Bitcoin Forum

I have a great idea for a business. I'll invite people to send me money. For every dollar they send me, I'll send them a receipt saying "Thanks for sending me your dollar. You can have your dollar back whenever you like subject to the following condition: you don't really have any right to have it back. And I promise I'll put it in my bank account and keep it there until I decide not to anymore." And people could use my thank-you notes as money!

Would this be a scam? No it wouldn't. A scam is, by definition, a deception; a scheme based on dishonesty and fraud, and I'm being completely candid about my intentions.

From the Tether FAQ:


And here are the terms of service as they relate to the redeemability of Tethers:


So Tethers are redeemable subject to the condition that they're not. No deception here. There is a fully transparent company for you.

Also from the terms of service:


This is obviously very well thought out! According to #4, if you "perceive" that Tethers are worth something, and they aren't, you have no recourse.  Under #5, whatever it is that Tether does, if they suddenly stop doing it, you have no recourse. And under #7, if someone from Tether told you that Tethers are worth something, and they aren't -- no recourse. Unjust enrichment? No recourse!

If Tether management decides to close up shop tomorrow and leave with the all the money, it wouldn't violate the terms of service. It's all there in black and white - no deception there!

Could the fact that Tethers are trading somewhere close to par have anything to do with the fact that some people "perceive" (see 11.4 above) that Tethers have an intrinsic value or are redeemable? Could it have anything to do with the possibility that some people "perceive" that Tether's reserves are committed to redeeming Tethers or supporting the value of Tethers? If anyone "perceives" that, it's their own fault, not Tether's!

Here's my idea again. I'll invite people to send me money. For every dollar they send me, I'll send them a receipt saying "Thanks for sending me your dollar. You can have your dollar back whenever you like subject to the following condition: you don't really have any right to have it back. And I promise I'll put it in my bank account and keep it there until I decide not to anymore." And people could use my thank-you notes as money!

Maybe not. Nobody would do that. It would be stupid.

Tether was fine until some exchanges like Kraken hate it. Tether to the moon! I expect a Tether pump soon.

What do you mean by Tether pump ? Doesnt the price stays the same ?

If tether pumps then it is a failed coin.

The whole idea is for it to have parity with USD. And divergence from that and it is not serving its purpose.

You can't really expect them to offer all sorts of guarantees

if they take a large amount of my dollars then you can bet your ass i expect all sorts of guarantees. i'm not handing them over to get some tokens that might be worth something if they feel like it.

So what happens if the company folds or has its bank account closed with all the fiat they supposedly have? this is highly likely to happen, and its likely to take out some exchanges with it too

With the current value of USD/USDT at 0.9081 I'd say its already a failed coin, with its one purpose of maintaining the dollar peg lost

its like nubits all over again

So, does anyone know what's going on on here? 1 USDT is now worth 0.92 USD.

The price of USDT started falling with this announcement https://tether.to/announcement/

The drop is causing a huge upward gap in prices between exchanges using USDT, and judging from trollboxes many people dont even realise its not USD on these exchanges

for now I'd simply avoid USDT and the exchanges using USDT instead of USD. I can personally see it all ending badly

I had some Tether on poloniex, I was using it to freeze my bitcoin's value, but when I had watched the price decreasing continousely, I sold them for bitcoin at $0.98.

I see, thanks. At the end of that post, they have, "First they ignore you, then they laugh at you, then they fight you." So, Teather is seen as a threat to the established banking system?

1 USDT is now worth 0.92 USD?
i choked it with, poloniex, bittrex and bitstamp. for every exchange the last price while typing.
bittrex: 1350.99999998 USDT
poloniex: 1344.16910027 USDT
bitstamp: 1233.87 USD

trex: 1350.99999998 * 0,92 = 1'242.9199999816
polo: 1344.16910027 * 0.92 = 1'236.6355722484

edit and yobit:
1270.00000000 USD

edit 2:
ripple:
bitstamp: 0.03158 USD
polo: 0.03421586
polo * 0.92 = 0.0314785912

=> this is a problem for me. because i sold BTC for USDT at bittrex.

http://coinmarketcap.com/assets/tether/

current value: $0.922114


https://cryptowat.ch/kraken/usdtusd/12h

Kraken value: $0.9105

Tether is very useful as a hedging on the main investment. If Tether is a failure it is expected to have some impact on the rest of cryptocurrencies. But, leveraging it short you can have some protection on your main investment with a small loss risk (USDT won't even be worth more than 1:1) in case it is solvent and there's no negative impact on main investment.

what do you mean tether pump, tether is flat rate price, is never pump or never dump
tether price alaways 1 dollar, 1 USDT = 1 USD
when you see tether pump or dump frend and price exstrem over and under one dollar

What are you talking about? That's the theory.... but current REAL prices are almost 0.9:1 at the moment.

the problem here is the lower USDT goes, the higher the prices are for all coins artificially on these exchanges, & as the price moves up, noob traders buy more of them and the rally pushes higher as other exchanges follow.

imagine a situation where USDT falls to 50 cents, (like nubits did) the noob traders are going to think theyve hit the jackpot when they see their USDT balances have doubled, but will be in for a shock when their 10k USDT is only worth 5K USD

If USDT falls to 50cent I will be the one hitting the jackpot :)

the exchanges should stick to btc and eth, tether to me is a scam.

What do you guys think where can this go? Would it be smart to just sell it or wait for bitfinex/tether to resolve issues? How much is it possible for this to go back to 1$?

well it isn't truly fungible at the mo but i am sure they will inject capital, probably get polo to give some of the money it makes off masterstrokes and such.

It's strange because on Polo they specifically say it is USDT, but on bitfinex for the most part it is presented as actual USD. Do they have the same policy if tether goes kaput? ???

it won't go kaput overnight just devalue which would mess up a lot of stuff but probably increase eth and btc price. when i first noticed it i thought it was USD. it is purely used as as a selling piece to people as USD are known the world over, but also to keep the financial regulators off there backs. if it failed it would lead to regulation, therefore the exchanges will work this out, but like i said they should stick to btc and eth, but i guess there is a lot of money made using it.

a bank run would kill it overnight mind.

http://shrani.si/f/16/11K/1Kn2bsvO/4/train-reck-gif-sandbox-1.gif

RIP

that's implying it's fractional reserve. it may be a shit show, but i really don't think it would've gotten anywhere if it couldn't meet all of its obligations.

How you doing man?
Seems that stable Tether got rekt. Maybe it will moon next year  ::)

i took the loss and changed my USDT to USD @kraken.

Good job, looks like you just changed worthless shit to USD  :)

But you aren't using their service?

hell no and i never would. what they're offering isn't reassuring enough. bitfinex are involved and they've always had a serious lack of transparency. this is no different.

I guess my point was that if they offered to convert Tether into cash it would be complicated and if for some reason they could not (and there could be legit ones) people would complain.


I was always very wary because they claimed to be transparent and audited but there was zero evidence that they were from what I could see. So that was a red flag.

But why did Poloniex and others get involved and allow them to list?

Krakens definitely trying to push USDT over the edge by opening margin trading.  

My 5c is that this will all workout fine for Tether in the end and the usual bunch of people with inside info will have made some good money out another creative interpretation of the latest money making trend in crypto land- over dramatise the latest news (block size debate, exchange banking issues), get cointelegraph etc to play along, wait for the weak hands to panic, collect their crypto at bargain prices.

In terms of the margin trading, if Tether is actually in trouble, that could help shore it up IMO.  As for what is behind some of the strange responses I've seen on reddit from a Tether dev -- I have had similar thoughts as yours concerning the FUD manipulation being employed.  I can only think of three reasons to make the statements I saw: either (1) Tether's really aren't backed up fully by reserve USD or (2) they are backed up by reserve USD, they just want to create enough uncertainty so they'll be a temporary Tether price drop that they can profit off... OR finally (3) Tether is fully backed by USD but they can't fully say they have the reserves because by making statements like that they could be exposing themselves to libertydollar type prosecution. I'm hoping it's #3, or at worst some of 2 and 3.

Astute observations.  It’s not #1 and while #2 would be evil-genius clever, it’s not the issue either.  (Wire troubles mean neither Tether nor Bitfinex can wire funds to Kraken to buy up all the cheap tethers). :-(

Tether's purpose is very different from most coins. If there are other actions being taken on it and it's value becomes diminished beyond it's function then it will cease.

"Scam" is thrown around so much in this forum it's lost meaning. Most "scam"s are not even close but rather kneejerk reactions or FUD.

More options for trading and settlement are better overall.

Im not sure if that guy is that dumb or just trolling.


Anyway, im done with so called "digital dollars" that supposedly stay pegged with the dollar. Everything tried thus far has been a failure (anyone remembers nubits?). I wish there was a way to do this so you don't need to get fucked by the taxman if you want to go to fiat temporarily to profit from a bitcoin dip, but all those "cryptodollar" coins keep crashing eventually.

BitUSD is still worth 1 USD. So far Bitshares is the only one that has accomplished parity for this long.

Tether.to is a service that prides itself on a transparent company. For this purpose, a company publicly makes available its reserve balance. However, there is a discrepancy of millions of dollars between your reservations and the article number in circulation. One thing is certain, this is a very unusual situation. The company issues USDT tokens, which have their value tied to the US dollar. Currently, current liabilities are $ 42,313,582.47, which is a relatively high amount. However, its assets represent only $ 41,371,231.12. The difference between the two numbers is almost one million, which is marked on the page as negative equity.

this is what happens with a centralised peg!

More reason why I cant wait for Bitbays decentralised rolling peg this coming Winter.

bitbay this winter are doing one. http://bitbay.market/about/pegging/

Tether ( USDT ) Will prolly crash to much negative news about this and who knows is happening behind the scene, also with lots of exchanges suspend USD deposit/withdrawals. I think Tether will be first to crash and exchanges that use this will take a hit, in particular bitfinex.

But we hope that will not happened since it will have a negative effect on BTC but as always it will recover.

what is libertydollar type prosecution, and what would be the downside of having USD reserves?

There was no reason for nubits to succeed, I predicted its failure a while ago.

How does bitUSD make any sense? You have to put in 2 USD to get 1 bitUSD. The market seems to agree, less than $1 million in bitUSD.

I don't think its hard to have a digital asset pegged to fiat. As I pointed out, all you need is:

1. 1:1 reserves that are distributed in banks with insurance in different jurisdictions (including security of the bank)
2. third party audit of the bank accounts
3. security of the digital asset
4. agreement of the company to exchange digital assets and fiat, meeting KYC/AML laws.

None of the attempted pegs, including tether, has met these requirements. Yes, this requires a centralized authority, but it is impossible to have a pegged asset without one, simply because a trusted entity has to secure and possess the reserves. All attempts to use financial manipulation to secure a peg are going to fail, including the rolling peg idea someone posted.

On its face, a rolling peg idea doesn't make sense either. People want an absolute peg. If you make it rolling, it defeats the purpose.

https://en.wikipedia.org/wiki/Liberty_Reserve

the guy got 20 years.

usd reserves means centralisation which means the money can be frozen or seized.

that's the whole point of bitcoin. that can't happen.

I'm not even up for owning Tether. I've already tried trading it on Bittrex Exchanges but It has limitations. Regardless of the fact that It isn't a scam, The USD depo/withdrawal restrictions would slow down it's growth.  

Clearly there was a lot of shadiness going on by the company, independent of its core business. I imagine that it is possible to run a digital pegged business without running afoul of authorities (tether, eg, adheres to KYC/AML rules). If it would not be possible, then it would be bad for the underlying currency (USD, eg)

Your idea for the "ideal" digital asset pegged to FIAT requires heavy centralization and gateways. That defeats the whole purpose of cryptocurrencies and creating an ideal cryptocurrency ecosystem.

Bullshit. Bitshares' bitUSD has held a $1 peg since 2014 without any centralized authority.

Ummm... this is a half truth or you don't understand how bitUSD works. I'm not sure which one.

You can buy 1 bitUSD with $1 USD (plus a small margin for traders) on Bitshares' decentralized exchange. Since bitUSD's inception the ecosystem's dynamics have been heavily fine tuned and experimented with. Also, the market has since matured greatly with the creation of easy to use market makers bots (such as https://btsbots.com/), as well as privately developed and operated bots, which people run to automate market making operations for a profit. That has resulted in the margin of buying 1 bitUSD not being more than $0.05 USD for over a year now. As the market matures further, that $0.05 spread will eventually diminish closer to $0.

The only reason you would need to spend more than 1 USD (plus the small margin) is if you are are bullish on Bitshares' value and sought leverage to increase your trading profits by selling the BTS token during or after a bull run. Your statement that you have to spend $2 USD to buy 1 bitUSD is quite misleading. Possibly that was the intent? I don't know...

Bitfinex is not the company to run a legit business. They don't seem to care very much about ignoring the stuff any diligent people would pay attention to. Stuff like their token issuing might have got the job done but probably flouted a million laws.

I found that statement on what I thought was an official bitUSD page, but now I don't find it.
As you state, right now it is 0.05 lower.
If it works, why is the market cap so low?

After doing some looking online, I don't understand how it works. According to this video, https://www.youtube.com/watch?v=YD8i2Py9Paw, a bitUSD is made up of a variable number of bitshares, such that the value will always be $1. But that does not make sense, firstly it is dependent on the viability of bitshares, second, where are the bitshares coming from to insure a constant value?

