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Author Topic: Tether: not even a scam  (Read 18109 times)
sp_skeptic
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April 22, 2017, 12:09:35 PM
Merited by DooMAD (2), bobq (1)
 #1

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:

Quote from: https://tether.to/faq (fair use applies)
How do I know my Tether is secure?

Tether is built on top of the revolutionary and cryptographically secure open blockchain technology and adheres to strict security and global government laws and regulations.

All tethers are pegged at one-to-one with matching fiat currency (e.g., 1 USD₮ = 1 USD) and are backed 100% by actual assets in our reserve account. As a fully transparent company, we publish a real-time record of all value held and transferred in and out of our reserve account.

Tethers can be securely stored, sent and received across the blockchain and are redeemable for cash (the underlying asset) pursuant to Tether Limited’s terms of service.

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

Quote from: https://tether.to/legal (fair use applies)
3. Purchase and Redemption of Tethers: The Site is an environment for the purchase and redemption of Tethers. 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.

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:

Quote from: https://tether.to/legal (fair use applies)
Limitation of Liability & Release: Important: Except as may be provided for in these Terms of Service, we assume no liability or responsibility for and shall have no liability or responsibility for any claim, application, loss, injury, delay, accident, cost, business interruption costs, or any other expenses (including, without limitation, attorneys’ fees or the costs of any claim or suit), nor for any incidental, direct, indirect, general, special, punitive, exemplary, or consequential damages, loss of goodwill or business profits, work stoppage, data loss, computer failure or malfunction, or any and all other commercial losses (collectively, referred to herein as “Losses”) directly or indirectly arising out of or related to:
   1.   these Terms of Service;
   2.   the Site, and your use of it;
   3.   the Services, and your use of any of them;
   4.   the real or perceived value of any Tethers or of digital tokens, money, or any other property used to purchase Tethers;
   5.   any failure, delay, malfunction, interruption, or decision by us in operating the Site or providing any Service;
   6.   any stolen, lost, or unauthorized use of your account information any breach of security or data breach related to your account information; or
   7.   any offer, representation, suggestion, statement, or claim made about us, the Site, or any Service by any Associate.
You hereby agree to release the Associates from liability for any and all Losses, and you shall indemnify and save and hold the Associates harmless from and against all Losses. The foregoing limitations of liability shall apply whether the alleged liability or Losses are based on contract, negligence, tort, unjust enrichment, strict liability, or any other basis, even if the Associates have been advised of or should have known of the possibility of such losses and damages, and without regard to the success or effectiveness of any other remedies.

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.

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york780
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April 22, 2017, 09:11:27 PM
 #2

Tether was fine until some exchanges like Kraken hate it. Tether to the moon! I expect a Tether pump soon.
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April 23, 2017, 05:31:49 AM
 #3

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 ?
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April 23, 2017, 05:42:52 AM
 #4

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

cryptonia
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April 23, 2017, 12:12:50 PM
 #5

You can't really expect them to offer all sorts of guarantees
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April 23, 2017, 12:16:53 PM
 #6

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.
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April 23, 2017, 02:34:25 PM
 #7

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

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April 23, 2017, 03:02:41 PM
 #8

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

So, does anyone know what's going on on here? 1 USDT is now worth 0.92 USD.
humblemonkey
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April 23, 2017, 03:14:21 PM
 #9

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

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
Robertqueen2
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April 23, 2017, 05:07:22 PM
 #10

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.


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8bitrobot
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April 23, 2017, 05:26:42 PM
 #11

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

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 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?
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April 23, 2017, 05:44:09 PM
 #12

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

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 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.

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humblemonkey
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April 23, 2017, 06:03:04 PM
 #13

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

current value: $0.922114


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

Kraken value: $0.9105
bitserve
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April 23, 2017, 06:18:59 PM
 #14

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.


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PokerDiceMan
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April 23, 2017, 06:24:44 PM
 #15

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

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
bitserve
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April 23, 2017, 06:26:09 PM
 #16

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

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.

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humblemonkey
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April 23, 2017, 06:30:01 PM
 #17

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
bitserve
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April 23, 2017, 06:45:35 PM
 #18

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 Smiley

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fistfullofbtc
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April 23, 2017, 06:46:40 PM
 #19

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

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April 23, 2017, 06:55:45 PM
 #20

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$?
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