Bitcoin Forum

For the full news coverage check out my YouTube Video:  Breaking News: Tether , a problem or just FUD...
(https://www.youtube.com/watch?v=OrqArez-KHc)



Do you guys think this is real? Or do you think that it is just a coincidence that Tether isn't getting an audit.

This is a big problem, I do not like the way the market is. What are your thoughts?

Tether's reason for avoiding an audit from Friedman LLP was that it was supposedly taking too long.  By their logic, if something isn't taking a long time, that means that they should stop it from happening altogether.

An audit is obviously going to take a long time for a first-time client who runs a financial service and has never had an audit at all.  If Tether want some people to just check some balance sheets, they can bring in whatever thugs they like.

If Tether were legitimate, they wouldn't be doing so many blatantly shady things.

 Not to make fun of you, but if you want to look professional in future videos you might consider closing your bathroom door or changing the angle of your camera ;)

People were being suspicious of tether for some time, but let's say tether is legit and they have all the reserve they're saying we can still see a huge "bank run" that could crash its price simply because of those suspicions spreading. Maybe those who are spreading the news are hoping for a crash to buy more? Not very probable, but we can't dismiss any possibilities. The options that I see are:
1. They will get a decent audit done and deal with it the right way.
2. They will have to deal with the bank run and a possible crash despite the rumors being true or not.

it's a shame that there is so much problem with the tether, because it is very useful, but personally I have no confidence

Well, this is the problem with using centralized coins, you need to trust they are doing what they say they are doing and every time we have done that things have turned out wrong not only for a few people but sometimes for entire countries, this is why I find something like tether to be odd to say the least, we have decentralized coins and yet people prefer to store their money in tether.

Why do you need an audit?
People are already pouring money on them!

It is very sketchy



No what...?



I did that on purpose to make conversation.

I agree, however I dont think they will get the audit done. The more I think about it, I dont think it will be a huge crash that a lot of people think. I dont think it will be a huge 50% drop in bitcoin, but it does look bad for it.



I certainly dont have any, and I am pretty sure they have printed more tokens since the creation of this thread. ( I think )



They need an audit so investors can put a little more trust in them.

Surprisingly no. The last printing of USDT in the Omni network riding on top of Bitcoin was on the 23rd:

http://omnichest.info/lookupadd.aspx?address=3MbYQMMmSkC3AgWkj9FMo5LsPTW1zBTwXL&page=1 (http://omnichest.info/lookupadd.aspx?address=3MbYQMMmSkC3AgWkj9FMo5LsPTW1zBTwXL&page=1)

The U.S. Commodity Futures Trading Commission has now requested a subpoena according to Coindesk!


Do you guys think this will end well?

Most importantly how is it going to affect Bitcoin. Is it going to pull down BTC and then whole crypto currency market?
How would ETH fare in this situation?  I am wondering how can Tether with such a tiny market cap of about 2 billion dollars affect Bitcoin who market cap is 175 billion.
What do you guys/gals think?

It certainly isnt good publicly as well though, when people see $2B evaporate they wont want to enter the space. If everyone starts selling tether, others that are not aware or dont evaluate news are going to go " shit bitcoin is selling, we need to sell" and then hell breaks lose.


Although I dont think it is the end of the world, it certainly wont be good.

Tether was super handy, and made it easy to play around on exchanges. Why cant people just do what they say they are going to do? Maybe the news wouldnt have had such a big impact if it turned out tether was bollocks without the pre-news. Im sure anyone that does technical analysis on bitcoin is getting pissed off by the constant stream of bad news that reverses any bullish trend with a bear one only for it to turn around again a week later when it turns out the news was wrong or overblown.

I doubt that Tether is legit.  There are too many red flags.  That said, remember that it only has a 2 billion market cap, compared to the entire 520 billion value of crypto.  If and when Tether collapses, it may have a short-term impact on the market, but things will recover.  No worries.

I agree, I hope we can just get passed it and move on quickly.