If it's dependent on bitshares, then how is it not centralized?

Who is behind Tether and who owns Tether Ltd?

That is difficult to answer, but from what I can gather there are several reasons:

1. There was a big FUD campaign when Bitshares first came out saying Smartcoins (then named bitAssets) would never work and their value would collapse, and that scared a lot of people away. Google Preston Byrne and bitUSD... his set of three articles were the most quoted "evidence" that bitAssets would collapse. But really those articles were just speculation, and after three years of Bitshares holding its Smartcoin pegs these detractors have pretty much gone silent. I guess they are starting to realize they may have been wrong (if they haven't already).

2. bitUSD had two competitors in the space. Tether and Nubits. Tether and Nubits had much more volume and market depth closer to the $1 pegs than bitUSD. They both put huge buy and sell walls close to the $1 peg. Nubits paid people to do so by use of inflation, and I guess Tether raised investment capital to do so. Up until very recently, there were not many market makers for bitUSD and the spread was much higher than it is today and there was less market depth. Because of the bigger market depth and smaller spreads, Nubits and Tether killed bitUSD as far as usage.

Then Nubits had a big collapse during the summer of 2016 where it went as low as $0.22, and ever since then Nubits has seen much less usage/volume. At this point, Tether is easily the most popular and liquid USD pegged asset. However, recently even Tether is showing some cracks in its armor. There is evidence that they are closely associated with Bitfinex, both of which are having monetary issues. It is showing in Tether's value which is currently $0.968, and has recently gone as low as $0.921. bitUSD has held a tighter peg than Tether for two weeks running. If Tether collapses just like Nubits did, then I think everyone will finally understand that bitUSD is the best solution.

Nubits, Tether, and Bitfinex's issues highlight that they may not be the best solutions, and they are both subject to many issues that bitUSD is not.

Nubits is like a "decentralized" federal reserve, which is still pretty centralized, prone to errors in judgement from Nushare holders, and more vulnerable to exchange default (among other issues.)

Tether is completely centralized, and subject to all of the downfalls that brings... subject to the Tether company not honoring the $1 peg (it is held only by a promise from Tether to do so, and if you read the excerpts from the ToS it is not a promise at all), subject to seizure by governments, and it is also more prone to exchange default (among other things).

bitUSD is completely decentralized and runs on free market principles. Also, recently due to market maker bots being made easier to use (such as https://btsbots.com/), bitUSD is slowly closing the gap as far as liquidity and market depth. Before market maker bots were only ran by a few individuals who kept the source code private, so there was not much market making going on.

Instead of typing up a long post of how it works, which I admit is difficult to grasp at first, I think this answer from Bitcoin's Stack Exchange is a good description. There are a ton of articles and videos on it. Bytemaster released this video in 2013 before starting Bitshares explaining how bitUSD would work, and it helped me understand. I still think it is one of the best descriptions: https://www.youtube.com/watch?v=-8ZJ3xTDwbI



Bitshares was one of (if not THE) first working smart contracts. The decentralized exchange and shorting/covering/defaulting of Smartcoins like bitUSD is all done autonomously by the Bitshares decentralized network and blockchain.

Apparently, Bitfinex owns at least some of Tether Ltd. I speculate that they are the ones that started Tether, but they needed to gather investors in order to put up the huge buy and sell walls close to the $1 peg. So, probably miscellaneous private investors hold the rest. This information has never been made public.

Yeah it really sucked how the $1 price went down just when I had a $3k in there >.<, I hope they fix this issue

I have to do more thinking on this, but it does not seem to be fundamentally sound. Social consensus is not enough to maintain a market peg. Saw the video you linked, but if the peg is based on selling long and short, then a stable price would depend on there being an equal volume of long and short selling, which cannot be insured. Here is the link where I got the idea that it takes 2USD for each bitUSD:
https://steemit.com/bitshares/@xeroc/what-makes-the-bitusd-than-nubits

According to that article, all bitUSDs are actually borrowed from the network, and require 2x the collateral. Which does not make it practical to have bitUSD.

I am thinking of converting my bitcoin into tether right now due to the high price. Anyone knows where I can find the ANN thread for them here on bitcointalk. Wanted to see some discussions before making the purchase and risking all my bitcoins with it.

Tether has faced tons of problems with American banks, then what happened? Its value downed to $0.90, after some time its value went above $1.00. What is the thing determining its price? They would say one tether is always one dollar...

Isn't that the point though, to keep its value close to 1$, so in the future people can always rely on it to keep the value preserved. It is still averaging around 1$ as of today. I am curious to know as well, how are the swings decided, because somedays there is just no demand for it, and it can't crash so far down.

it actually went to 1.08 but could have gone higher someone mentioned 1.13. at the last big crash the price was high, when bitcoin pumps it dropped a bit, you start to see a pattern.

It has never gone to 1.13 from what I have seen on the price graph. The maximum it has touches seems to be 1.05 usd , and the lowest has been around 0.91 usd. Also instead of dropping, it actually seems to have gone up with bitcoin increasing. maybe because of the increase in investments when people want to leave bitcoin at such high prices.

I was thinking of using Tether as a dollar proxy in trading swings in BTC and others.
That should work better when most cryptos go up and down at the same time.
It has 100 million units and good volume. Should be fine for risking small amounts of
money for a few days between buying/selling other cryptos.

Someone just pointed me out to a clause in their Terms and COnditions, saying that it should not be used for money laundering. I am unsure what all does that cover. But if they have the ability to pull out coins from someone's wallet who does that, then it would be the most stupid investment ever.

To my knowledge... the Omni layer, which is what Tethers are issued on, does not have this feature.

You are right. Someone just answered my question about Tether on another thread here: https://bitcointalk.org/index.php?topic=1956181.msg19428993#msg19428993

Actually it is indeed screwed up. Can't trust them with my btc it seems.

I think the safer decentralized USD-pegged assets at the moment are bitUSD and the STEEM dollar... because they are at collateralized and autonomous.

However, Tether does trade at a smaller spread. So, if you are day trading (or day+ trading) Tether is probably the best option. If you are a longterm bear though, bitUSD/SDdollar is probably a better option. It is yet to be seen if Tether can hold up in the bearish of bear markets.

See my above post on bitUSD. It is not stable. Neither are Steem dollars, there is no way for them to maintain the peg. That's why the usage of both of these are minimal.

To those of you asking why the price of tether fluctuates, it is simple - supply and demand. No one can say, "ok, I am creating a currency and it has a fixed value of $1.00 for each unit of the currency." If that were the case, then anyone can create billions of dollars out of thin air by making a cryptocurrency. Read the tether whitepaper if you want more information, and there are few other threads like this one. They are taking actions to make sure that the peg is maintained, but it is not foolproof.

If you cannot convert your USDT into USD, then obviously it cannot have a value of 1 USD each. That's why the price fell below $1, when there were problems with American banks. When ppl want to quickly cash out BTC and others into something stable, ppl convert it into USDT. But if there is not enough supply of it to meet that demand, then the price has to go up, which is why you have periods when it is above $1.

I'm actually worried that almost any day now the crypto Market will crash. Which exchanges actually use USD and not USDt?

You can say what you want, but historical price graphs show both being quite stable compared to other cryptocurrencies and crypto assets... I prefer to analyze them based on historical data rather than conjecture.

The usage of both is slowly growing, the spread is slowly getting smaller, and liquidity is slowly rising. It takes a while for such a design to mature, but it has come a long ways since its conception.

To analyze solely on the basis of historical data in any financial market is a big mistake. Past performance is not indicative of future performance. With such low market caps, it is easy to maintain a peg. That does not imply underlying soundness. When there is very little or poor quality data, it is better to throw it out then to make decisions based on it. You mention "conjecture" but I have clearly stated the analysis that underlies the rationale in previous posts. You have not pointed out any flaws in the reasoning.

for something claiming to be what they are, there should never be the slightest question of price variance. if they can't offer a rock solid peg then they serve zero purpose. pegs don't survive. those two have already blown it, tether won't be an exception either.

My opinion is not based off of purely historical data, but also logical reasoning. In my mind, you have not proven why bitUSD will not work. Half of the things you posted stemmed off of misunderstanding how bitUSD works, and the other half is conjecture based off of incomplete information. bitUSD has been thoroughly analyzed and tweaked over the course of several years by the Bitshares community. There are many hundred page long threads of discussion analyzing the merits of such. You just started trying to udnerstand it a week ago...

I don't have a lot of time to spend on the forums nowadays. I am working two jobs and developing a web site in my spare time... effectively I am working three jobs. I have nothing to gain by trying to convince you otherwise, so I prefer just to let the free market prove you wrong over time. (As it has the past few years, but apparently that isn't a big enough sample size for you...)

Not weeks ago, months ago. Initially you stated I was misunderstanding it, but then I posted the link which confirmed what I said. But I think the free market will prove me right. So we will see in a few years who is right. We disagree on the interpretation of the past few years. It has 3 times been below $.80 and almost always is trading about $1.00 or below $1.00. I do not call that stable.

Ok... it seems there is some things I still need to clear up.


You were wrong in stating people need to pay $2+ to get $1 of bitUSD. People don't need to pay $2 for $1 worth of bitUSD unless they want to bet on the price of the Bitshares token rising against the dollar. If they don't want to do that, then they can simply purchase $1 of bitUSD off of exchanges for approximately $1.



Compare the stability of bitUSD compared to other cryptocurrencies and crypto assets.... the difference is obvious. They might not be stable enough for your liking, but they seem to be stable enough for a lot of people based off of usage statistics.

Apparently, bitUSD, bitCNY, etc. (plus all other smartcoins) are stable enough to garner $1,861,211 worth of volume, and a combined smartcoin market cap exceeding $14,788,736. The volume metrics do not even account for trading against user issued assets like Open Ledger's IOUs. A large percentage of volume is therefore not tracked on Coin Market Cap, and the total Bitshares DEX's volume is $9,741,567.

https://coinmarketcap.com/exchanges/bitshares-asset-exchange/
Click on each asset to see the Market Cap of each tracked Smartcoin.

More accurate volume statistics:
https://cryptofresh.com/assets

In summary, although they might not always trade $1 to $1, Smartcoins are sufficiently stable enough for their respective use cases (hedging cryptocurrency investments, ecommerce, etc.)


Many people have said the same for the past few years, and they are slowly being proved wrong. You are late to make such accusations IMO. Preston Byrne and company are slowly but surely being made to look silly for such conjecture.

We will have to agree that we disagree, except that I stand corrected on needing $2 for $1 in bitUSD. I do not know why you are comparing bitUSD to other crypto. The only comparison that makes sense is to USD and to other pegged assets like USDT. If you look at historical prices of USDT vs. bitUSD there is massive volatility in bitUSD while there are only a few instances in which tether is not exactly $1.00.

Right now it is off 1.7%! That is not a small amount when we are talking about an asset whose only purpose (as European Central Bank pointed out above) is to maintain parity with the dollar.

As to whether people are being proved wrong over the past few years, that is conjecture on your part. The way to evaluate bitUSD is to look at its market cap compared to the total market cap of crypto, and to evaluate it over time. If the total crypto market cap doubled, there should be twice the need for bitUSD. If bitUSD as a percentage of total crypto decreases over time, then the market is proving that bitUSD is flawed. A second way to evaluate it is to compare it to other "pegged" USD assets, such as USDT. Because if ppl feel less of a need to get out of crypto, the value of all pegged assets could fall. But a comparison among them is fair. Right now the data are:

bitUSD: 3.95 x 10^-3 percent of total crypto market cap ($107 billion), bitUSD market cap of $4.2 million
USDT: 0.12% of total crypto market cap, $130 million

Right now tether has 31x the market cap of bitUSD.

Let's see what happens to these numbers over time. I predict relative market cap of bitUSD will shrink, both in relation to tether and overall market cap.

Adding up all the other pegged assets, other than USD, does not really have relevance, because we are talking about pegging to USD. Naturally the number will be higher if all the other pegged assets are included.

Tether is good, but not for investment.

You claim a more fair comparison is bitUSD versus Tether, but that is an unfair comparison. You can't compare Tethers to bitUSD... they are two completely different things.

One is fully decentralized, and pegged by free market dynamics on a decentralized exchange.

The other is fully centralized, and pegged by a promise from a company to maintain the peg on centralized exchanges.

There are some big differences there.

Even comparing Tether adoption versus bitusd adoption is flawed. Tether started with a large amount of private investment capital, and was able to instantly use that to create a large amount of liquidity. I speculate that it also used that to gain trading pairs on some exchanges, because it almost instantly became a "base" pair on some of the biggest exchanges trading against multiple cryptocurrencies on each one.

bitUSD on the other hand has to slowly and organically grow over time due to its free market based peg. As usership grows, market depth and liquidity will increase, which will also reduce the spread and volatility. But it will take a while to reach "critical mass" where the design works optimally.

By your own stated metric, bitUSD is actually doing pretty well.

Oct 2014:
bitUSD:
Market Cap: $392,539
Bitcoin:
Market Cap: $5,241,480,575

Today:
bitUSD:
Market Cap: $4,252,534 +1083%
Bitcoin:
Market Cap: $41,066,547,811 +783%

But your metric is flawed because it doesn't account for market dynamics. Right now there is higher demand for bitUSD and Tethers due to the bearish nature of the cryptocurrency market, as evidenced by ballooning market caps of both in recent time. When the cryptocurrency market is bullish, their market caps will shrink. This metric will be different if taken at a bearish or bullish time in the market.

