The market effect of Tether collapse - and our survival strategy

[yo_mama]

So news... Bitfinex is planning to build decentralized exchanged on EOS...

This is concerning.

http://blocktribune.com/crypto-exchange-bitfinex-build-decentralized-exchange-eos-io-platform/

[yo_mama]

Lol it seems Tether is changing its target of pumping from BTC to ETH.

https://cryptovest.com/news/tethers-abandon-bitcoin-minting-moves-to-ethereum/

Is this fake news or legit?

Uncertain time.

[fabozzi]

Hi @yo_mama

Great post!
Scenario 6 is the likely one imo. I agree BTC or ETH might pump on exchanges with USTD only as traders would want to sell out of those exchanges. However, I think the exchanges that do accept USD fiat would experience a price differential for the major cryptos because you don't have people on those exchanges suddenly trying to find a safe haven crypto. That would then lead to a momentary arbitration across exchanges (which the bots would no doubt pick up very quickly) until the increased prices of the major cryptos are leveled out across the globe.

@play regarding your points on market sentiment, liquidity and volume, in your view:
 - is there a possibility that market sentiment might not destroy USDT, but indeed support it at some level. ie. the unravelling of fraud for USDT would result in the BTC/USDT cross being say 70% of what the price is at the time? Otherwise I dont see reason for people to keep USDT should USDT turn out to be a complete fraud
 - regarding liquidity, in fiat markets where there is a sudden lack of liquidity, asset prices start to suffer though there is also a flight to safety to assets like gold. There is also flights to safely to alternative  currencies that can be observed in the cross currency spreads due to increased demand. Do you think that rather than the markets tumbling, the market will simply reposition itself such that Btc becomes the quote currency?


I also would like to hear what everyone thinks about the role the following entities would play:
 - bots
 - whales
 - the exchange itself (would they halt trading and prevent withdrawls)

[elenora]

On 3rd August, Zebpay, India’s leading cryptocurrency exchange tweeted the launch of its new coin TrueUSD [TUSD] 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.

[CoinCodex]

It appears that 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/

[namko]

Well, we'll see now how it plays out. It appears exchanges' APIs don't work since all listing sites from CoinCodex.com, through CMC, and even cryptowat.ch don't display the correct price. When USA citizens wake up, we'll see the true nature of the beast.

[Leenwar]

As long term value investors I don’t pay attention for the noises but this is something I feel it’s not just a noise.

[sorrros]

Very interesting article.
Tether is surely fishy coin and we should aware holding it.
But I disagree with you. Tether is a good coin for manipulation, even if the market value is not the biggest one .

[el kaka22]

As long term value investors I don’t pay attention for the noises but this is something I feel it’s not just a noise.

Obviously tether and the probability of it imploding is not a noise and a whole lot of people have always tend to imagine something like this coming into play in the long run, until they get some proof to get their doubts subdued. There is a lot fishy with tether and bitfinex and that is something that has really raised huge eyebrow for a while now but how things turn out at the end based on whether tether is backed by a physical cash or not, is something that we would only have to wait to see but for now, nothing is guaranteed and the best is to always be watchful of the things going on in the market.

Very interesting article.
Tether is surely fishy coin and we should aware holding it.
But I disagree with you. Tether is a good coin for manipulation, even if the market value is not the biggest one .

Tether has always been fishy for a very long time now and I can tell the level at which most people are actually being fearful with the impact tether could cause in the market based on the fact that it has been used to pump the market over the years. What is important is to always stay vigilant in the market and be very vigilant for information. The whole thing about tether being audited is even something we have no idea how it all ended or if they really were able to prove they are holding real cash as a backup for every tether printed, but at the same time, i would still be very careful.