Tether: not even a scam

[fistfullofbtc]

well it isn't truly fungible at the mo but i am sure they will inject capital, probably get polo to give some of the money it makes off masterstrokes and such.

[monsanto]

It's strange because on Polo they specifically say it is USDT, but on bitfinex for the most part it is presented as actual USD. Do they have the same policy if tether goes kaput?

[fistfullofbtc]

it won't go kaput overnight just devalue which would mess up a lot of stuff but probably increase eth and btc price. when i first noticed it i thought it was USD. it is purely used as as a selling piece to people as USD are known the world over, but also to keep the financial regulators off there backs. if it failed it would lead to regulation, therefore the exchanges will work this out, but like i said they should stick to btc and eth, but i guess there is a lot of money made using it.

a bank run would kill it overnight mind.

[york780]

RIP

[European Central Bank]

a bank run would kill it overnight mind.

that's implying it's fractional reserve. it may be a shit show, but i really don't think it would've gotten anywhere if it couldn't meet all of its obligations.

[york780]

a bank run would kill it overnight mind.

that's implying it's fractional reserve. it may be a shit show, but i really don't think it would've gotten anywhere if it couldn't meet all of its obligations.

How you doing man?
Seems that stable Tether got rekt. Maybe it will moon next year 

[vlom]

i took the loss and changed my USDT to USD @kraken.

[york780]

i took the loss and changed my USDT to USD @kraken.

Good job, looks like you just changed worthless shit to USD 

[cryptonia]

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.

But you aren't using their service?

[European Central Bank]

But you aren't using their service?

hell no and i never would. what they're offering isn't reassuring enough. bitfinex are involved and they've always had a serious lack of transparency. this is no different.

[cryptonia]

But you aren't using their service?

hell no and i never would. what they're offering isn't reassuring enough. bitfinex are involved and they've always had a serious lack of transparency. this is no different.

I guess my point was that if they offered to convert Tether into cash it would be complicated and if for some reason they could not (and there could be legit ones) people would complain.


I was always very wary because they claimed to be transparent and audited but there was zero evidence that they were from what I could see. So that was a red flag.

But why did Poloniex and others get involved and allow them to list?

[ROT13]

Krakens definitely trying to push USDT over the edge by opening margin trading.  

My 5c is that this will all workout fine for Tether in the end and the usual bunch of people with inside info will have made some good money out another creative interpretation of the latest money making trend in crypto land- over dramatise the latest news (block size debate, exchange banking issues), get cointelegraph etc to play along, wait for the weak hands to panic, collect their crypto at bargain prices.

[monsanto]

Krakens definitely trying to push USDT over the edge by opening margin trading.  

My 5c is that this will all workout fine for Tether in the end and the usual bunch of people with inside info will have made some good money out another creative interpretation of the latest money making trend in crypto land- over dramatise the latest news (block size debate, exchange banking issues), get cointelegraph etc to play along, wait for the weak hands to panic, collect their crypto at bargain prices.

In terms of the margin trading, if Tether is actually in trouble, that could help shore it up IMO.  As for what is behind some of the strange responses I've seen on reddit from a Tether dev -- I have had similar thoughts as yours concerning the FUD manipulation being employed.  I can only think of three reasons to make the statements I saw: either (1) Tether's really aren't backed up fully by reserve USD or (2) they are backed up by reserve USD, they just want to create enough uncertainty so they'll be a temporary Tether price drop that they can profit off... OR finally (3) Tether is fully backed by USD but they can't fully say they have the reserves because by making statements like that they could be exposing themselves to libertydollar type prosecution. I'm hoping it's #3, or at worst some of 2 and 3.

[udecker]

Krakens definitely trying to push USDT over the edge by opening margin trading.  

My 5c is that this will all workout fine for Tether in the end and the usual bunch of people with inside info will have made some good money out another creative interpretation of the latest money making trend in crypto land- over dramatise the latest news (block size debate, exchange banking issues), get cointelegraph etc to play along, wait for the weak hands to panic, collect their crypto at bargain prices.

In terms of the margin trading, if Tether is actually in trouble, that could help shore it up IMO.  As for what is behind some of the strange responses I've seen on reddit from a Tether dev -- I have had similar thoughts as yours concerning the FUD manipulation being employed.  I can only think of three reasons to make the statements I saw: either (1) Tether's really aren't backed up fully by reserve USD or (2) they are backed up by reserve USD, they just want to create enough uncertainty so they'll be a temporary Tether price drop that they can profit off... OR finally (3) Tether is fully backed by USD but they can't fully say they have the reserves because by making statements like that they could be exposing themselves to libertydollar type prosecution. I'm hoping it's #3, or at worst some of 2 and 3.

Astute observations.  It’s not #1 and while #2 would be evil-genius clever, it’s not the issue either.  (Wire troubles mean neither Tether nor Bitfinex can wire funds to Kraken to buy up all the cheap tethers). :-(

[BitScrip]

Tether's purpose is very different from most coins. If there are other actions being taken on it and it's value becomes diminished beyond it's function then it will cease.

"Scam" is thrown around so much in this forum it's lost meaning. Most "scam"s are not even close but rather kneejerk reactions or FUD.

More options for trading and settlement are better overall.

[thejaytiesto]

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 ?

Im not sure if that guy is that dumb or just trolling.


Anyway, im done with so called "digital dollars" that supposedly stay pegged with the dollar. Everything tried thus far has been a failure (anyone remembers nubits?). I wish there was a way to do this so you don't need to get fucked by the taxman if you want to go to fiat temporarily to profit from a bitcoin dip, but all those "cryptodollar" coins keep crashing eventually.

[Spoderman]

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 ?

Im not sure if that guy is that dumb or just trolling.


Anyway, im done with so called "digital dollars" that supposedly stay pegged with the dollar. Everything tried thus far has been a failure (anyone remembers nubits?). I wish there was a way to do this so you don't need to get fucked by the taxman if you want to go to fiat temporarily to profit from a bitcoin dip, but all those "cryptodollar" coins keep crashing eventually.

BitUSD is still worth 1 USD. So far Bitshares is the only one that has accomplished parity for this long.

[muddafudda]

Tether.to is a service that prides itself on a transparent company. For this purpose, a company publicly makes available its reserve balance. However, there is a discrepancy of millions of dollars between your reservations and the article number in circulation. One thing is certain, this is a very unusual situation. The company issues USDT tokens, which have their value tied to the US dollar. Currently, current liabilities are $ 42,313,582.47, which is a relatively high amount. However, its assets represent only $ 41,371,231.12. The difference between the two numbers is almost one million, which is marked on the page as negative equity.

[game_changer]

this is what happens with a centralised peg!

More reason why I cant wait for Bitbays decentralised rolling peg this coming Winter.

[game_changer]

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 ?

Im not sure if that guy is that dumb or just trolling.


Anyway, im done with so called "digital dollars" that supposedly stay pegged with the dollar. Everything tried thus far has been a failure (anyone remembers nubits?). I wish there was a way to do this so you don't need to get fucked by the taxman if you want to go to fiat temporarily to profit from a bitcoin dip, but all those "cryptodollar" coins keep crashing eventually.

bitbay this winter are doing one. http://bitbay.market/about/pegging/