Not to mention the combined network effects of all cryptocurrencies (and even Bitcoin alone) is exponentially larger than the network effect of bitUSD, therefore they will grow at a faster rate. Bitcoin's (and other cryptocurrencies) usage, value, and market cap growth is effectively 98% based on its network effect.

You keep citing that bitUSD is highly volatile, but fail to see that it is way more than stable enough for one of its main uses (which is the main reason why people use Tether too) is to hedge from cryptocurrency volatility or a cryptocurrency bear market. Comparison versus crypto was meant to show that it is quite stable over the long run... which again is backed up by historical data. It always comes back towards $1 even though there might be small fluctuations in its value away from $1, and thus it is a good asset to hedge against a bear market. It serves this purpose well.

Well tether idea is quite good, the problem is the way it have been done, the last post they did is about they are getting problems with banks for usd withdraws, it is not good, second problem is they have a % of his reserves at BTC and in this way they are getting a big volatility risk, and thirs one and more important for me, they are not being capable of get the peg stable

https://i.imgur.com/VRiAKOb.png

the only way to do it is to get listed in a full licenced exchange which allow usd/usdt pair and get the 100& of the reserves in usd

of course it is only an opinion

My understanding is that there are no reserves in BTC. People can trade BTC with USDT as they see fit. But only USDT are created for USD in reserve. Can you clarify if this is not the case?

Suggest you read the post that started this thread.

Why Bitbay implement their rolling peg people will not use Tether as with Bitbay's peg wallet owners can vote to decrease or increase the frozen coins supply therefore owners of Bitbay can  see their 'peg' price increase!

Thought tether wasn't meant to increase or decrease in value. It was meant to be equal to US dollar or tether to the dollar or something. Very confusing.

According to your own post (the one that started this thread):


In other words, no reserves in BTC. Why did you direct me to your own post when it supports me?

I also discussed this exact topic in either this thread or another one on tether.

The problem is that they simply didn't manage so far to get a backing by real money. It's not like you could change it to USD at Tether they simply don't have that amount of USD.

If you read the original post further, I point out that the terms of service contradict the "pegged one-to-one" claim. Tether specifically disclaims any obligation to redeem Tethers for money. I was referring to your statement about Tether having USD in reserve - what relevance does this have if people with Tethers have no actual claim on those reserves?

Not wasting further time here, no one knows what they are talking about.

I replied to his post, @sp_skeptic, but you replied with irrelevant links/information.

This has nothing to do with anything, I was only commenting on whether there are BTC in reserve. I agree with you.

I did not propose as a comparison to BTC, but rather as % of total crypto market cap. BTC has been decreasing, relatively, now only 40% of total. I only posted the numbers so that in the future my calculations can be verified.


According to their website, they do:
https://wallet.tether.to/transparency

How can i buy tether, cant buy them from polo :(

why do you want to? you're asking on a thread that's spelled out in excruciating detail why it's a questionable piece of shit that'll end up failing like everything similar before it.

Friends. All, all in ICN. !!!!! You will be rich ..... !!!!  Big pump...!!!!

I'll just wait

Posted From bitcointalk.org Android App

The price doesn't pump but the amount of tethers in circulation does. Market cap is now about $320 million. Tether's market cap is in some ways more substantial than normal ones, because it is being compared to market caps that are inflated and don't represent a USD redemption value.

how does  tether make money then ? proving such a good service like this

Seems Tether is moving to the ethereum blockchain.  They have issued a ERC-20 USDT token in collaboration with Bitfinex.

https://blog.ethfinex.com/announcing-the-erc20-tether-c84cc33f076f3

Wether it is a scam or not, I'm not sure but recent news make it look a bit fishy.

https://cointelegraph.com/news/tether-really-isnt-a-scam-company-promises

http://www.newsbtc.com/2017/09/05/yet-another-25-million-tethers-created-blue/

http://www.coinfox.info/news/7564-tether-issues-70-million-additional-usdt-tokens-in-september

I don't know if Tether is a scam or not, but I have been interested in it, since it seems like a good place to move your money when things are crashing.  I'm just not good enough of a trader or recognize the signals of a crash ... I hope it does go to Etherium.  And if every tether is truly backed by $1, then it seems like it may be the safest cyrpto ever. 

But as others have mentions, selling coins for a dollar and buying them back for a dollar, while reportedly tying up a dollar in cash for each tether, doesn't seem like a profitable business model.  How do they make money?  Transfer fees?

When they need money, they just create more tokens and sell for $1 each. The problem is, it's unlikely they would be able to redeem every one of the 300 mln tokens they have issued so far (they don't even have to do it as stated in their TOS). According to the CoinTelegraph article I referenced:

That's true of any centralized exchange. When the price is falling, people want to move their coins to exchanges and sell for USD or other fiat currencies to preserve capital.

The problem is that holding USDT on any exchange doubles your third party exchange risk. Let's say you have USDT on Bittrex. If Bittrex gets hacked, your money might be gone. And if Bitfinex gets hacked, your money might be gone too, because they are the ones who back Tether.

Yeah, at first I just think Tether like a virtual USD for helps us keep safe our money when the crypto market has strong volatility but we do not want to withdraw our Bitcoin to FIAT. But after used and read the news from CoinTelegraph, it makes me doubt about keep my money in Tether!

Doesn't look pretty

https://hackernoon.com/the-curious-tale-of-tethers-6b0031eead87

So, is there an alternative crypto to Tether that is actually backed by fiat and transparently audited?

The thread title was correct. Tether is clearly not a scam. Okay so they have had some trouble maintaining the peg to the dollar, but this just means that it is not perfect. There is an obvious need for a cryptocoin that is pegged to fiat, and if tether disappeared something else would just replace it.

Tether can pump to about 1.05 and it can dump as low as .90 but any more or less won't happen.

Unless something catastrophic happens to Bitfinex, like the FBI seizing their domain and bank accounts or another massive hack like last year. If that happens, the fate of Tether is tied to Bitfinex; Tether is owned by Bitfinex's parent company. If something like the aforementioned happens, the value of USDT could plummet and never recover.

This would be disastrous, too, since the circulating supply of USDT has ballooned from < $20 million USD to > $400 million USD since Bitfinex lost banking capabilities. If we are to believe that money wasn't just printed out of thin air, then that increase in supply represents USDT held on exchanges like Kraken, Poloniex and Bittrex. People holding USDT on those exchanges probably don't even realize the third party risk involved.

Funny way to put it, but that would not stand up in court. Even if Tether were to one day exit scam they could still be brought to justice and their accusers would have the right of law. Remember, nowadays legal courts do see the difference between letter of the law and spirit of the law. It's a good move to more ethical legal practice.

Good point. I never used tether for the specific reason, I dont see why I need towhee I can exchange the crypto for USD in the first place.

I'm not so sure. As far as I can tell, Tether = Bitfinex. And at this point, Bitfinex is operating like criminals. I think Phil Potter said as much about their banking practices. I bet these guys are smart enough by now to stay out of countries with extradition treaties.

Speaking of their banking practices, it's been a solid 6 months since fiat withdrawals were operational; can anyone say "red flag?" For a little while, we'd hear excuses about time needed to form new "banking relationships"... then crickets for months.

At best, they are blacklisted by the banking system, which leads one to ask why? And at whose request -- the US government? At worst, the inability to move fiat money is covering up for insolvency.

Hey, I just used Tether's online wallet with Google Authenticator and it's very easy to grasp for the average person. Perhaps someone looking at this situation can help make Tether's strength an unshakable peg to local currency. At least it takes all the elements of speculation out and isn't that what many "duffers" are worried about? Frankly, this is far more interesting than Ripple.  :-*

Used it how? Was it you giving them money, or you taking it out?

Has anyone, anywhere been able to send USDT to tether, and then ACH that at a 1:1 rate back to their bank account?

I understand basic concepts of 1 USDT = 1 USD and backed by 1$ in Tether account, but what confuses me is how USDT token really works. All I was able to find - it uses "omnylayer" and "all transactions of Tether are bitcoin transaction". What I am interested in is following:
1. Does Tether have it's own blockchain or uses Bitcoin Blockchain? What do I hold in my wallet if I have 1 USDT?
2. What happens if I sell my BTC for Tether, and then Withdraw it? What asset will be in my wallet? BTC? Tether? BTC's marked as redeemable for Tether?
3. When I send Tether to another Tether user, transaction being processed by BTC blockchain, meaning I'm really sending BTC's. Why can't I deposit Tethers as BTCs? Who holds private key that signs tether transactions?
4. How Tethers are being issued? I mean if price of 1 USDT fixed to be 1 $ they have to "print" tethers and follow it's circulation between users. But how the hell is this possible if it all build on top of BTC blockchain.

Which exchanges are using Tether and how to avoid those exchanges? I don't want anything to do with tether but want to have flexibility to trade.

Tether is very risky. See below link.
https://medium.com/@bitfinexed/the-mystery-of-the-bitfinex-tether-bank-and-why-this-is-suspicious-a8a6407a1241

The chart of Tether looks great on Bitscreener: https://bitscreener.com/coins/tether/chart_gallery
https://i.imgur.com/y6qEURN.png

I'm assuming (hoping) it was intended as a joke?

I put no trust in Tether. If you want to move crypto into fiat for temporary stability (say you're anticipating another short-term bitcoin crash) without incurring the tax liability that comes from holding ACTUAL fiat, then tether might be your best option, but I wouldn't leave it there a minute more than absolutely necessary.

i come this thread after reading this article
https://medium.com/@bitfinexed/are-fraudulent-tethers-being-used-for-margin-lending-on-bitfinex-5de9dd80f330
and after search for tether. it looks like to make crypto economy like a balloon.
i think bitfineks and all of other tether use exchanges must stop it,
or WE must stop to use them

that guy might have a point but he's so freaking venomous that i wouldn't take anything he says as any type of truth. i don't think anything would change his mind now.

let's wait and see if this audit ever arrives.

in the meantime they created another 20 million tonight. nice work if you can get it.

How can i be sure that tether wil keep its value over time at 1 usd. What if suddenly dropps? How can I be calm when trade USDT

You can't. At this point. It's an act of faith.

It's kind of ironic that one of the biggest crypto companies is underpinned by something that combines the worst aspects of crypto and fiat and adds some new ones too.

I don't think Tether is a scam either. The business model simply makes sense and it's profitable, why would they make a "scam" out of it. Yes they did had a problem in Taiwan but since then everyone is mocking them and talking about being dishonest and scammy, it's normal that every business in that sector (blockchain) might experience such issues, the entire concept of cryptocurrencies is new and many governments don't know how to handle this innovation. For Tether there is definitely a good market and there will be other competitors who will be joining, so it will have to innovate to some extend as well, it's nevertheless though not a scam and everyone who says so needs to back their words with some hard proof evidence.

tether did wild prices on 12 november. how much did they print the money these times?

Are there still problems with withdrawals?

What would be the proper way to run a business like this? Since tether tokens are distributed to individuals who deposit USD, who can then trade those tether to other people, they cannot by name have a claim on the money in the bank, except through ownership of USDT. So they would seem to be forced to open a bank account in the company name (in which case how do you solve the problem of them absconding with all the funds?).

This is crazy and it's gonna explode very badly if they continue this game.

i heard that they just printed 20mil new Tether coins, out of the blue...
so they can print it? its insane..

There is a lot of bad publicity around tether nowadays but I think that they bring some new capital by pumping bitcoin into crypto overall which is good even though it might be a scam.

Once that they reach the 900 million tether's of max supply they are not going to be able to print more of them, i mean, to create more of them because the max supply is less than one billion of tethers
They have been just printing at least more than 50k tethers a day, maybe more than 150k when the marketcap is moving so fast, and this is why tether sometimes reaches more than $1,02, maybe $1,01, and i remember that it touched more than $1,06 a few weeks ago when everybody was moving their funds to USDT.

Here to let everybody understand as Tether still in top 100 marketcap cryptocurrencies. As every currency price depends on regular factors (supply/bids/asks/...) how this coin can keep stability with relating to dollar price? Moreover, traders use tether to freeze their bitcoin balance when bitcoin dump (as mentioned above). Tether really made me confused compared to other coins and i didn't really expect it to be considerated as a scam. May be this post highlights the whole perspective about Tether

says who? i can't imagine they're gonna create something with a hard coded limit like that especially when it's 1 to 1 with an infininte currency like the dollar. it doesn't make sense.

all it is is a token under their control. it ain't a real cryptocurrency.

this is the same stuff tether, does, you can do this with all types of products even bitcoins, if you see the bitcoin futures, that are currently beeing offered,

to big problem about this crap is that the people doing that cause systematically poverty because they claim to create values out of nothing, and burden the productive economy with it, (even if it is quite productive in some reasons) this leads to unrest systematically sooner or later and for good reasons

is Tether audited? like, do we know for sure they have the money in the bank they're supposed to? can you receive USD for your USDT from Tether?

what is the legal risk?  is there a chance the US government shuts Tether down?

Tether is not located in the US, so is outside of US jurisdiction.

I think they need 3rd party audits, but as far as I know, they don't do it. Which is very curious why no one else replicates tether with 3rd party auditing.

