Bitcoin Forum

Hi everyone ,  u may know the news  but I'm sharing it again here

"On Apr. 25, the office of New York Attorney General Letitia James alleged iFinex, the company behind Bitfinex and Tether, of misusing $900 million of Tether’s cash reserves to hide an $850 million loss. Immediately thereafter, the bitcoin price plunged by seven percent against the U.S. dollar.

On Binance, the world’s largest cryptocurrency exchange, the bitcoin-to-tether (USDT) pair dropped from around $5,500 to $5,102 at the day’s lowest point, recording a 7.2 percent drop.

Bitcoin has since recovered to $5,233 and is en route to close the day with a 5 percent decline."

https://cryptoslate.com/tether-bombshell-leads-to-5-wipeout-of-bitcoin-can-the-market-recover/ (https://cryptoslate.com/tether-bombshell-leads-to-5-wipeout-of-bitcoin-can-the-market-recover/)

 most people see tether as a currency which is  backed by $ so when they change btc ( or any other crypto ) to tether they are pretty  sure whenever they want they  can get real dollars instead of tether in their bank account , now if amount of dollar is not same as the token amount so there is risk of not being able to change crypto to dollar is it the main reason that crypto value has decreased the market ?
Is this idea true? if no , please clarify me why btc price has decreased?

2) what do u think about future of tether ?
3) how much dependence on Tether will decrease?

I'm new to the crypto and this market  ,maybe my ideas are really simple or wrong , so i would be happy if u help  :-X :)
thanks in advance

First I just want to tell you that you could write a little more organized and clear. It's actually hard to read post.

But it's not entirely true.
"100% Backed
Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”). Every tether is also 1-to-1 pegged to the dollar, so 1 USD₮ is always valued by Tether at 1 USD."

I am wondering if this is possible. Tether company itself doesn't provide this possibility.  

I can't understand this from the economic perspective. But I believe it's mostly fear and confusion on market.

I think it's not bright. It's a bad system on top of a bad system (USD). And it's price will not/ should not go over 1$ so why would you risk it. But don't listen to a random guy on internet. :)

thanks for the info  ;) ;)

I think it was just the market's reaction to the fraud like news and since it was negative news crypto wise, a sell off is usually guaranteed by some panicky traders thats why there was a slight deep in price in most crypto assets.

But long term wise, you shouldn't be worried at all, Bitcoin has been at much worse prices than $5300.
As for tether, it's dominance had been reducing over a given period due to too much scandals. It's only a matter of time before it loses its top spot as the most dominant stablecoin.

Tether is a centralized stable coin and it was not fully audited and it always raises some trust issues.
This is not the first time Tether faces trust concerns. I prefer decentralized solutions for stable coins like DAI

This kind of problems can really affect bitcoin price and not only, and i think we should have somehow someone who check if really this stable coins have any real backup of real money, because if they not have this can be a big problem.

Through all the quoted text and phrase that you've just quoted, I think it is not necessary to say only a four comment about appreciation of this post, maybe you could try to share what is your stand about it, considering the topic as well, in order to make this community even informative further.

bitcoin has a 10 year history and if you check its charts you can see that this type of "rollercoaster" ride where price shoots up to the moon (a bubble) then drops down (the bubble burst) has been happening from the very first days when bitcoin was listed on the very first exchange platform.

so to answer your question, the reason is the same as when it decreased after reaching $0.1 and it is the same as when it decreased after reaching $1, ... after $2... after $10.... after $100, ... after $200... after $1200, after $20,000 and in the future the same reason why it is going to decrease after reaching $100,000, and so on.

Another tether fud. I really get sick of it. And bitfinex doing shady things as always.

There are now lots of other stable coins, just use it and let tether die slowly.

Teter is always involved in some gossip and scandal.  But this is normal, competitors do not allow to sleep well :)
If you fear for Tether, go to another stablecoin (good, there are a lot of them now).

I would also like to note the fact that since the fall of the cryptocurrency market in 2018, it was USDT that has helped many users of cryptocurrency to maintain their capital at a decent level.  Many sold cryptocurrency when prices fell and transferred their funds and funds to the USDT.  But nevertheless, Even despite the negative News, This project keeps afloat with dignity.

Well untill now bitfinex has rejected the claims and accusations against its exchange and the use of usdt funds i hope they will be able.to prove it as well so that crypto markets should continue its recovery because if proven guilty this can prove to be a set back for market as well.

This is probably the tenth scandal in my memory associated with Tether and never did anything happen to it. Let's see what Bitfinex will say.

I think that in this situation there is nothing surprising. Many people have been talking about this for a long time. The Birfinex and the Tether company are very suspicious and cannot be trusted.

yeah since the beginning there are so many problems about tether, everybody thinks it is a good cheating way to steal our money. we will see in the future if we are right or just the gossips of enemies. anyway you may use some other stable ones, for now.

Another FUD about Tether, someone wants to buy cheap crypto. There was plenty of bad news about USDT and it is still works and number one stable coin. Fortunately, for now, we have several stable coins if someone feared such FUD.

It's just FUD. More FUD means that the bull market might or have already entered.
Let's see what May 1 brings as there could be another pump like April 1 or not.  ;D

Well, since it's nothing but dollar in decentralized world, I think we don't really need because it will ruin cryptocurrency market just like the last FUD (the one you mentioned above). Govt will somewhat use tether to control people, and get their own advantages from making FUD or scandal about it. So, in the future, I hope that we don't use tether anymore to prevent this control.

This tether scandal is so alarming and something have to be done about it immediately to avoid our market crashing instead of us experiencing a bull run in price which we have all been expecting for a while now, I for once knew that tether has something shady going on with them but I really didn't care because they are a stable coin and I use it for purchase of goods and services instead of making use of fiat, but now things are being revealed.