Bitcoin Forum

Bitfinex (tether) "lost" $850m

Tether lent (embezzled) almost a billion dollars to bail out bitfinex (tether)

Tether tells no one.

About half a year later, tether updates their TOS so that USDT is backed by "assets" The total "value" of the assets as measured in USD is supposed to be equal to the supply in USDT.

Tether is publicly called out by the NYAG for fraud and misuse of funds.

Tether admits that each USDT is only (at best) 74% backed.

We then discover that tether lends USDT and counts the loan as it's own backing. Tether refuses to ignore requests to verify holdings, only admitting they are insolvent when called out.

That's $2 fucking billion dollars in just 4 months. Just for the past 7days alone, they've printed $125,000,000. How is that possible? Just how?

Tether can print money with 0 oversight. So they do.

But their time will come, next court date with the NYAG is in 8 days.

They keep on doing nasty things because they are not regulated.

Now, if you were part of the powerful elite that controls the flow of money, would you remove the one single obstacle that currently caps bitcoin ecosystem's credibility? You wouldn't, right?

That's my suspicion for the moment – tether misbehavior serves elite's purposes.

Now the next question would be, what would happen after tether & bitfinex get shut down?

Would loss aversion drive insane new lows? or Would the market absorb the crash knowing that BTC is no longer capped?

Maybe is somewhere in between. I wonder who can really know that.

The simplest justification for this from them would be that more and more people are investong and holding usdt that is why the supply of usdt is on the rise and this statement could be true because many people do stay in usdt and wait for perfect opportunity to enter market.

We can make thousands of comments and criticisms about Tether. But it continues to take full advantage of being the first. Today, there are more than one stablecoin on each exchange. And almost all of them have Tether!

I believe many of the traders in centralised exchanges, they used to make final shot conversation to USDT and keep their funds safer in one level. So this USDT is one of the option for the traders to keep their funds in safest place.

Does any of you choose to believe that Tether's credibility will end some day?

Tether has as much backing as Venezuelan Peso

I do believe about that. The credibility of tether already ended when it was avoiding the audit from the reliable party.
It's not clear about where tether gets the money that makes the tether team able to print more and more money anytime. This just like a scammer that produce its own money.

Its called greed , nothing else. Tether runs by elite greedy people who like to make fool of public and newbies. They keep on minting new money out of thin air and saying that they don't want to do audit report by credible company . All their lies still does not let public abandoning them altogether. People will understand one day when tether will close when the regulated body will pounce on them . But again by then they might have minted and printed 10s of billions of dollars and  have it stashed in bitcoins and many other privacy tokens.

Tether people are the most cunning and smartest brain behind it. They will keep on printing those money until government do crackdown on them

Yup. And here's where all the problems with stable coins start. This is why all the hatred against stablecoins and so on.

There's an old saying about high prices, the approx translation would be "It's not the one asking (the high price) the stupid one, it's the one who's paying that." We keep blaming Tether/Bitfinex, but they actually play with everybody's greed. Interesting that nobody speaks up asking all exchanges ban Tether, for example...

it is partly because there is no law preventing them from printing any amount they like so they keep on doing it.
but there is also another reason that people overlook and that is "demand". if you look at the altcoin market, it has been growing and more and more people have been demanding fiat markets so that they could trade their shitcoins with something that has a stable value. but since altcoin exchanges want to escape regulations and don't want to add fiat they have been adding stable coins.
tether being the popular one, attracts people.

now considering the fact that when bitcoin falls, altcoins get dumped hard, they always want an stable coin to go to. and that increases the demand for tether and they have to print more of it to be able to answer to that demand.

Bitfnex needs USD for payments, but they cannot print USD. Printing a lot of USDT to buy BTC and liquidating them to USD help them do that. Only when they are investigated for deposit, will they sell the BTC for USD to prove it.
Usually anytime bfn is requested to prove usdt deposit that massive amount of BTC is sold.