Clearly more people are investing USD to tether considering the new USDT they issued, despite problems with withdrawals? Or are the withdrawal problems over?

Can anyone comment on the tether blockchain, is it centralized? How secure is it?

outside US, yes.  but they have USD bank accounts.. US gov can basically seize USD anywhere in the world.. i saw this happen in poker.  i see Tether as a growing risk to the crypto world.


agree


i'm under the impression that USDT --> USD is like 7% vig. can anyone confirm?


its built on Omni.. thats all i really know.. somehow Omni market cap is <10% of Dogecoin  ::)

There are problems with withdrawals but does that also mean that people don't buy thether with USD? Because it also might be the reason for printing more.

Those poker offices that were raided were all in the US, right? Despite that some of them were not US companies.




what is 7% vig?


They claim to only issue USDT for each USD deposited in their bank. But once that USDT is created, it becomes freely tradable, so anyone can exchange any crypto for it, without having anything to do with USD.

So, the only way to create Tethers is to deposit real dollars to Bitfinex. But, there is 20x more Tethers since the very last bank (Fargo Wells) stopped serving them. For me, the real value of Tether has dropped 20x. But I may be wrong, as I am not an economist. Anyways, have never owned a fraction of USDT for a fraction of second. Will never touch it. The bad thing is, when shit hits the fan, there will be no safe haven. Tethers, BTC, alts, everything will go down like hell and there will not be enough time to convert the crypto assets into real fiat. Or will it?

Really good thread that illustrates many of the issues discussed here:
https://www.reddit.com/r/Bitcoin/comments/7dkwm8/btc_bounty_to_whoever_uncovers_tether_banks/
Could be a huge crash in the crypto market if the speculation that USDT are being created out of thin air to pump up the price of BTC is true.

If it is not true, the crux of the matter is likely that no banks want to accept USD knowing what tether is, for fear of application of not yet invented US regulations (and what happened with wells fargo and the taiwanese banks). Therefore tether cannot publicly have an audit done or reveal where their banks are located if they do have new banking partners. This is also why there are no competitors to tether in the USD space.

BUT, it raises the question, why can't a 1:1 peg be done with other fiat currencies? Is it is being done? Because then all one has to do is exchange USD for other fiat and exchange that for digital tokens, and banks may be okay with the deposits?

I will also stay away from tether for now.

According to this post:
https://cointelegraph.com/explained/tether-case-explained
Bitfinex has fixed the price of USDT to USD at 1:1. Fixing prices is a big no-no in my mind.

It looks the tether supply gets manipulation by the developers and it seems to give fixed rate for each tether seems just like a scammy way. I will never try to buy this scam manipulation token. USDT sucks.

I read most of the posts under the thread. I started to worry about my trading activity because I use USDT coin very frequently after I need some rest by selling my bitcoin and ethers. Then it's gonna be so complicated if tether causes a chaos on Exchange platforms.

If people will lose trust for USDT for some reason, then the price of BTC will skyrocket. Everyone will start to exchange USDT for BTC and it in turn will drive real price up. (people will pay more and more USDT per BTC just to get rid of it)

Meantime one can try and use bitUSD (only on bitshares platform for now) or SBD (this one is not bad but the problem is it is listed on exchange as SBD-BTC so you can't see USD value without calculating first)
I am mentioning them because there is real need for people to have some kind of USD pegged crypto, so it can be transferred fast between exchanges and maybe can point this out to some exchanges, so they will allow necessary changes.

Yeah, the price will skyrocket... against USDT. In terms of real money, it will drop massively. Remember what happened with MtGox? Same is happening with Bitfinex today, and Bitfinex practically owns Tether. I was thinking about using Nubits on Bittrex (price is more or less pegged to $) or NZDT on Cryptopia, but neither seems to be a safe and secure way of protecting one's assets when the whole market crashes. Bitshares platform has extremely thin orderbooks (at the moment). Anybody has other ideas?

Yes, for example Cryptopia has done a peg 1:1 against New Zealand Dollar, but we don't know if it isn't similar story to Bitfinex (small exchange, easy to keep a secret). There are exchanges all over the world, some of them let you exchange to real money, but it usually will be a local currency and you probably would need an account in local bank to withdraw the money. It may be a solution to protect your wealth (for a short term at least), but there is a problem with liquidity. If you would have wanted to exchange, say, 100 BTC into a local currency, you would end up buying it very expensive, then in order to exchange it back to BTC, you would be selling it very cheap.

As long as they do this withour problems, it's not our business to criticize their way of issuing those USDT thing.

They can manage it because they have real reserve money in their pocket, I mean the big exchanges like Bitfinex.

NZDT is not listed on coinmarketcap, presumbly it is not freely tradable?

pegging something to something that is worthless or inherently beyond your control, USD FIAT, is doomed to fail.

I can see why they are doing it to work around legacy banking....but to many variables....many of which are internal, like the urge to FRB..T!

(fractional reserve bank Tether).

If FRB T is no going on then .... ok lets face it ... it is.

There were news today about Tether and their role in losing about 30 million USTD. It's quite a big amount and they definitely have to explain what happened there. The Omni network is simply not secure enough, or Tether itself has messed thigs up. To be honest they might as well have gambled that 30 million and just try to back it up and cover their losses by saying they got hacked. It's really dodgy and the market needs more participants and other alternatives in order to not relly on only one provider. Tether has seen a lot of controversy and there is always something to say against the company, the fact that there are no alternatives out there is ridiculous, there is a huge market cap to fill that sector. More projects should get involved.

Very interesting thread but I'm surprised that their are not more threads about the current hack..

I came to bitcointalk today to get the news from the community about the USDT hack and their seem to be little to nothing, except the usual sig spam threads..

Their is this thread https://bitcointalk.org/index.php?topic=2436765.0;topicseen
But with a pathetic 10 total posts and no valuable information on the subject..

Where are the goods?

I saw the news today about the coin stealing event of Tether today. Then I found this thread. In a way, the opionion here is quite interesting and useful. I won't hold too many of Tether coins.

I think Tether was recently hacked due to sabotage, i don't think someone from outside Tether would be able to hack tether from outside because that will be very hard thing to do.  

No, it's not. You can only trade with it on Cryptopia.

This might be too much of a conspiracy theory, but I was thinking the same. Inside job, someone got paid to move those Tethers in order to create panic, 'coz someone else wanted to buy cheap BTC. A bit crazy, but makes sense, doesn't it?

So if they can blacklist the address where the funds was stolen and create their own hard fork, does that mean USDT is centralized? Is what happened opaque, or can anyone see the address that was blacklisted on a public ledger?

In other words is the security centralized?

I hypotheized that a government may be behind it to damage the crypto trade..

Who would want to just damage USDT?

Because the hacker would have to have known that his booty would soon be worthles and the end effect would only be to destroy tether..

IDKs

Any one having problems with transactions ? Because mine already pending for 2 hours.

I have read a reddit thread that discusses the impact of the 31MM Tether hack.
Seems the tether hacked will be useless but it was expected to have some impact on BTC price.
Turns out, BTC still went up.

Problem is the issue turned up that if the hacked Tether is backed by USD reserves then those reserves should have been lost.
Some redditors are pointing it out that there has been no proof that all Tether are backed by reserves thus could be classified same as fiat money.
With the company, just creating Tethers out of thin air and buying cryptos with it.

Now when they say Tether is hacked and several millions of USTD vanished somewhere, investors might really feel horrible about everything connected with this crypto. The question is — what’s next, after these events?

Paradise Papers Reveal Bitfinex’s Devasini and Potter Established Tether Already Back in 2014

https://news.bitcoin.com/paradise-papers-reveal-bitfinexs-devasini-and-potter-established-tether-already-back-in-2014/

Bitfinex’s Giancarlo Devasini and Philip Potter has been named in the Paradise Papers – an enormous data leak identifying over 120,000 companies and individuals who have employed the services of offshore service providers operating in ‘tax havens’. The leaked documents contain evidence that Giancarlo Devasini and Philip Potter established Tether in the British Virgin Islands already back in 2014.

The Paradise Papers Reveal That Appleby Assisted Philip Potter and Giancarlo Devasini Set up Tether in the British Virgin Islands in 2014
Paradise Papers Reveal Bitfinex's Giancarlo Devasini and Philip Potter Established Tether in 2014Bitfinex’s Giancarlo Devasini and Philip Potter have been identified in the recent Paradise Papers leak. Italian media outlet, Nuova Societa, describes the leak as revealing “specialized companies to carry capital in tax jurisdictions other than their country of origin.”

The leak saw the release of approximately 13.4 million files which were leaked to the German newspaper Suddeutsche Zeitung, before being forwarded to the International Consortium of Investigative Journalists (ICJC). The Paradise Papers comprises the second largest data leak in history, second only to the Panama Papers leak of 2016.

The leak details the documents of offshore service providers, Appleby and Asiaciti Trust, and the company registers of 19 tax havens. Among the companies named in the Paradise Papers are Facebook, Twitter, Apple, Disney, Uber, Nike, Walmart, and McDonald’s. The individuals identified in the leak include high ranking officials from Kenya, Liberia, Ukraine, Jordan, Nigeria, Lithuania, Greece, Brazil, Indonesia, Uganda, and Kazakhstan, Queen Elizabeth II, and Bono.

The operations of Tether, Bitfinex, and Mr. Devasini have come under increased scrutiny recently – owing to a significant proliferation in the number of Tether in supply since Bitfinex lost its associated banking earlier this year. In response to accusations that Bitfinex has inflated the supply of Tether in order to remain solvent, the company recently posted a tweet stating “Bitfinex is solvent and both fiat and crypto withdrawals are functioning as normal,” and that “a formal announcement is forthcoming.” The following day, Tether announced that approximately $31 million USDT had been “removed from the Tether Treasury wallet on November 19. 2017,” resulting in a hard fork to isolate the hacked funds.

Mr. Potter and Mr. Devasini Have Long Sought to Distance Tether and Bitfinex, Stating That Such Are Separate Entities
The Paradise Papers evidence that Mr. Potter is Tether’s director, and states that Mr. Devasini is a shareholder in the company, in addition to illustrating that the pair established Tether in the British Virgin Islands in 2014. A recently leaked document, however, indicates that Mr. Davasini and Tether chief executive officer, Ludovicus Jan Van Der Velde, are the current directors of the Tether. Mr. Van Der Velde is also the chief executive officer of Bitfinex.

Philip Potter, Bitfinex’s chief strategy officer, worked for Morgan Stanley in the 1990s, but was fired from the company after Mr. Potter was featured in a 1997 New York Times article that portrayed him as shallow and materialistic. Little is known of Mr. Devasini’s background, other than that he founded a computer hardware company during the 1990’s. Mr. Devasini was fined 100 million Italian lira in 1996 for selling pirated copies of Microsoft software.

banking in the ends always turns out to be a scam

regards

hey guys, does exist any alternative to tether if somebody wants to secure his crypto holdings in fiat or fiat-alike. I mean, to avoid exchange rate risk. I see a lot fud on tether. Is there any other alt pegged to USD but more decentralized?

Tether was always a scam,the team behind it reaches their goal to get a lot of investment and lastly when the time is right they will announce that tether was hacked genius moves from greedy people.

we still know basically nothing about bitfinex's previous mega hack and that was over a year ago.

what makes you think they're gonna tell us anything about this hack? especially when it comes with the added risk of revealing things they don't want known about tether.

I don't theink that they would tell us anything at all..

But their are some extremely skilled people around here that get off on figuring things like this out..

Someone just pointed me out to a clause in their Terms and COnditions, saying that it should not be used for money laundering. I am unsure what all does that cover. But if they have the ability to pull out coins from someone's wallet who does that, then it would be the most stupid investment ever.

I'm a little bit surprised as of now there is nothing big coming out of the whole situation?
I was expecting a little bit of negative impact on BTC price  ???

Not me really..
This usdt hack kind of showcases the strength of bitcoin..

Can anyone tell me why tether doesn't go beyond $1 even though it's below it now. I found it strange.

The price of Tether is supposed to always be $1. That's the whole point of Tether. It is a lot easier to keep it from going higher than $1 than it is to keep it from going lower.


That's what you're worried about? Everybody has AML language. What should bother you is this:


And this:


And this:


So if Tether says one thing on its home page, and another in its TOS, the TOS win! So much for that guarantee that Tethers are always backed 1:1 with money in the bank.

There's a lot of FUD around tether right now, but what makes all these remarks distinct from other cryptos that are only used as money?

The difference is that Tether isn't a decentralized cryptocurrency. Its ledger is centrally administered, and the entire idea of backing crypto with USD is centralized. That's why they were able to unilaterally hard fork immediately after the recent hack. Tether.to is 100% in control of the ledger, and users have to trust them.

I gotta say, this "media offensive" that Bitfinex/Tether apparently went on is pretty disappointing. They didn't say anything new, just repeated "audit coming soon." ::)

The last audit they have is dated 15 Sep 2017 and audit was only for "internal use".

Some consulting firm said: "We are a consulting firm, Tether management team asked us to have a look at their accounts, we've looked at the bank account and found ~420 M USD, which we report to the management"

The market cap is now well over a billion: $1,228,723,761

Since they have announced that they cannot serve US customers, where is all the USD coming from that is being deposited and allowing them to issue more tether?

Are people depositing USD from other countries? Any non-US customers having trouble with withdrawals into fiat?

