monsanto
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..like bright metal on a sullen ground.
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April 23, 2017, 08:23:53 PM |
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they say it is USDT.  Bittrex does, but Bitfinex has trading pairs listed in "USD" |
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vlom
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Activity: 1498
Merit: 1113
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April 23, 2017, 09:12:44 PM |
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sorry, i missread your post. bitfinex is not bittrex....
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Hueristic
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Activity: 3794
Merit: 4863
Doomed to see the future and unable to prevent it
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April 23, 2017, 09:44:59 PM |
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they say it is USDT. I'd be selling any usdt I had there right now if I hadn't already got out. This shit is gonna crash and burn but somone is making alot of money first and it ain't gonna be the ones holding the bag. Hah I misread it as well. Lol http://forklog.net/cunning-tether-or-why-terms-of-service-outweigh-whitepapers/ |
“Bad men need nothing more to compass their ends, than that good men should look on and do nothing.”
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sp_skeptic
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Activity: 110
Merit: 14
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April 23, 2017, 10:25:22 PM |
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Why is the price below 1 USD?
If there really is 1 USD in the bank for each 1 USDT, then it should maintain parity (absent a security threat to USDT). Even though it is partially owned by Bitfinex, I don't think they would be allowed to take those USD and apply it to Bitfinex liabilities. But Tether is incorporated in the virgin islands, I'm not sure of the legal implications, if any. The 2 main problems seem to be their disclaiming the exchange of USD and USDT, and the fact that there is no third-party audit of the bank accounts. We are only taking them at their word that they have the reserves to back up the tether. If they have the reserves but people don't know it, a loss of confidence in tether will cause USDT to fall below the price of USD. It really does not matter whether they have reserves or not. Read the terms of service at https://tether.to/legal. There is no mention of the reserves in the TOS but the obligation to redeem Tethers is disclaimed so there seems to be no obligation to use the reserves for anything in particular. As I read it Tether Limited would be free to use the reserves to back up Bitfinex or to buy apartments on Park Avenue for that matter. The disclaimers are quite sweeping. |
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Hueristic
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Activity: 3794
Merit: 4863
Doomed to see the future and unable to prevent it
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April 23, 2017, 10:41:13 PM |
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Actually I liked the final quote. It is the truth when it comes to TPTB. But then when they fight you they start out by smearing your name but do to Tethers non open backing they have already smeared their own name so step one is already checked off.  |
“Bad men need nothing more to compass their ends, than that good men should look on and do nothing.”
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scambust
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Activity: 1652
Merit: 1007
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April 23, 2017, 10:47:18 PM |
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Actually I liked the final quote. It is the truth when it comes to TPTB. But then when they fight you they start out by smearing your name but do to Tethers non open backing they have already smeared their own name so step one is already checked off. "First they ignore you, then they laugh at you, then they fight you." Overused cliche. |
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Hueristic
Legendary
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Activity: 3794
Merit: 4863
Doomed to see the future and unable to prevent it
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April 23, 2017, 10:49:45 PM |
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Actually I liked the final quote. It is the truth when it comes to TPTB. But then when they fight you they start out by smearing your name but do to Tethers non open backing they have already smeared their own name so step one is already checked off. "First they ignore you, then they laugh at you, then they fight you." Overused cliche. Yet still applicable but not so much in this case, yet it is for the scene as a whole. |
“Bad men need nothing more to compass their ends, than that good men should look on and do nothing.”
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ulhaq
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April 24, 2017, 04:34:39 AM |
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Why is the price below 1 USD?