I call it FUD, and am surprised at the negative sentiment I keep seeing expressed. Everyone seems to assume that the problem with getting an audit done automatically means there's a shortfall in dollars backing it, when that is the less likely explanation given what we already know of their banking troubles. What is far more likely is that the irregular and problematic banking channels they are working with, and that keep shifting on them, is what is making it virtually impossible to get an audit done to the satisfaction of the auditor. It's no secret they are struggling to establish a robust and reliable set of banking partners for transfers, but that's not the same as saying the dollars don't exist.

Worst case I expect them to get in trouble over the use of shell accounts and companies in moving money around. But if authorities keep in mind that they are trying to protect people, not create a crisis that harms them, they'll manage any punitive actions in a way that does not steal funds from tether holders.

You can see that the FUD has barely registered with the price of tether on coinmarketcap. Bitfinex is still letting people wire out $ on a 1:1 basis with tether on their account last I checked yesterday. So people in the know are maintaining the price and taking advantage of the FUD to profit off even slight dips with arbitrage, I believe.

It will be a big problem and people will be pretty pissed if they cannot withdraw. It will also have an impact on other exchanges and nobody even knows if they hold the money in reserves to pay out, They have something like 1.3 billion dollars of oustanding tokens They dont help themsleves by being pretty shady when they get asked question by the media.

They have also been fined in the past

"In June 2016 the CFTC fined Bitfinex $75,000 for offering “illegal” cryptocurrency transactions and failing to register as a futures commission merchant."

This is certainly not good news, but a lot of people have known about this for awhile. I have been sketchy of tether for a long long time, since it acts as another token and doesnt actually have USD backing.

Even if tether does go up in a ball of flame, exchanges will quickly suss something out in order to maintain their business. If they do not already have pairings for actual dollars they could create their own version of USDT. It is in their interest to have a way of getting into crypto and if they do not quickly adapt that will see other exchanges taking up their market share. I wouldnt be surprised if exchanges that do not offer USD/EUR pairings are working in the background on something that will replace USDT so that they can immediately implement it if tether is confirmed as bust.

Not so sure this will be the case, but anything is possible in the world of crypto.

It could potentially be a slight problem, but this feels like just another excuse for FUD. Why does everyone only suddenly care about this now. No one cared about Tether when btc was hitting all time highs

Maybe because people were unaware of the printed tether, or that tether wasnt printed yet. The problem is that the fiat backing might not be in the reserves, and the fact no one wants to audit them is suspicious.

I don't really see it as a big problem, its just FUD, based on research and analysis, it has always been difficult for bitcoin to survive first quarter of the year, but this year seem worse, the major countries are polling out and bitcoin is going deep, but it will certainly rise back, is just mater of time

Some thoughts for those who are able to count 1 + 1 + 1 + 1:
1) problem with Tether, which huge CAP was obvious for previous months;
2) Facebook blocks ads related to crypto;
3) India bans smth in crypto, just hard to imagine what India can ban in crypto...
4) all this happened in the last few days, when crypto market is seriously down.

People throw around FUD like candy in cryptocurrency. I have a hard time thinking people actually know what it means.

What's worse that people spread FUD news extremely fast, generating negative waves in crypto community.
But it's in our hands to resist and reveal such FUDs and rumors.

It's pretty clear that there has been an organized or semi-organized effort to push tether-FUD to drive the market down. Expect it relent to a large degree as it becomes clear a market bottom has been reached and people are buying back in.

Meanwhile, tether has stayed very close to $1 despite market volatility that has often pushed it much further off in the past. That's a sign that whales and others in the know are not troubled by the FUD and in fact are taking advantage of arbitrage opportunities whenever the price drifts far enough off $1 to be worth the time and bother.

I think there is a real problem with the tether however the timing is certainly a little manipulate

IF the FUD on tehter WAS STARTED BY TETHER to knock the price of BTC down....so they could buy tether/usd and fill their coffers...from the previous pump in price that tether pushed some itself.....in that they had NOT kept up with 1 tether to 1 usd before ..but after the fact fix that problem with high priced BTC paying for USD to Tether....my questions are:

1) is it illegal? I mean .if the regulators find out it is even/steven after the fact....is that illegal...ie.....hedging on BTC going up on your pumping and then cashing out and covering your

bet buy then getting tether for your 1 to 1 ratio? It is not like crypto has stock market rules on risk/reward games like banks (who played this game before the great recession and likely stil

do)