Can someone please explain me, how it can be that the amount of circulating theter is increasing since january pretty strong ?
Does this mean they can print money ? Why is there no inflation ?

See my post right above yours. They can issue as much tether as they want, but they claim that they only do it 1:1 for each USD deposited in their bank account. But the question is where are these USD coming from, since they say they cannot service US customers.

Can someone explain, how is the Tether foundation supposed to make any money if Tether was really fully backed by USD? I mean, what would the motivation of the founders be knowing the price won't go up at all?

Transaction fees from USDT + exchange fees for USD to USDT and USDT to USD.

Hey if all the governments of the world can create fiat out of thin air, then why not BitFinex? As long as people believe 1 Tether = $1 USD, it can moderately inflate till infinity. I mean it still have a long way to go to match the amount of fiat the world government is pumping out every day.

Tether prices aren't all that encouraging at the moment and the issues with exchanges too is not helping, but I think in a couple of months, after its proven that its not a scam, I see the coin pumping up.
Pump to the moon

The whole idea of tether is to be pegged to USD. Any increase or pump would actually be counterproductive.

Agreed. During the latest downturn, I mortgaged my house and maxed out my credit card to buy tether. It's definitely going to go up this week.

Ok, there's something I don't get,

Please, ELI5 here. Tether's utility within the crypto community is to provide safe-parking for your gains when the market is going red, right? Why does it matter whether or not you can cash out USDT if you could cash out changing to BTC and going to any fiat exchange?

I can see why Tether should have a 1:1 back up in some bank, ethically... But for market purposes, all they need to do is keep their value pegged to relative $USD within exchanges.

Idk, is there something I'm missing? Can't see what all the fuzz is about besides negative media attention...

thether is the real bitcoin i hodl

So where can I transfer my dollar? ;D

Because they cannot control the "peg". The price is based on what people are willing to pay for it. That's why the value is not always $1 USD, it fluctuates up and down. If people lose confidence because they cannot exchange USDT for USD (because maybe they don't have the reserves), then the price of USDT will plummet.

This project is quite interesting from the point of view of listening. I would certainly not mind going and really seeing how much money they have, because they claim that they have so many funds. And if they began to discuss this amount of money, the number of bitcoins in their account, then I would call this project SCAM

Tether is not the real Bitcoin, that's like calling Bitcoin Cash or Bitcoin Gold the real Bitcoin. Crazy.

Great,

So under this logic, all they really need is a reasonable fractional reserve and that would make them as "legitimate" as any bank. I guess my position now is that I'd appreciate clarity from them on these grounds. I don't see that it would hurt them to disclose this information, instead of claiming to actually own all that money in fiat, which I doubt.

Thanks for answering.

Just want to share this in case someone missed it:

http://www.tetherreport.com/

It argues that Tether printing is what is driving the BTC market through fake demand. Seems pretty sound to me.

Please debate, I want it to be wrong.

There is a LOT of evidence being gathered (sadly only by individuals, though to me they are more of experts and reliable analysts than the ones people usually see as more reputable) to show that a lot of ways exist that look suspiciously like manipulation, with Tether right in the center of these claims.

Of course, the printing itself of Tether does not necessarily mean this is the only thing driving prices but when you have exchanges behind Tether, you must be able to be skeptical of how it is used as a tool to move prices easily.

Not so good news, Tether Confirms Its Relationship With Auditor Has 'Dissolved'.
Tether, the issuer of the dollar-pegged cryptocurrency USDT, said its relationship with audit firm Friedman LLP has ended.

https://www.coindesk.com/tether-confirms-relationship-auditor-dissolved/

"We confirm that the relationship with Friedman is dissolved.  Given the excruciatingly detailed procedures Friedman was undertaking for the relatively simple balance sheet of Tether, it became clear that an audit would be unattainable in a reasonable time frame. As Tether is the first company in the space to undergo this process and pursue this level of transparency, there is no precedent set to guide the process nor any benchmark against which to measure its success."

i know nothing about auditing but it don't sound too hard to me. look up some bank accounts and do some sums.

i wonder who dumped who.

I apologized for the comment, but USDT since hacking the people stopped trusting them.

Interesting read for many people. After reading felt it like  we all r being looted by institutional players.

https://medium.com/@justindanneman/bitcoin-value-surges-past-11k-heres-why-it-s-happening-9dc7a08ba67a (https://medium.com/@justindanneman/bitcoin-value-surges-past-11k-heres-why-it-s-happening-9dc7a08ba67a)

There is no evidence that Teather (USDT) is a scam or not a scam. And there will be no such evidence until people conduct an external audit of this project. Already a lot of people are trying to conduct this external audit. It's pretty simple. You just need to transfer your Teather (USDT) back to the crypto currency. And then it will be clear if they have enough tokens for repurchase. That's all.

You can't exchange USDT for USD. That means it is a scam.

Another article on it:
https://tonyarcieri.com/the-tether-conundrum

This is really damaging. Shows that $450 million in new tether was issued during the big price decline in bitcoin in mid-January. Who is going to be depositing that amount of money DURING a big decline? And how is it that the market cap of tether has only increased since inception? When people are cashing out USDT for USD, the market cap has to go down. Are we to believe that this has never occurred?

It's pretty clear that tether is propping up the cryptocurrency market. The question is, how much of a decline in bitcoin will there be? The total daily trading volume of tether is 2.3 billion (almost its entire market cap). The daily volume in bitcoin is only $7 billion. So we could see a precipitous drop in bitcoin prices. Perhaps now is a good time to sell. 

Report: CFTC Sends Subpoenas to Bitfinex, Tether

https://www.coindesk.com/report-cftc-sends-subpoenas-bitfinex-tether/
https://www.bloomberg.com/news/videos/2018-01-30/crypto-exchange-bitfinex-tether-said-subpoenaed-video

https://www.bloomberg.com/news/articles/2018-01-30/crypto-exchange-bitfinex-tether-said-to-get-subpoenaed-by-cftc

My take is that this is interesting, may have a point, but doesn't explain a couple of things.  Before i get to that, the point you make in bold does not necessarily follow, as people could be selling BTC to USDT and not selling USDT.  Isn't that the purpose of it?  So i would expect an increase demand for USDT in a falling market.

But the main thing it misses is the entire rest of the market.  Not only the massive volumes into and out of every other coin, but most significantly, the massive trade manipulation going on in the Korean exchanges.  As they were in BTC/KRW pairs and often a multiple of BTC/USD trades, I think they have a major impact on price that this Tether printing theory ignores.

I can not understand why against the backdrop of so many really negative news, quotes of this currency do not fall down?
https://coinmarketcap.com/currencies/tether/

Very interesting events occur around Tether and Bitfinex and for a long time already. As far as I know, the organizers of these companies are connected Tether has long been accused of printing USDT unjustifiably, some checks are being carried out which reveal this, but this does not affect the company or the USDT exchange rate. All this is very strange

Some seriously bad news, not only for Tether but Bitfinex both have received subpoenas from US regulators, the witting is on the wall.

Major cryptocurrency exchange Bitfinex and token issuer Tether have received subpoenas from US regulators as questions continue to arise about the latter’s ‘true’ value.
https://cointelegraph.com/news/bitfinex-tether-get-subpoenas-from-us-regulators

People don't read into things that are quoted in the OP. They accept terms and go buy. What is happening now is real nasty. The question rises if Tether actually does hold the money in a safe box somewhere.

http://i.fok.nl/s/emo.gif very http://i.fok.nl/s/emo.gif unlikely http://i.fok.nl/s/emo.gif ...

Why whould they? Better just buy BTC and ETH as soon as the dollars arrive, because by reinvesting in other crypto currency the Tether company can generate revenue/income. Their token price is after all static / linked to the USD. How else would they generate an income if they trade USD for USDT at a 1:1 ratio and don't invest that dollar?

And then the price of ETH and BTC drops, just at the moment there's inspection at the door. Greed got a hold of so many.

Btw I'm in progress of making the tRUBL. Presale minimum buy is 1500000 RUB. I will send you the tokens after payment is confirmed on a 1:1 ratio. Your rubles are safe with me.

Interestingly, there are now million-dollar buy walls on Kraken at 0.986, 0.985, 0.975, 0.97, and 0.965. Normally the buy side on Kraken is very thin. A few days ago, to sell $250K on Kraken you would have had to sell the last one at $0.50. Kraken is the only exchange I know of where it is possible to exchange Tethers directly for USD. Someone is defending Tether.

$5 million isn't much compared to Tether's market cap but this might have something to do with why the Tether price is still levitating within a cent or so of par.

The subpoena mentioned was all the way back in December, and it was only written about yesterday.

If Tether falls, wouldn't Bitcoin skyrocket? Considering that Tether is widely used on exchanges as a buying tool. Would people not go back to using the BTC markets for buying altcoins again?

Might have to do with the amount of trust people have in the blockchain technology in general.

I just woke up and actually hoped that CND went up a ct or more so that I could loose some.. but might be a good moment to buy in with USD/EUR as well now.

edit: seems people did BTC > USD(T) on a massive scale, USDT is still keeping up at the same rate as before

The problem for tether is lack of transparency. We all know Tether is completely centralized, and Bitfinex said it's backed by the real USD value but we didn't know how the way it's exactly works. I love to hear more about the scheme of it. But personally, I'm will stay away from Tether.

Is there any means for the public to track the amount of tokens made? What prevents Tether from printing 5000000000 for itself, and just using them by small amounts, as more investors come over time?

Seriously funny thread, the explanation, the downright sarcasm! Here's the warning people, 'don't get tethered'! In other words, Tether’s service doesn’t promise to pay you anything in exchange for your Tethers. The company suggests that it will pay you money for your Tethers – but it doesn’t promise anything.

Tether was not fortunate enough to be investigated by the US government, which would have hurt Tether and its investors. I think if other commercial sites were investigated they would also suffer the same fate as Tether because proving crypto trading activities is very complex. Hopefully everything will be fine with Tether and the investors on it.

Well, it seems that these prophecies had some base...
I'm not so competent to evaluate the rumors about tether scam, but - if confirmed - the situation is really scaring, because it will affect the global crypto market.

It is crazy that nobody yet could audit the existence of real dollars behind Tether and all we have are just the claims that those dollars exist.

Ah, this is actually an interesting aspect of the "tether scam": take all the bad rumors that you heard about tether and try to apply them at dollars or euros...  the result is very funny :-)

The biggest problem about tether is that Tether is owned by Bitfinex, and Owner refuse to acknowledge this and tried to hide it before!!
I am suspecting that Bitfinex needed money to run due to a huge loss on its previous hacker attack. Maybe they lied and there is actually more than 30% of bitcoin is being stolen, but they could not risk and say the full amount, because this might lead to more problem where consumer losing trust to Bitfinex. So what I believe is that Bitfinex is using tether to finance its situation, and this working scheme continuously print free money and scam people.

Tether should sail through. It may come in a very bad shape though. You don't just claim you're backed with USD and not expect the US to have a look.

True, but if Tether aren't allowed to access that funds it doesn't matter how many dollars are in there. It's unclear on that matter.

Going by your post, the most guilty party moreso than bitfinex or Tether is in fact the US treasury and centralized Reserve banks everywhere, since they institutionalize the rule that sub-banks only need to have 20% of their "IOUs" redeemable with the other 80% allowing to be made up out of complete nothingness. That is, in all logic and obviousness, outright fraud. Why do you choose to direct your ire to Tether when it's a much lesser scam?

tether and bitfinex is going to go down in flames and bitcoin will go back under 1k. Its the same story as with mt gox. This will not be happy ending its going to ruin the price of cryptos. Using fraudulent tether to pump up bitcoin is going to cause fincen sar to be involved and pretty much gg to tether.

It's risky to invest like most of the coins in the first pages in CMC but not a scam.

The last audit was in September 2017 and did reveal that literally every dollar was accounted for. This is of course great news compared to the thought that the money might not be there, but the question is if that amount can also decrease, i.e. can cash be withdrawn?

And who is the almighty benefactor who pays for all this? Because Tether doesn't receive income by storing dollars.

Or they get like a 1-3% interest? Seems unreasonable as the agreement that the amount of USD remains linked to the amount of USDT should apply to both parties.

Aren't the wallets of Bitfinex traceable?

Don't have an account there so never checked, but I've seen several wallets pass lately that clearly had the description of Bitfinex, in the blockchain itself (not in the comments). Huge wallets.

Why do the people who form Tether work under the company name of Thether if they can not earn an income by the 1:1 trade of USD/USDT. What benefit lies there, besides schemes that move into the grey area of the law with that same product? What other asset does Tether have besides USDT/USD? If USDT/USD are fixed really at 1:1, maybe then all these Tether people are volunteers. Maybe we've even met one of them while he or she was working overhours at McDonalds, to pay for the rent and electricity at hobby club Tether. That has to be it.

I don't think the idea started out as a scam, the people behind Tether understand the space, but i think things started going wrong for the team when the exchange was hacked and there was huge presssure on the team to refund customers fund, so they started print Tether out of thin air just like FED do

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

Tethers get Granted and Revoked at that address.

This is an important moment for the crypto world. Tether must prove without a doubt that it has $1USD per tether token.

This will restore confidence back to the crypto market. A token as pervasive as Tether cannot be caught in a scam, else it

will take a long time for the crypto market to recover..

Right now the markets are jittery due the series of bad news. There is a need for some sliver of good news so that the market can stabilized.

