Tether: not even a scam

[leea-1334]

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.

[Filmmmakerr]

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.

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.

[illyiller]

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.

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.

[9Bank]

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.

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.  

[MOB]

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.

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?

[Colorblind]

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.

[clip123]

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

[NickCrypto]

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

[NoiseBoy]

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 ?

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.

[sstercan]

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

[European Central Bank]

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.

[cahtreber]

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

[European Central Bank]

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.

[Dralarn]

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.

[NewbCoins]

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

[ulhaq]

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?).

[StelioKontos]

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

[DigeNarrator]

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

[CrypticGambit]

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.

[mackstuart]

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.