Is there any decentralized crypto?

As far I know there is nothing exist like that.

But keep suing the decentralized crypto no matter of the value is stable or not for your benefits.

It is so unfortunate that bitfinex can be this as they keep creating more tether from no where and keep getting free funds and that has been the reason many has been worried over their token which might cause issue even the US is very much concern about it but I think soon there will be a solution in that regard.

Why wouldn't it keep growing? Tether can create as many USD as it wants, even in countries with fully controlled economies subject to certain rules for currency expansion. Is there an easier way to make money? Moreover, there is no paper and printing costs like USD.

I think creating more tethers good for cryptocurrencies.
They use it only for buying crypto, this increase price of last

There is and that called bitcoin, but the fun fact about crypto when the network that called blockchain becomes truly decentralized but at the same time crypto comes in the exchange site as a party that destroys the decentralized that already built by the blockchain to get its value.

have you checked the supply of Tether ever before? i don't think so. i suggest you take a look at it. then check out bitcoin price. if they were really buying bitcoin with USDT then selling it for USD then bitcoin price should have fallen to $100 and less due to the sheer amount of sell pressure :D

This is actually worrisome as I use tether for hedging on exchange during trading, I hope this does not mean that one day I may wake up to find out that 100usdt is not woth up to $50usd.

Does nobody know about DAI stablecoin?

Of course it does not sell off in 1 time. 10m usdt is printed to buy btc for 6k, then sell btc for 8k. After returning 10m usdt, the excessed amount of usd is the received interest.

Because people are cashing in their fiat into $$$ USDT, same to all other stablecoin

Its supply only become more and more when people start cashing out their Fiat and cash in to Tether
That's why Tether supply always go up unless people sells off to Fiat

Tether backed by Fiat, Went everytime fiat coming to them. They just can easily created the token by himself because its stable coin fiat, they must have a real backup before creating the token. Supply Tether = Supply Fiat USD.

Because they are dirty manipulators . For each stablecoin on the market, a company must keep a real dollar in their bank reserve, otherwise it’s just the numbers on the screen that mean nothing. Does anyone here believe that a tether has 4 billion dollars? I think not, so they can draw us any numbers, but in the end, everyone will know the truth.

that still doesn't make any difference. that would still mean dumping the bought amount back on the market and all this "fakeness" has to pop out somewhere. so either bitcoin price should have tanked in the past 7 years due to them (according to you) selling bitcoin they bought with tether or USDT price itself should have dumped as people who received those tokens dumped it for USD.
and neither of these things are happening. and remember Tether wasn't created yesterday!

I think "not regulated" is not correct, they are not doing business in USA as far as I know, they are using a bank in some Bahamian country and they are off limits to american government hence even if they are found guilty they could keep doing whatever they please because they are out of reach of american judge system. This is of course as far as I know, maybe they can still be found guilty and there must be some american citizen owner or employee they can charge with criminal activity.

Basically they are doing this because they can and there is nothing that can stop them and certainly people are still supporting them. Look at big exchanges where you can use usdc and gusd, people still prefer usdt over them and that seems to be the real issue here, if people start selling their tether and start using other things then they will have to listen to the public.

I do not know the tactics that tether is using that is really making them this string despite all the atrocities they are known with, yet people still prefer it to other reliable stablecoins, I have never been so much interested in tether from the onset, which is why I rather use USDC. The days of tether is really numbers and I cannot wait for the court to strike the case against them, if court does that, it will really create a massive dump in the price of tether and then build other stable coins, it will also make other coins like bitcoin increase in value.

So, I am also crossing my fingers to see the outcome of the court case too and I believe that it will not favors tether, so any one still holding that coins should better start looking at other stable coins or start converting their tokens to bitcoin.

Sounds like a illegal use of usdt in place,this is what happens when there is no regulations,usdt will be used by many unknown group of terrorists funding either criminal organizations or more than that