The investigation by the U.S. Commodity Futures Trading Commission on Tether must come out with Tether proven to have the reserves as it

has claimed. This is something sorely needed by the community at this moment.

It's quite simple, if they are printing money out of this air, they are doing EXACTLY the same thing as the centralized players you described.


You can apply it to dollars and euros. There are plenty of companies that have audits published on their euro or dollar deposits - but now Tether is refusing to do so.

check this article... explains a little bit the Tether case.. it's a good article.

https://noticiasbitcoin.io/2018/01/29/tether-continua-emitiendo-moneda/

Listing on IQant (February 04 10:00 UTC)
https://coindar.org/en/event/tether-usdt-listing-on-iqant-2953

If the rumors will be demonstrated, it will be another shot to cryptocurrency credibility.
However, when the system you manage - I'm not talking only about Tehter - starts to move hundreds of millions of dollars, and you don't have any kind of rules to respect or authority controlling you... well, I think that the temptation to cross the borders - in any sense - becomes very high.

English language site please!!!!!

What really raises my eyebrows is how, during a time when Tether isn't accepting any new customers, nor is it allowing existing customers to deposit new funds was Tether able to issue $600M new USDT on Saturday, Jan 27?

It's a very difficult moment for cryptoworld, because the attacks to its credibility come from everywhere, and banks and governments put all kind of ban. Tether is just one aspect of these attacks.
But I think this is very positive, in the middle term: it means that traditional centers of power have understood how dangerous bitcoin is for them, and how big will be the political and economic revolution started by bitcoin.
They can make this revolution difficult, but they can't win.

I'm sure that the news that Tether is  scam has appeared in order to reduce the price of bitcoin. Whales want to buy a cheap bitcoin and therefore came up with this negative news.

Bit humb offers to back Tether' s valuation no matter what happens to tether itself.

http://m.etoday.co.kr/view.php?idxno=1592309

Kind of interesting to see this. Tether have somehow miraculously forced everyone else to take its backing on. This is a very bitfinexy move.

It has been revealed that they have an account with ING:
https://cryptovest.com/news/ing-confirms-bitfinex-banking-account/

In addition there was a report a few days ago that speculated that they have a bank account in Puerto Rico.

This should alleviate some concerns, but there is still the questionable dramatic increase in circulation of tethers around times of bitcoin price declines:
http://www.tetherreport.com/

Since they are making so much in transaction fees, I wonder if this is legitimate, but if bitfinex is created USDT from the USD profits they are making, and then using their USDT to prop up the market?

Not likely!!!

Often, when a cryptocurrency tanks, holders of a rival coin will tease them with "SFYL" - sorry for your loss.
But the entire industry needs to keep an eye on Tether's USDT token, because if something were to happen to it, the result could be everyone's loss.
That's because the coin, also known as tether, has become a pivotal source of liquidity for the crypto markets.
https://www.coindesk.com/big-fail-tether-might-still-cryptos-ticking-time-bomb/

Tether is working hard to disrupt the inherited financial system through a more modern approach to money. It will be the first platform to ease money transfer on Blockchain. Tether has given its users the ability to transfer value over Blockchain without the inherent volatility and complexity associated with associated digital currency.

They launched and released the US dollar and the euro as Ethereum-based Tether, compatible with the ERC20 standard with the Omni Layer Protocol.
It allows digital USD and EUR to be transmitted via the Ethereum network.
It allows users to transact and exchange securities through the Ethereum network.

The ERC20 will have a fast exchange of data and finance ie a lot and a lot of net transaction fees compared to Tether on Omni.

 Tether is the first Company in the space to undergo this Process and pursue this level of Transparency, Tether really made me confused compared to other Coins and I Didn't really expect it to be Considerated as a scam. Everything will go down like hell and There will not be Enough time to convert the Crypto assets into real Fiat.Tether Has Seen a lot of Controversy and there is always Something to say against the Company, The fact that there are no alternatives out there is Ridiculous, , iam will stay Away from tether so I love this.

Tether has just created $ 300,000,000 USDT. Let's see what it would be like. Most likely after this, we can expect the growth of bitcoin.

Sauce?

Tether appears to be back at it printing yuge batches of USDT, this time around it is 300,000,000 USDT in one go.
Source: https://omniexplorer.info/tx/f3efac4b6203248fc06e2788b61e732319a6e596768f5240680f944780ff84f4

If Bitfinex starts pumping BTC then we know where this is going. :D

Everytime new Tethers are printed (I wish I could know when this happens), it seems that the Bitcoin price is going down.
It has happened every-time recently, so all the rumors that BTC is kept artificially up bu the "created out of thin air Tethers" might actually be true :(

There seems to be alot of people that just don't understand what tether really is, I can't believe there are Morons that keep chanting wait till the USDT pump!

This really is good reading for anyone interested in Tether/USDT.

https://www.pastemagazine.com/articles/2018/01/a-primer-on-the-bitfinex-and-tether-subpoenas-that.html

http://www.tetherreport.com/

The enormous false volume that moves around in circles each day in day out, the large proportion of fake coins/ico's, and Tether that is just still up and running...

as if the blockchain and crypto market are being used as some sort of testing ground.

It's a bit odd.

Since people cannot cash out USDT to USD, every USDT that is bought with USD represents $1 that will never leave the crypto market.

So when buying USDT with USD, no real value is added to the cryptomarket, and yet when USDT would "cease to exist" 2.5 billion USD will be gone from the crypto market. How? Because of the deception in how value is being defined and calculated. If something cannot be traded for $1, then why would it be worth $1?

Especially the fact that Tether has been allowed to come into play is remarkable, because now we have:

- An ongoing bullish trend / increase in value
- "Experts" claiming crypto is secure and that the future will be great ("we're all becoming rich")
- The economy is slowing down / not picking up the right pace
- Increased influx of USD to pump the market (through USDT)
- Increased access to the crypto market for the public (through USDT, and crypto exchanges poppin' up like mushrooms)

Now let's take a look at the US housing bubble

- An ongoing bullish trend / increase in value
- "Experts" claiming that house prices are booming and real estate is good business ("we're all becoming rich")
- The economy is slowing down / not picking up the right pace
- Increased influx of USD to pump the market (through increased interest rates)
- Increased access to the market for the public (through subprime mortgages and loans/credit without collateral)

And here's the US derivatives bubble

- An ongoing bullish trend / increase in value
- "Experts" claiming that derivative are the next best thing and the market is safe ("we're all becoming rich")
- The economy is slowing down / not picking up the right pace
- Increased influx of USD to pump the market (too big to fail bailout)
- Increased access to the market for the public (loosening up regulations that allowed all kinds of derivatives, and the introduction of smartphone/browser stock trading applications)

Zuck knows why.

I think credit should be given to whom it is due, what Tether did for the space is not small, though the team has to clear up the air about some questions being ask but this is far from scam. I don't know if people observe that since the FUD around Tether started the price of BTC has suffered great dip

Can you specify then what Tether did for the space? I'm not quiet sure (yet).

Shit, crap board timed out and I'm not retyping that whole paragraph that got lost.

Abridged: The onus is on them prove they are not a scam, anyone that just has faith in some cabal fake 100% created token is ignorant as well as moronic.

One might imagine the devastation of the effect that Tether can possibly bring by just taking a closer look at the BTC trading graphics/charts:

https://www.coingecko.com/en/coins/bitcoin/trading_exchanges#panel

33.3% of the trade will be the mere minimum that will be affected, and does yet not take into account the USD and Bitfinex (which are both tied to USDT in some sort) and the subsequent decline of as well Ethereum:

https://www.coingecko.com/en/coins/ethereum/trading_exchanges#panel

Ethereum will be crippled if USDT fails, because not only is USDT entwined in 24.9% of all Ethereum trades, the effect is complementary to USDT affecting the underlying BTC price as well. ETH/BTC will drastically alter  when a run from tokens>eth>btc>fiat starts. Most ERC20 tokens might lose up most if not all their current value. Actually this drain of value from ERC20 tokens has been going on for some time already, very slowly, and with a subtle price pump now and then for the more "popular" tokens, to keep people believing in those ridiculous projects.

If you are currently investing in crypto and the only way to cash out is through Bitfinex (USD/USDT), it might be wise to reconsider the situation you are in, again. That exchange is the first one where things will start to fall apart if people make a run for their money. Remember how in real life even a small and seemingly insignificant bank could topple entire societies and economies worldwide some years ago? And remember that in crypto there are no rules!

These people that tell others to have good faith and that things are 100% well-organized, without any motivation to pursuit a more adequate answer, they are the same people that thrive in the absence of rules as always, namely idiots (the ones unintentional bringing harm to others) and criminals/mafia (the ones intentionally not caring for others being harmed).

Cobinhood Delists Six Tokens Susceptible to Pump and Dump, Limits Tether Pairs.
As some cryptocurrency exchanges are adding new altcoins, tokens and forks all the time, cashing in on massive listing fees from promoters, the need arises to trim the fat ever so often. Now Cobinhood is removing a few, offering a glimpse on how trading venues decide which tokens to cull.

Full article, source: https://news.bitcoin.com/cobinhood-delists-six-tokens-susceptible-to-pump-and-dump-limits-tether-pairs/

Tether price is tied to USD, that is the point of Tether. So no, it's not going nowhere, surely not to the moon. The idea of Tether is to face the volatility of crypto markets...

I see Tether as a scam.
I do not believe their bank statments and so on, devs just started to print it and get cash :D
It is strictly my opinion, I do not say that it is true.

it seems to me now is the time to invest

What are you talking about? Now is time to get all your money from usd and tether to cryptocurrencyes... Do not buy tether now?? I mean you won't get any profit from it, except if you buy low sell high other cryptocurrencyes with it...

But rather than tether you should get your account on bitstamp and there you have real dollars, no tether...

I always felt bitter when people started talking about how tether is useful. I wish to believe it and use it against bear markets but sadly, it was very weird scheme all from the start. Its better not to use it.

yes it is sure to go up veeryone buy naw before the pump soon.

When, you think about 2008 and years similar to that one when the ''financial crisis'' was the man of the year and when you think where shit went wrong? Things, like we have in crypto called Tether, cross on my mind. Is it backed up by a dollar or not. If it is, what is the security for that? Who can guarantee that Trump won't put a dollar to sleep with this economic and taxation war with China?

https://cointelegraph.com/news/bitmex-tether-possibly-has-enough-cash-reserves-could-still-be-shut-down

https://medium.com/@bitfinexed/the-audio-recordings-bitfinex-doesnt-want-you-to-hear-44d677cf1094

I don't know how it would be even possible to be alive in the long run.
I'm avoiding this one.

Tether USDT is very useful to me especially on holding or freezing my Crypto Assets.
when the Crypto Market is surging then I choose to hold my altcoins, some coins I sell them off and keep them on USDT.
when the Crypto Market drops then my assets will not be affected because USDT Tether is freezing my assets then I will use it to buy more of my favorite altcoins.
USDT will be my Crypto stash and very useful for day trading.

I usually heard from members in this forum and even my fellow telegram channel members that we don't have to trust USDT because they're not actually backed by USD but I still use it often times and never faced any issues until today.
USDT helped me preserving my Crypto Assets using USDT and I even made them grow because USDT is fixed asset, whether the crypto market drops or pumps.

I really don't believe USDT Tether is a scam because it's use had saved thousands of Crypto investors from losing their Crypto Assets and investments.
I myself had used once USDT Tether in order to keep safe and save my crypto assets from dropping it's market value especially this year that Bitcoin dropped drastically and every altcoin's are dropping together.

You have to give it to the dev for thinking the concept through.

Like the original message of the thread implies: even if the terms sound ridiculous, it cant be labelled a scam if all the terms are stated clearly and abided by

I think this is a very reliable token. And it is very useful because at sharp fluctuations of the market traders are looking for stability. This token is very stable.

I am really confused and same time leave with too much question about tether. It's like the only way you could get your fiat back is buying btc again and trade it to btc agains't your local fiat. At first I was oddly confused, what's the use of tether at all if you can't redeem it back. The only use of it from my knowledge is to trade against other crypto. That's all.

It can be used as a hedge against bTC price falling without having to use a fiat portal, that and it can be created out of thin air and used to pump. I think those are it's 2 main uses. :)

The difference between USDT and USD are very huge but the fact that when USDT was created is was to have an equivalent value to the US dollars, so we know that the US dollars doesn't have the same value and we can see the historical graph of the value of US dollars and any other nation currency but the good thing is that USDT is helping people to trade more easily and more confidently with they own money but avoiding any potential loss when the price of Cryptocurrencies drops a lot. 2 Billion is a lot and I think they have to prove it?

I did not propose as a comparison to BTC, but rather as % of total crypto market cap. BTC has been decreasing, relatively, now only 40% of total. I only posted the numbers so that in the future my calculations can be verified.

Are you serious??? Tether can become worthless at any second, maybe you need to do a little research before spouting off nonsense.

Is it really the case that USDT cannot be converted to USD? In that case it is established as a scam, regardless of what the other facts may be and whether they are all "backed up". From their website, it was initially described on how to convert USDT to USD. Then there were some issues with their banking relationships in certain countries, and customers from those countries were told that they would not be able to exchange USDT to USD for the time being. But my understanding was that it was still possible for persons in certain countries.