2) what is to tether from doing this again? How would you tell? Only after the fact with failure would it be obvious

3) I mean if your $$$ to tether games allow for the price to pump by inflating price/volume..why not use it like a water pump and go back to the well again and  again?

no FUD has ever been a complete lie. that is how the FUD becomes effective! if you just make shit up it won't be effective.

in case of Tether, things are the same. it has always been known that USDT is a messed up altcoin and a lot of people never trusted it at all and most of them only used it for a tiny amount of time just because of its convenience. we all know that the price ($1) is not even guaranteed!

so when you want to spread FUD you choose something that is already messed up. Tether, China, Russia, .... all the FUD sources have always had some problem to begin with.

another bad news that will make people become panic and they do a good job to start makes a chaos in the market. personally, I don't think too much about the bad news like that and I only act what I need to do and I believe that every bad news will not stay for a long time and I am sure that everything will be fine again. we need to know their reason to release that news and we need to search on another site so we know what we should do to prevent if the bad things happen.

Read this: https://medium.com/@bitfinexed/the-mystery-of-the-bitfinex-tether-bank-and-why-this-is-suspicious-a8a6407a1241

Then this: https://futureblock.io/2017/11/23/paradise-papers-reveal-bitfinexs-giancarlo-devasini-and-philip-potter-established-tether-in-2014/

Then this: https://pastebin.com/kZMM5Hk5

Pretty interesting stuff. I wonder how this all will unravel.

your 'pretty interesting stuff' = 4k BTC coin soon, IMHO. FML. :(

I remember 5-6 years ago everyone on this forum talked about the fiat fractional reserve banking system as if it was the devil himself. Bitfinex has figured out how to turn bitcoin into a fractional reserve system and everyone fell for it. LOL

https://3.bp.blogspot.com/-SgtKivQO2m0/Vw9tiH0tn9I/AAAAAAAADtg/x7HcZJUqjFkTRpiF6-AwNeSDYabrI9L1QCK4B/s1600/what-goes-around-comes-around-1440x564_c.jpg

I resemble that remark...likely if they in hindsight have covered their Tether to USD link..it is likely NOW after the fact ...NOT even illegal.....

also, remember bitmain and BCH games etc made 2.3 billion dollars last year it was announced...a ASIC monopoly is a nice thing to have also....

evil pays it seems (tm bitmain)

Yep, you’re right, it does pay. Bitcoin is one of the greatest creations of our time. Blockchain technology will reshape the very core of commerce across the globe.

Unfortunately, bitcoin is also the best lubricant for criminal behavior since the invention of the post office.

During my trading days I have never delved in trading to Tether even when the strategy looks pretty solid. But after reading what Tether's about before, I knew something seems fishy. They cannot keep their 1:1 ratio with dollar. That marketcap against the whole crypto cap. Hope anyone don't lose money over this. Tether should make a solid announcement.

People have been warned about Tether, so if they lose it's on them. It's hard to say with certainty it is a scam but the warnings are loud and clear. That said, if Tether evaporates, it will have a short-term market impact. In the long run, cryptocurrencies don't need Tether. In fact, a replacement with regular audits may emerge.

When it comes to the argument whether in support of Tether or against it, its fairly straight forward and even an objective discussion. Its simple let bitfinex or anybody backing Tether with the claim that every Tether is worth 1 dollar and the total amount of Tether in circulation, is back by equivalent dollars either in vaults, deposits, transfers, credits etc and all of this goes away without thinking twice or else it will be more than FUD its going to be an outright scam that won't augur well for the entire crypto market.

Not only that, the authority will see this as an avenue to push forward their agenda of labelling crypto scam or a ponzi. This they are good at doing.

Have a lot of bad news and the bitcoin price is going down!
Hope that everything is OK!

But who in his right mind will use something like tether created by another exchange if tether is in fat confirmed as a bust? At that point most people will want nothing like tether ever again and will ask for pairs directly with the US dollar, in my opinion this is a way to make exchanges accept even more stringent KYC policies against their users.

