new coins.

Tether is the magic of bitcoin growth so the bubble burst

All the air in fact, just something is regulated, but something is not.

The difference with bitconnect is that here we have not much choice when we want to escape the dump

BitConnect for me was one thing but Tether is a real cancer.

Bitconnect was like a bad wig that slipped off, Tether is something more pervasive and difficult to excise. I feel the Tether problem will cost BTC dearly.

Tomorrow we'll know the outcome. American authorities are having a hearing on cryptocurrencies and the bitfinex case with Tether. If the authorities find any wrong doing in bitfinex pumping the price of bitcoin with Tether, bitcoin could drop significantly.

If you're worried about Tether, sell your Tether to buy some BTC and just leave the place for a few weeks. Seems like at this state, there is no real statement about tether solvability, so that means all we hear all around here can be considered as FUD.

Furthermore, a lot of you still hold USD, and you all know USD is backed only by air and no one cares, so why do you care so much about tether ? The only difference you have here is that tether isn't printed by a central bank.

Did anyone actually believe Tether was backed by dollars? On it's face it's a laughable idea and any diligence at all would reveal that they can not back all the coins produced. Only do business with legal companies. Unless you completely understand the code, don't mess with alts.
I would guess tether is done for. Even if they wanted to pay everyone back they could not do it since they owe dollars and all they have are greatly devalued coins.

Definitely good point.
What's also weird is the topic name:
- Bitconnect was a lending platform which now doesn't exist, while Bitconnect Coin still exists and trades;
- and Tether Limited is a company that claims that each of their USDT is backed by one dollar.
And Tether still works and works fine for entire cryto market.

When there weren't daily $100 million dollar Tether issuances happening, it was conceivable that they were fully backed. Now that nobody can actually redeem USDT and they keep injecting huge sums of money like this, it looks like the Willy Bot.

We don't know whether USDT is fully backed or not, but the possibility it was a fractional reserve was always there. Shady business practices and third party trust come with the territory with asset-backed "crypto" like this. Their biggest problem is that even if they have all the money in the bank, the CFTC is crawling up their ass! I can't imagine this game will last very long.

Still yet, USDT is trading at $0.995. It dropped below 95 cents earlier today, but people still have confidence. Crazy!

You might not know this but USDT called in the auditors to try to give themselves a clean image and then after paying
lots of money they sacked them  :o

I feel that now might be a good time to go short on Bitcoin and this might explain whats dropping the price.

IMO: nothing will happen with Tether tomorrow and nearest future, because this kind of news is a clear FUD and huge market manipulation.

Tether is bubble burst expected to happen now

Yes many say like that but they might soon hire another audit firm to have third party audit of their assets to make sure every tether is backed by real USD.

If they will get bust, it might not have big impact on market because they only have 2 billion marketcap.