Just noticed they created another 130 million. Lol this shit keeps getting funnier the closer it gets to D-day. :)

Whats going to be even funnier is when all the fools are crying they had no idea it was coming. :)

https://www.omniexplorer.info/address/1NTMakcgVwQpMdGxRQnFKyb3G1FAJysSfz

Can someone explain, how is the Tether foundation supposed to make any money if Tether was really fully backed by USD? I mean, what would the motivation of the founders be knowing the price won't go up at all?

The daily volume in bitcoin is only $7 billion. So we could see a precipitous drop in bitcoin prices. Perhaps now is a good time to sell.

But the question is, how long to stay out? Reportedly Tether is moving to a jurisdiction where they will be under even less oversight. They will try to keep things under the rug for as long as possible. It's already been more than 6 months since the subpoena was submitted, it could be another 6 months before anything happens.

I don't have any experience with tether but if they created 130m by that day then they created $310m more in the past few days.
From the coinmarketcap charts there is a high directly increase of market cap in the past 30 days then today there is a huge drop, does this mean they are creating new coins out of nothing?
From the reply you made I said that USDT is being considered like crypto USD but that doesn't mean it is 100% safe.

Tether is supposed to be a placeholder for Backed USD, IOW it is supposed to just be a means to trade v/s USD without using portals but in order for that to be true it must be 100% backed and they refuse to be audeted and fired the last place that was supposed to audit them. There is 400 million that was seized in a bank in Poland and it is widely believed to be from Tether which Tether/Bitfinex deny.

Until they open their books and prove they can back all these tokens they create and remove the disclaimer that they are not responsible for redeeming tether tokens (Thats right they have that on their site!!!) then they should be considered as running a fractional reserve on a illiquid asset. If all those tokens start getting sold (think of a bank run) then tether will crash and burn and the Bitfinex crew will cut and run with the fractional reserve, you can bet your last dollar on that.

I'm actually worried that almost any day now the crypto Market will crash. Which exchanges actually use USD and not USDt?

The problem for tether is lack of transparency. We all know Tether is completely centralized, and Bitfinex said it's backed by the real USD value but we didn't know how the way it's exactly works. I love to hear more about the scheme of it. But personally, I'm will stay away from Tether.

WTF is this, bot?

Already a lot of people are trying to conduct this external audit. It's pretty simple. You just need to transfer your Teather (USDT) back to the crypto currency. And then it will be clear if they have enough tokens for repurchase.

No, the way to test it is to convert tether (USDT) to fiat (USD), but even if they give out a small amount of USD does not mean that they have all the reserves, but it would give an indication at least. I am surprised no one on here has commented whether it is possible to do it.

It still amazes me how people could indeed fall for tether and store their money there when the markets go down. Do they not realise it can be shut down instantly, leaving their investments by all means worthless? If you want to store your money, use litecoin, bitcoin, vechain, project you know are going to be around for the next 10 years at least... hell even gold is a billion times better than having a fake currency illegally backed to federal currency.

I myself had used once USDT Tether in order to keep safe and save my crypto assets from dropping it's market value especially this year that Bitcoin dropped drastically and every altcoin's are dropping together.

Well if there is any correlation there it is because tether has been creating coins out of thin air to pump BTC which helped cause the bubble and if you didn't know, bubbles are bad for monetary units. Stability is key so stop worry about what you can make and look at the big picture, tether is a scam that hurts all crypto.


So is there supposed to be a point in there somewhere?

I'm sure that the news that Tether is  scam has appeared in order to reduce the price of bitcoin. Whales want to buy a cheap bitcoin and therefore came up with this negative news.

Personally, I do not believe that USDT Tether can be a fraud. After all, working with him has already allowed thousands of investors to crypto keep their assets from possible loss.

When information begins to appear in the general information flow that Tether is a scam, I start to get nervous, since this is already a regular messenger of the bitcoin price drop.  :-\

I like USDT pairs to be honest because its easier for me to hold the value especially when market is down. I dont have to convert the BTC/ETH/LTC value manually for certain exchanges which is quite troublesome.

I really hope one day there will be USD pairs for exchanges but until then, my best bet is USDT.

You can't really expect them to offer all sorts of guarantees :-[

Everyone "likes" a USD pair but if it disappears overnight then what the fuck good is it? Right now your playing Russian roulette with it. And if you continue to use it don't cry here when they exit scam you.

Lol, they even made their own shitcoin btc fork.

http://blog.bitfinex.com/announcements/bitcoininterest-support/

What really raises my eyebrows is how, during a time when Tether isn't accepting any new customers, nor is it allowing existing customers to deposit new funds was Tether able to issue $600M new USDT on Saturday, Jan 27?

New competition for tether:
https://ethereumworldnews.com/circle-bitmain-usd-coin/

AFAIK, coinbase is a reputable company, plus it's going to be an ERC20 token. I imagine it would become available outside poloniex at some point. This could be the end of the road for tether.

Looks like it's time to short this shit, the beginning of the end is nigh. ERC20 token though, just ugly.

Shit is Kraken the only place to short tether?

Wonder how long till Bitfinex has a run on it's hands. :) exit scam in 3,2,1...

He himself several times used the system to protect his crypto assets from the decline in market value. It was especially important in the period when bitcoin prices fell this year.

Their problem is the lack of transparency. After all, this is a fully centralized project, supported by the US dollar rate.

Doe anyone else remember a few months ago when Bcash people were saying that Tether was a scam? Was there any legitimacy to that? I don't know much about that stuff but they were saying Tether was printing cryptocurrencies out of nowehre that they didnt even have or something. Basically like the USA government lol, except with crypto.

The tether isn’t backed by anything. Just like nubits lost 75percernt of its value the tether will fall even harder peercoin is the most undervalued crypto currency if you want too be out of bitcoin peercoin the place too be currently over 3000 peercoin too the bitcoin I expect the ratio too be 100 peercoin too the bitcoin some time in 2018

This is a company that issued an unusual crypto currency. Unlike Bitcoin, whose value is constantly fluctuating, the main property of Tether tokens is stability. The cost of the token can not deviate significantly from $ 1, since, according to Tether, each of these tokens is provided with a dollar in the company's account.

I would be shocked if there is 1dollar for every tether issued I don’t think there is 1penny for every tether issued and within the near future this will come too light

Do you know any exchange that converts USDT directly to fiat (USD, EUR, YEN, GBP)?
Personally I don't know any of such.
And that's weird, why some people try to investigate Tether USD supply, while this coin has nothing to do with USD directly?

I can save you some time, there isnt. It's a terrible idea, not to mention illegal and literally a ticking time bomb before the SEC shuts it down

ou can't really expect them to offer all sorts of guarantees

There is no way that there is enough fiat being issued for every tether that is pushed into the market. Which is why you cannot find any exchange that will convert your tether into fiat money. It is useless to the market and it might take a while for people to realize that what they are using is something that is non existent and if you have tether, get out now while you still can.

Already a lot of people are trying to conduct this external audit. It's pretty simple. You just need to transfer your Teather (USDT) back to the crypto currency. And then it will be clear if they have enough tokens for repurchase.

Already a lot of people are trying to conduct this external audit. It's pretty simple. You just need to transfer your Teather (USDT) back to the crypto currency. And then it will be clear if they have enough tokens for repurchase. :) :)

I myself had used once USDT Tether in order to keep safe and save my crypto assets from dropping it's market value especially this year that Bitcoin dropped drastically and every altcoin's are dropping together.

Unequivocally I think that the tether project today is also scam because this project can not pass the audit in any way, but eventually they found out that the bank is behind this project, therefore they do not want to pass the audit.

And you are proving why a n00b accounts need to be locked in a n00b area, its dumb ass posts like this that make good n00b accounts get ignored.



Will the Bot please raise you hand.



And another plagiarizing bot.

I think this is very positive, in the middle term: it means that traditional centers of power have understood how dangerous bitcoin is for them, and how big will be the political and economic revolution started by bitcoin.

Yeah, as far as I know, Tether is 100% backed. Every Tether is always backed 1-to-1, by traditional currency held in our reserves.
So 1 USD₮ is always equivalent to 1 USD. So its impossible to pump Tether.

Tether is not backed by US dollars it even says on website you can’t redeem for u s dollars over 2 billion in tethers have been issued the wise move if you want too be out of bitcoin lite coin etc buy peercoin its extremely undervalued and is energy efficient there over 3000peercoins too the bitcoin and  in Jan of 2014it was 100 peercoin too the bitcoin which is more representive of fair value

Lol trying to shill your deserted P&D coin in a scam warning thread is not the way to get buyers so you can dump.

Just keep printing tethers backed by nothing but as soon as people stop buying them there worthless

One anonymous blogger pointed out the correlation of Tether coin generation with price increases of mainstream cryptocurrencies like Bitcoin and Ethereum. According to Cointelegraph’s BTC and ETH price indices, the price of Bitcoin increased approximately by $120 and Ethereum by $10 within an hour of the issuing of the $250 million worth of new Tether tokens.

Published today in Cointelegraph: Tether Mints $250 Mln of New USDT Tokens, Rekindles Controversy (https://cointelegraph.com/news/tether-mints-250-mln-of-new-usdt-tokens-rekindles-controversy)

They've said the money is backed with real dollars though haven't they?

I think maybe they lied?

You're lucky because they have hidden surprise in it's “legal” section:

“Once you have Tethers, you can trade them, keep them, or use them to pay persons that will accept your Tethers. However, Tethers are not money and are not monetary instruments. They are also not stored value or currency. There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers.”

https://cointopper.com/guides/what-is-tether-usdt-and-how-it-can-help-you-save-yourself-during-crypto-bear-market

You have to give it to the dev for thinking the concept through.

Like the original message of the thread implies: even if the terms sound ridiculous, it cant be labelled a scam if all the terms are stated clearly and abided by

Yeah it's real bad. Just report them and they will get deleted.


Those terms were added long after launch.

I was shocked by the other information - Tether released over 250 million USTD tokens. The emission was made on May 18. I doubt very much that this currency is worth a dollar. Too strange for me. IMHO.

Hello Tether believers,

Our aim is to add value to the whole crypto community by giving the best user experience to analyse cryptocurrencies.

It would be really great help from your side if you can spend 60 seconds of your time and give us your valuable feedback for our two recent updates 1) Snapshot and 2) Colourful interface of Tether at: https://cointopper.com/coin/tether

Constructive criticisms are always welcome at CoinTopper (https://cointopper.com/).  Thank you!!

I wonder if the last crash was caused by tether rapidly losing credibility, or if whales are using that as an excuse to drop the price themselves

WHEN FAUCET? =) WEEEEE

Another $250 million in tether issued. I cannot believe that it is legit, typically people do not enter the crypto market when the price is falling so much.

I`m confident that Tether will pump BTC on Bitfinex. Another $250 million? Heh, another $1 billion soon... New to the moon soon? Like 2017 winter maybe? I think it`s real now

https://www.coindesk.com/tether-review-claims-crypto-asset-fully-backed-theres-catch/

Tether claiming that an audit is not possible but that a law firm to look at the bank's balances is the next best thing. "The crypto market is too new..." These are just excuses. There is no reason an audit cannot be done. If all that was verified was the banks balance on a particular date, it is very possible that the company's cash is mixed in? Which means that the company basically has no cash, everything is in the form of USDT?

It's also been announced that the chief strategy officer is leaving.

the most recent “audit” was provided by a law firm, with ties to the holdings of Tether through Noble bank, with ties to Mt. Gox class action lawsuit through Sunlot and are all connected to Brock Pierce, the founder of RealCoin, now known as Tether Limited. Furthermore, the audit wasn’t an actual audit, as the lawyers hired by Tether limited confirmed that this was not in fact, an actual financial audit. This just all seems very incestuous and crazy to me. https://whalereports.com/an-audit-untethered/

Tether is a good crypto since it is not volatile it is good place to hide your assets here because the value is same as a dollar. This could avoid large amount of tax if you convert those dollars into Tether.

imma make my own tether omni token and then lambos will fall from the blue skyzzz*=) weeee

tether and bitfinex is going to go down in flames and bitcoin will cross again underneath 1k. Its the same tale as with mt gox. this can no longer be happy ending its going to damage the rate of cryptos.

For me Tether seems like they are trying to create some kind of self-fulfilling prophecy, when they first issue USDT, bulk buy crypto and they dump it gradually conveting into real cash. If it turns out they don't really have that money, that is going to be a real shock for the whole market which will be extremely difficult to  fully recover from.

I see the price of tether is very stable, there is no significant increase and decrease, is this good? actually i do not know enough information about tehter

Not so good news, Tether Confirms Its Relationship With Auditor Has 'Dissolved'.
Tether, the issuer of the dollar-pegged cryptocurrency USDT, said its relationship with audit firm Friedman LLP has ended.

How good is it going to be when it's banking accounts get seized again? Doing an aufit, even a fake one, exposes it's banls.


they know not the fire they play with.

Great article. A key point from it, among many:



That seems to be the scheme, but what is the logic? Do they just want to get their hands on bitcoin by using fake tethers to buy it, thus pawning those tether on other ppl, so that when it eventually collapses Tether the company will own a lot of bitcoin and the public will own a lot of worthless tether?

Or is the idea that they expect BTC to go up, so that they will sell the BTC at a higher price than they bought it, then re-buy tether, assuming that the demand for USDT will keep increasing indefinitely?