Really hard to pinpoint exactly what is going on. I think it is just mostly panic sellers who got into the market late. No one that bought in early is going to be scared of china bans etc

Well better, that we are at 9k and the shoe drops, vs 4k and the shoe drops...I'd rather dump from 9k to 4k than 4k to 1k if it is bad bad bad news....

The circumstances are really shady ,started out with just $25 million and now they have $2.2 billion worth of Tether and they are generating it like crazy in the past few months,the audit report looked shady as well as they are not revealing the banks they have invested this much amount of money,there is zero transparency and yet the team behind tether is telling that they are doing the best they can do to be transparent,looks like they do not understand the meaning of transparency.The doubts are real and you only know the reality with time.

Funny that this is only an issue because most of the people think, that USDT = USD  :D

Tether indeed is a problem, and the problem is it's own existence and reason of.

Tether, a token that is artificiality pegged to he value of a fiat currency , that can be produced in whatever numbers , that can be manipulated and at the same time lose it's value to zero once bitfinex pulls a gox....a thing like this is an insult bigger than ripple.

Another problem is that even if tether fails and I hope it will, we are going to have a lot of those in the future.
And with that, welcome to the era of the fiat shitcoins!!!

A recent news on Tether is, investors were buying crypto currencies with Tether instead of US dollars and this is one the reason for the dip in value of last Tuesday (yesterday). Tether has manipulated much on crypto currencies values where only Tether value was in two digit percentage green and other altcoins were completed in red in terms of their growth values. Bit partiality.

Every investor who been invested in crypto dont like this way of the market but its the market, the market is never wrong then we just need to follow it.
The only people who are happy with this situation is people who waiting to buy back at lowest price so they can make huge profit in the future.

Most coins are bad projects though, so what would be more important is educating yourself during this time. Evaluate the coins you have, and make better investment decisions.

I don't trust Tether - I think it could all unravel soon.

I guess Tether can be a big problem. If I am right, an audit to check it it was really backed by dollars has not been allowed. It stinks, and it stinks badly. It can create a major collapse of cryptoccurrencies if the problem is for real.

Its confusing me too why people still trust into centralized coin like tether and store their capital into tether.
There are so many other good coinout there and why tether?
In another case, people always said that they join here because they want decentralized for new currency system but its just writing sentence.

There is something worse. Even though the evaporation of 2B$ is quite irrelevant in the whole, people would start to rightfully claim that the rise of Bitcoin to ATH had been fueled by non-existent money, and THIS would crash BTC price.

This also brings up another good point. The money is not "non existent" though because it is at the expense of others.

The real problem of this world it that the money is to some extent "non existent" everywhere, the only existing thing is the faith in the value of a currency, take away the faith and you have no currency left. I know what I am talking about. I am Jesus Cryptos.

I didn't realize your name was Jesus Cryptos , now I see the light!

What tether is up to is:

This asshole
https://news.bitcoin.com/wp-content/uploads/2016/10/AAEAAQAAAAAAAANMAAAAJGI5MTNhODEzLTExZDctNDA5OS1iMzYzLTRlOTI2OTZiMzdkZg.jpg

And this asshole
https://s.hdnux.com/photos/61/26/03/12935415/3/920x920.jpg

Are stealing everyone’s money just like this asshole did:

https://www.crypto-news.net/wp-content/uploads/2017/07/DETERqdUIAAlgFE.jpg

They were asked to present an audit a long time ago and thought "instead, what if we just print tether to hide the situation" instead of just getting the audit done. Just stupid.

Who else has an opinion on this subject?

I'm not responsible for the light - that's my dad's business ;) BTW remember the old trick of the multiplication of the bread and the fish? My guess is that Tether is the consequence of a trick of this sort.

the truth is that there has been a problem since it left no one who controls that but who has been linked to the fall of bitcoin and bitfinex must be aware when they enter a market to get out we have to devise a way to get them out of the cryptocurrencies of so that they do not affect us because there are ill-intentioned people to manipulate the market at will

Hopefully the truth will come out, whatever it is.

Tether is difenetly a big problem for Bitcoin growth and lot of Fud created for new investors market may move up and down create voality

as soon as you receive the first profit, you will always learn more and in the end you will get a lot of experience

I am not sure what you are trying to say here in relation to my thread.