If there really is 1 USD in the bank for each 1 USDT, then it should maintain parity (absent a security threat to USDT). Even though it is partially owned by Bitfinex, I don't think they would be allowed to take those USD and apply it to Bitfinex liabilities. But Tether is incorporated in the virgin islands, I'm not sure of the legal implications, if any. The 2 main problems seem to be their disclaiming the exchange of USD and USDT, and the fact that there is no third-party audit of the bank accounts. We are only taking them at their word that they have the reserves to back up the tether. If they have the reserves but people don't know it, a loss of confidence in tether will cause USDT to fall below the price of USD. It really does not matter whether they have reserves or not. Read the terms of service at https://tether.to/legal. There is no mention of the reserves in the TOS but the obligation to redeem Tethers is disclaimed so there seems to be no obligation to use the reserves for anything in particular. As I read it Tether Limited would be free to use the reserves to back up Bitfinex or to buy apartments on Park Avenue for that matter. The disclaimers are quite sweeping. Granted, they have disclaimed liability, but obviously having no reserves is worse than having reserves. They purport to exchange any USD for USDT: https://tether.to/announcement/The Tether Reserve remains in surplus of the 1:1 backing of USDT and has more than the necessary currency on deposit to redeem all existing tethers. I think they are intending their statements to protect them in case someone with illicit background wants to make exchanges. |
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CoinHoarder
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Activity: 1484
Merit: 1026
In Cryptocoins I Trust
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April 24, 2017, 12:51:31 PM |
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Another thing to consider is that even though they may have they USD reserves to back up all the Tethers, it doesn't mean they will be able to maintain the 1$ peg. If they are having trouble transferring money, then that could very likely also mean that they are having trouble getting USD to the exchanges. If the crypto market goes on a bear run, then they may not be able to get enough money on exchanges to place the buy orders keep the price near $1.
Now Tether is at $9.20... a new all time low.
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krisnajsadrak
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Activity: 1092
Merit: 250
Hodlers Network
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April 24, 2017, 02:53:36 PM |
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Read this https://tether.to/faqs/It explains how Tether work. USDT is mostly used to go short for Bitcoin price. If Bitcoin price drops the equivalant Bitcoin value of USDT increases. yes,, with a simple explanation tether just like USD but in BTC value,, |
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European Central Bank
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Activity: 1288
Merit: 1087
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April 24, 2017, 02:56:02 PM |
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Actually I liked the final quote. It is the truth when it comes to TPTB. But then when they fight you they start out by smearing your name but do to Tethers non open backing they have already smeared their own name so step one is already checked off. but it has nothing to do with crypto. it's all to do with taiwan's slack regulations. there's a ton of non crypto payment processors who were attracted there because of that and now they have the same problem. |
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udecker
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April 24, 2017, 04:09:20 PM |
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Actually I liked the final quote. It is the truth when it comes to TPTB. But then when they fight you they start out by smearing your name but do to Tethers non open backing they have already smeared their own name so step one is already checked off. but it has nothing to do with crypto. it's all to do with taiwan's slack regulations. there's a ton of non crypto payment processors who were attracted there because of that and now they have the same problem. The difficulty is the same that Bitfinex is having - international wires to and from Taiwan are blocked. This means that while the reserve is in surplus, only Taiwanese customers can actually redeem tethers at 1:1. (This includes Bitfinex, who has Taiwanese banks as well). No one being able to move funds to Kraken also means that those in Taiwan who would otherwise be filling the gap (and thus “defending the peg”) are unable to do so (but I hear that people are in Taiwan getting this set up to take advantage of this). It’s an extremely frustrating scenario, for sure. I do feel this is an attack on crypto companies, though - my guess is that after the asian banks, the european ones will be next and we’ll see this expand to include more blockchain business being unable to move funds. I hope not, but this is what it feels like. I absolutely would not say that Taiwan’s regulations are “slack” - they’re actually higher than most international standards, and Tether’s KYC/AML policies are even stricter beyond that. Craig |
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ulhaq
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April 24, 2017, 07:50:35 PM |
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That seems to be the main problem, but there are a few plaguing tether:
1. not promising to exchange USD/USDT (at least they should state they will, and have some caveats, rather than a blanket statement)
2. having all the banks in Taiwan. they should have them in multiple countries, which they are apparently working on.
3. not having an independent, third-party audits of the bank accounts.
I seriously doubt that Taiwan is the only option, certainly there are multiple countries where they could establish.
If all the problems stem from 2., then people should try to get money into tether by exchanging other crypto for it, and wait for it to go back up 8-9%.
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