What will happen to Tether?

[bbc.reporter]

To my understanding Tether is the cryptocurrency created and backed by Bitfinex. If they become bankrupt and stop operating as an exchange what will happen to all the tethers in circulation? Will it all lose value also? Will Bitfinex have the responsibility to exchange them for real us dollars?

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[Abiky]

To my understanding Tether is the cryptocurrency created and backed by Bitfinex. If they become bankrupt and stop operating as an exchange what will happen to all the tethers in circulation? Will it all lose value also? Will Bitfinex have the responsibility to exchange them for real us dollars?

That will be something very interesting to see. As of today, Tether has been declining in price making it loose its peg to fiat USD. It seems that we cannot trust "pegged cryptocurrencies" like Tether and Nubits since they will turn out to loose its peg at some point. Take a look at Nubits, it seems that it will take a long time (if it will) to recover.

The only pegged asset left is bitUSD. Let's see if this one fails too. 

[capoeira]

To my understanding Tether is the cryptocurrency created and backed by Bitfinex. If they become bankrupt and stop operating as an exchange what will happen to all the tethers in circulation?

Why would Tether become bankrupt if BitFinex goes bankrupt? They are just shareholders

[raphma]

To my understanding Tether is the cryptocurrency created and backed by Bitfinex. If they become bankrupt and stop operating as an exchange what will happen to all the tethers in circulation?

Why would Tether become bankrupt if BitFinex goes bankrupt? They are just shareholders

not exactly bankrupt but price crash.
whats the point of a pegged crypto if it cant keep 1:1 with fiat?

[capoeira]

To my understanding Tether is the cryptocurrency created and backed by Bitfinex. If they become bankrupt and stop operating as an exchange what will happen to all the tethers in circulation?

Why would Tether become bankrupt if BitFinex goes bankrupt? They are just shareholders

not exactly bankrupt but price crash.
whats the point of a pegged crypto if it cant keep 1:1 with fiat?

you can always change Thether $s against real $s, so the price atm is not justified and should be arbitraged, The reason this is not happaning is because there seems a myth going round that if Finex bankrupts Tether will also. As soon as USDT-USD is back on Finex this should normalize

[amacar2]

There is also poloniex supporting USDT and also bittrex have Tether, but it is true bitfinex was one of the large shareholders in tether. Tether to USD price seem 1:1 if we see price of bitcoin in poloniex and other exchanger which support real USD trading.

[GreenBits]

I think the fiat for the peg isn't stored with bitfinex, and is not cryptocurrency, but fiat. Essentially, the hack shouldn't affect this, they are related but different things.

[bbc.reporter]

I think the fiat for the peg isn't stored with bitfinex, and is not cryptocurrency, but fiat. Essentially, the hack shouldn't affect this, they are related but different things.

If all the tether.USD holders decide to cash out in fiat will their supply be enough? Or if Bitfinex closes down, now who will be the institution responsible for backing all the tether? If there is no confidence then I could see Poloniex and the others delisting it. Now how will the holders cash out?

[monsanto]

To my understanding Tether is the cryptocurrency created and backed by Bitfinex. If they become bankrupt and stop operating as an exchange what will happen to all the tethers in circulation? Will it all lose value also? Will Bitfinex have the responsibility to exchange them for real us dollars?

Tether website says things about transparent audits, etc, yet there is no information about this provided there. Based on this and how most things in crypto end up, I'd say odds are better than 80% it all ends in disaster.

[capoeira]

Their https://wallet.tether.to/transparency page for sure is kind of a joke. I mean, what transparency is this? Everybody can put those numbers in a page. where are the documents to prove?

[Daisy14]

If tether wobbles and dies, I will not be surprised...

[bbc.reporter]

Bitfinex might not last long if their customers leave because of the lack of confidence and trust in them. Tether holders should unload their shares to avoid losses. It is all becoming clear now.

[talkbitcoin]

Bitfinex might not last long if their customers leave because of the lack of confidence and trust in them. Tether holders should unload their shares to avoid losses. It is all becoming clear now.

so far bitfinex has came back and if you look at the daily volume on their site or even checking out coinmarketcap the section on bitcoin, you can see that it is already on top and last time i checked bitfinex is the second highest trade volume.
which is strange by the way!

[Thenoticer]

Tether and Bitfinex are separate corporations and enterprises.

Tether and the tether reserve are not affected by the recent security breach at Bitfinex.

Craig

[GreenBits]

Bitfinex might not last long if their customers leave because of the lack of confidence and trust in them. Tether holders should unload their shares to avoid losses. It is all becoming clear now.

so far bitfinex has came back and if you look at the daily volume on their site or even checking out coinmarketcap the section on bitcoin, you can see that it is already on top and last time i checked bitfinex is the second highest trade volume.
which is strange by the way!

People are relying on the 'lightning doesn't strike the same place twice' thing I guess. After shapeshift got its series of hacks, I can't trust in that too much. Although they might have changed some shit on the back end, I think they came back a little too soon. But for the brand's sake I understand, you don't get to go dark for too long  in this space without losing user confidence. The assumption of bad faith is expected here, this is crypto.

[capoeira]

As soon as USDT-USD is back on Finex this should normalize

yep. done

[Abiky]

not exactly bankrupt but price crash.
whats the point of a pegged crypto if it cant keep 1:1 with fiat?

Exactly. That would limit our options to hedge our Bitcoins against the dollar. So, until now there is no way to protect against crypto volatility (as far as I know) thus, it would be advised to proceed with caution. Thank goodness that Tether, is back to $0.99 (near the $1 mark) but still this is something that could change anytime. I just hope that a stable crypto will have solve these issues, probably backed by the government. Just my opinion. 

[European Central Bank]

I can't bring myself to like the idea of a pegged anything. a peg implies that there's a point of failure or potential for scamminess somewhere along the line.

when you include the evil triumvirate of crypto, dollars and peg then i'm gonna run a mile and never look back. there is no one competent, honest or well capitalized enough in this space to make something like this inspire confidence in me.

[capoeira]

not exactly bankrupt but price crash.
whats the point of a pegged crypto if it cant keep 1:1 with fiat?

Exactly. That would limit our options to hedge our Bitcoins against the dollar. So, until now there is no way to protect against crypto volatility (as far as I know) thus, it would be advised to proceed with caution. Thank goodness that Tether, is back to $0.99 (near the $1 mark) but still this is something that could change anytime. I just hope that a stable crypto will have solve these issues, probably backed by the government. Just my opinion. 

price is like 0.9999, which is justified since it is not the "real dollar"; before I can "buy someting with it" there is work involved.

[bbc.reporter]

Tether and Bitfinex are separate corporations and enterprises.

Tether and the tether reserve are not affected by the recent security breach at Bitfinex.

Craig

It is hard to trust what they are saying after the hack. I do not think the Bitfinex CEO is qualified to run an exchange. I will say again if Bitfinex will go under, what will happen to tether when the people responsible are hiding and cannot be seen? Tether is not trustless therefore it is dangerous.