1k? I have not seen such a low prediction in a long time. But I think it is advisable to stay out of crypto until either this blows up, or (a long time down the road), tether's importance in the market is supplanted by other alternatives.

Evidence of market manipulation on Kraken using Tether:
https://www.bloomberg.com/graphics/2018-tether-kraken-trades/

If Kraken is not involved (is there a relationship between bitfinex and kraken?), then it means that the manipulation is on both the buy and sell sides, presumably someone/a group is buying and selling to themselves.

Hahaha, this is bullshit


The truth is they only invest in rigged markets that they are in on the rigging.

It's just spontaneous, people will not behave like this because it's just the trick of a person who wants to be a swindler without any prospect!

Judging by everything that has already been said about tether, do not you trust USDT? And I generally planned to globally use this coin as the equivalent of a dollar in the crypto currency, so as not to worry about market fluctuations.

In my opinion(not in my only, anyway) tether is the greatest manipulation of Bitcoin's price in the whole crypto history. And big crypto exchanges are responsible for that. Also, they emmit sometimes a huge amount of tether, and I don't think that it is just because someone is trying to buy BTC for dollar

I have no clue what you mean? Everything that has been said about it should make me take the position of trust in a token that specifically states it will not be held liable to redeem at face value.

WTF are you talking about?

Not at all. The original idea of Tether was great, a cryptocurrency that is ‘backed’ by the dollar. Investors loved Tether as it was a safe haven for storing profits. I often used Tether to protect my gains from the markets correcting. To understand entirely why Tether (USDT) will cause the markets to crash let’s first look at what Tether is.

As far as i know,everythings that,you thinks have not absurds or not sure of promise and can make your investment as impossible is a scam,therefore my opinion of this kind of promising investment that they called Tether is a scam,eveb other saying that this is not,because its involve a money or  capital to invest and you cannot assure that those investment that you released is in good faith,because its only a promised and no assurance.

The problem for tether is lack of transparency. We all know Tether is completely centralized, and Bitfinex said it's backed by the real USD value but we didn't know how the way it's exactly works. I love to hear more about the scheme of it. But personally, I'm will stay away from Tether.

QFT


It is till it ain't. Lol
I can't wait to see your reaction then.


Tether
Hey Mom I made my first million!
Really?
Really!!!
Where is it?
On a anonymous exchange in a unsecured token.

The purpose of Tether is very different from most coins. If other actions are taken on it, and this value decreases outside its function, then it ceases. "Fraud" is so neglected on this forum that this is a lost value. Most "scammers" are not even close, but rather reactions to the knee or FUD. More trading and settlement options are better overall.

I'm sure that the news that Tether is  scam has appeared in order to reduce the price of bitcoin. Whales want to buy a cheap bitcoin and therefore came up with this negative news.

The problem for tether is lack of transparency. We all know Tether is completely centralized, and Bitfinex said it's backed by the real USD value but we didn't know how the way it's exactly works. I love to hear more about the scheme of it. But personally, I'm will stay away from Tether.

They dont audit even tho they promise to REGULARLY in their whitepaper. That immediately makes it a scam.

On top of this, they are likely not backing the tethers properly, counterfeiting, money laundering...

It’s foolish to assume they are not running a scam. It’s fairly obvious

So much conflicting information, hard to tell for sure, but just knowing that these markets are unregulated, plus how it's a bit like the wild west, there's bound to be problems.

I imagine that even if Tether is trying to run a legit business, there's also a good chance that they bend the rules. These markets are moving so fast, money coming in, moving to and from so many exchanges and countries, it would be a miracle if they were able to their reserves where they should.

But playing fast/loose with the rules doesn't automatically make them a scam, no more than those big banks that caused the 2008 financial crisis.

I have to disagree. At first people did not think that tether was a scam, a lot of people got behind the project which is evident in the success of the coin so far but then they started to digress, did not do things they said they would like auditing regularly. Which raised a massive red flag with investors. Then there is the problem that they cannot give a clear cut answer to how their coin works and if for every tether that is created there is a USD to back it up. Way too many redflags with this project.

I read somewhere theyre issuing a cryptocurency backed by the Euro, originated in Malta I believe. Could it be a similar scheme/scam?

the tether is one of the stable coins and now the coin of the tether still has not shown any down or rising price movements. so today's tether coins still have hope of being a safe asset.

All Nexo (https://nexo.io) clients can withdraw instant crypto-backed USD loans using Tether (USDT).

More information about the benefits of the service here: https://medium.com/nexo/accounts-on-the-waiting-list-87dc772830ea

I am personally very suspicious of such currency as Tether. If it turns out that this coin is not secured by anything, then it can hit the whole of the crypto-currency market very much.

I don't seem to understand what the token really entails but I have seen it trading on some major markets and I believe they must have done some research on it before they believe it.

Can't wait, don't forget to use a bank that can't be audited!

I am extremely befuddled and same time leave with an excess of question about tie. It resembles the main way you could recover your fiat is purchasing btc again and exchange it to btc agains't your nearby fiat. At first I was strangely confounded, what's the utilization of tie at all in the event that you can't reclaim it back. The main utilization of it from my insight is to exchange against other crypto. That's it in a nutshell.

There are two possibilities maybe he was just being cynical about the whole thing and it is just making fun of people or he does not know what he was talking about not realizing that tether is the only coin in the market that cannot pump in value, the coin could technically dump if at some point in the future it is demonstrated that the coin is a scam but it cannot pump.

Amusingly enough there were enough idiots that there was a dump and then a pump when the morons though it was a fake out. The dump was spurred by when the fiat portals got closed. I think it was about a total of 15 cents spread on the outside.

Its absolutely impossible that there is sufficient fiat being issued for each tie that is pushed into the market. Which is the reason you can't discover any trade that will change over your tie into fiat cash. It is pointless to the market and it may take a while for individuals to understand that what they are utilizing is something that is non existent and on the off chance that you have tie, get out now while despite everything you can.

There is no proof that Teather (USDT) is a trick or not a trick. Also, there will be no such confirmation until the point that individuals lead an outside review of this venture. As of now many individuals are attempting to direct this outer review. It's really straightforward. You simply need to exchange your Teather (USDT) back to the cryptographic money. And after that it will be clear on the off chance that they have enough tokens for repurchase. That's it in a nutshell.

On 3rd August, Zebpay, India’s leading cryptocurrency exchange tweeted the launch of its new coin TrueUSD [TUSD] (https://cointopper.com/coin/tether) which can now be deposited on the Zebpay wallet that is available for both iOS and Android users.

Just only to stay safe Zebpay did this and also claims TrueUSD [TUSD] will prove to be a valuable asset to unstable price jumps.

The key feature of the coin according to Zebpay, will be being able to send/withdraw TUSD from Zebpay to any wallet without any network transfer fees.

Currently, the TUSD withdrawals will be available on the platform from Monday, 6th August. An update will be provided to users when the trading of TUSD/BTC starts. Users can start trading in 20 cryptocurrencies and 35+ trading pairs on Zebpay exchange.

Through this launch, Zebpay is working at resolving trading limitations in India and serve as a new benchmark to cryptocurrency in India. Zebpay also claims that TUSD tokens are backed by various trust firms that it has partnered with.

Tether is a fine altcoin where you can make it as one of the short investment crypto. I think that the circulating supply in the market is also good. We can see the recent volume in the market is around $2,504,951,609. I don't think that it is a scam. This is a just new altcoin with its still cheap price at $0.999265.

Oh yeah, you're absolutely right. It's a bubble on a dollar bubble. I don't advise anyone to keep money in USDT. Because sooner or later it will burst.

Burst as in declared illegal and all holders must pay a fine and the managers are thrown in jail. Its not a light crime to use federal currency to back your own project, no matter how good the intention was

What they are offering is not reassuring enough. Bitfinex are involved and they have always had a serious lack of transparency. This is no different.

That kind of logic worked really well for Bitconnect owners.

Logic never seems to come into these equations, a fool and his money...

but why send them a receipt? it's important what you say when you ask for one dollar. if you just ask without return, there's no problem and people just give it to you. but if you initially promise something in return, but it does not give anything - that's cheating

What a nice read, OP. I totally agree with your point about Tether. I bet every one of us has Tether in their bag but hope not a single one naive enough to trust Tether or consider it as an investment.

if you ask about investment it is better if you invest your money in the Bank or in Gold.
Tether is altcoins and altcoins have values below Bitcoin, so it's better to invest in Bitcoin if you have FIAT.

damn i'd love to have an exchange thats also trading gold funds and giant real estate funds. I want to be able to cash out some profits without having to pay taxes on them

I need to oppose this idea. At first individuals did not surmise that tie was a trick, many individuals got behind the task which is clear in the accomplishment of the coin so far however then they began to diverge, did not do things they said they might want reviewing routinely. Which raised a huge warning with financial specialists. At that point there is the issue that they can't give an obvious response to how their coin functions and if for each tie that is made there is a USD to back it up. Far an excessive number of redflags with this undertaking.

Tether is now listed on LiveCoinStats at: https://www.livecoinstats.com/currencies/USDT/tether
Live prices from all markets and exchanges. Historical charts, news and more! www.livecoinstats.com (https://www.livecoinstats.com)

Tethers Have a Competitor: TrueUSD (TUSD) Promises Audited Fiat Backing

https://cryptovest.com/news/tethers-have-a-competitor-trueusd-tusd-promises-audited-fiat-backing/

Dont forget the Winklevoss twins who are close to releasing their own stablecoin on the Gemini Exchange. Its supposed to be regulated and backed by the dollar. Read more about it here:
https://techcrunch.com/2018/09/11/the-winklevoss-stablecoin-is-one-small-step-toward-crypto-acceptance/

Tether is not a scam but a stable coin that traders or anyone can use to edge Crypto and reduce the risk of losing hugely if the market suddenly swing, we have many stablecoin like Tether and Tether is fighting hard yo stay afloat among other stable coins.

Have had to use this to trade against Bitcoin and some altcoins on Binance, was basically using USDT but there was a rumor that there is an impending attack on the coins that scared me to start hedging in TUSD instead

It appears that Tether (https://coincodex.com/crypto/tether/) could be looking for new banking partners to hold the reserves backing its USDT stablecoin.

https://coincodex.com/article/2430/noble-bank-has-lost-bitfinex-and-tether-as-customers-according-to-report/

It has a real Tether team working nicely. But is it reliable? NEVER! It will shock us I am sure.

Tether can not be a scam because Tether is the best friend an investor can have

In relation to the Tether project, I have nothing wrong, because this project has really helped many traders to keep their deposit, since its price is not very volatile, but still it is a little felt on large volumes.

The problem for tether is lack of transparency. We all know Tether is completely centralized, and Bitfinex said it's backed by the real USD value but we didn't know how the way it's exactly works. I love to hear more about the scheme of it. But personally, I'm will stay away from Tether. And also new stable coin are being launched.

Tether is a project that has grown a long way in this market and I'm sure it will not scam. This market is in a lot of changes and bad news is constantly being released but be alert to the situation.

What do you think of Paxos (https://coincodex.com/crypto/paxos/) stable coin? Binance (https://coincodex.com/exchange/binance/) recently added it to their stable coin list.

The price of USDT has fell to a low of $0.96 is continuing to fall as trader are buying any cryptocurrency in exchange for Tether or USDT, which also brought a rally in major cryptocurrencies. Bitcoin broke $7000 on Binance and Ethereum $228.

I have been using Tether to edge my portfolio on Bittrex and Poliniex before but the news am hearing about them now is not that encouraging. There are speculation that they don't have the equivalent of fiat USD to USDT and they are unable to come out with tangible proof.

Based on the recent news, Tether (https://coincodex.com/crypto/tether/) destroyed 500 million USDT tokens that were held in its treasury wallet.

https://coincodex.com/article/2538/tether-burns-500-million-usdt-tokens/

Tether really is not a scam, it is a great altcoin. But these rumors are made by whales. They make it so that many traders sell off and make the price of Bitcoin increase. that is strategy. So do not believe the news, believe what you think.

Tether causes many mixed feelings to many traders, they say that this project has a lot of scams, which today shows on the market, because the stable coin cannot show volatility. A lot of different opinions. Here everyone decides for himself.

I agree with your thoughts, tether should be able to defeat ethereum if it has in common with the USD, but this does not and will never grow higher than ethereum

i like to believe that USDT was launched to replace fiat money in these exchange sites whose owners cant afford licence for handling fiat
at the same time this allows to bring more crowd in to the crypto culture
as long as USDT parity with USD keeps stable, we can use USDT as mediation channel
price of most of the coins popping up and down synchronously with BTC and exchange of one coin to another coin is in most cases pointless

For the first time (since October) we are seeing a decrease in the market cap of Tether. This is how things should be, so maybe they are starting to be legit?

Finally some good news about Tether (https://coincodex.com/crypto/tether/)!

https://coincodex.com/article/2771/bloomberg-obtains-statements-suggesting-tether-ltd-has-sufficient-funds-to-back-usdt-tokens/

Have been introduced to tether as a hedge fund but its later realization about its value fluctuations with the real usd makes it a lot unreliable where it behaves as a normal altcoins. I this the Tusd is better for hedging. Would be preferred for such investments or savings but again I do not trust sending out to anyone to save for me in the guise of investments. Scams come in different shades

https://bitcoinexchangeguide.com/cryptocapital-co-may-be-cryptos-black-swan/