Tether: not even a scam

[Apekool]

The problem for tether is lack of transparency. We all know Tether is completely centralized, and Bitfinex said it's backed by the real USD value but we didn't know how the way it's exactly works. I love to hear more about the scheme of it. But personally, I'm will stay away from Tether.

Is there any means for the public to track the amount of tokens made? What prevents Tether from printing 5000000000 for itself, and just using them by small amounts, as more investors come over time?

[sourish]

Seriously funny thread, the explanation, the downright sarcasm! Here's the warning people, 'don't get tethered'! In other words, Tether’s service doesn’t promise to pay you anything in exchange for your Tethers. The company suggests that it will pay you money for your Tethers – but it doesn’t promise anything.

[AdamRay]

Tether was not fortunate enough to be investigated by the US government, which would have hurt Tether and its investors. I think if other commercial sites were investigated they would also suffer the same fate as Tether because proving crypto trading activities is very complex. Hopefully everything will be fine with Tether and the investors on it.

[Leocrypto da Vinci]

Well, it seems that these prophecies had some base...
I'm not so competent to evaluate the rumors about tether scam, but - if confirmed - the situation is really scaring, because it will affect the global crypto market.

[JesusCryptos]

It is crazy that nobody yet could audit the existence of real dollars behind Tether and all we have are just the claims that those dollars exist.

[Leocrypto da Vinci]

It is crazy that nobody yet could audit the existence of real dollars behind Tether and all we have are just the claims that those dollars exist.

Ah, this is actually an interesting aspect of the "tether scam": take all the bad rumors that you heard about tether and try to apply them at dollars or euros...  the result is very funny :-)

[mersmerizer]

The biggest problem about tether is that Tether is owned by Bitfinex, and Owner refuse to acknowledge this and tried to hide it before!!
I am suspecting that Bitfinex needed money to run due to a huge loss on its previous hacker attack. Maybe they lied and there is actually more than 30% of bitcoin is being stolen, but they could not risk and say the full amount, because this might lead to more problem where consumer losing trust to Bitfinex. So what I believe is that Bitfinex is using tether to finance its situation, and this working scheme continuously print free money and scam people.

[1kings]

Tether should sail through. It may come in a very bad shape though. You don't just claim you're backed with USD and not expect the US to have a look.

[Apekool]

You don't just claim you're backed with USD and not expect the US to have a look.

True, but if Tether aren't allowed to access that funds it doesn't matter how many dollars are in there. It's unclear on that matter.

[nndep3m]

Going by your post, the most guilty party moreso than bitfinex or Tether is in fact the US treasury and centralized Reserve banks everywhere, since they institutionalize the rule that sub-banks only need to have 20% of their "IOUs" redeemable with the other 80% allowing to be made up out of complete nothingness. That is, in all logic and obviousness, outright fraud. Why do you choose to direct your ire to Tether when it's a much lesser scam?

[shangerlaa]

tether and bitfinex is going to go down in flames and bitcoin will go back under 1k. Its the same story as with mt gox. This will not be happy ending its going to ruin the price of cryptos. Using fraudulent tether to pump up bitcoin is going to cause fincen sar to be involved and pretty much gg to tether.

[ThunderCatSteve]

It's risky to invest like most of the coins in the first pages in CMC but not a scam.

[Apekool]

It is crazy that nobody yet could audit the existence of real dollars behind Tether and all we have are just the claims that those dollars exist.

The last audit was in September 2017 and did reveal that literally every dollar was accounted for. This is of course great news compared to the thought that the money might not be there, but the question is if that amount can also decrease, i.e. can cash be withdrawn?

And who is the almighty benefactor who pays for all this? Because Tether doesn't receive income by storing dollars.

Or they get like a 1-3% interest? Seems unreasonable as the agreement that the amount of USD remains linked to the amount of USDT should apply to both parties.

[Apekool]

The biggest problem about tether is that Tether is owned by Bitfinex, and Owner refuse to acknowledge this and tried to hide it before!!
I am suspecting that Bitfinex needed money to run due to a huge loss on its previous hacker attack. Maybe they lied and there is actually more than 30% of bitcoin is being stolen, but they could not risk and say the full amount, because this might lead to more problem where consumer losing trust to Bitfinex. So what I believe is that Bitfinex is using tether to finance its situation, and this working scheme continuously print free money and scam people.

Aren't the wallets of Bitfinex traceable?

Don't have an account there so never checked, but I've seen several wallets pass lately that clearly had the description of Bitfinex, in the blockchain itself (not in the comments). Huge wallets.

[Apekool]

Why do the people who form Tether work under the company name of Thether if they can not earn an income by the 1:1 trade of USD/USDT. What benefit lies there, besides schemes that move into the grey area of the law with that same product? What other asset does Tether have besides USDT/USD? If USDT/USD are fixed really at 1:1, maybe then all these Tether people are volunteers. Maybe we've even met one of them while he or she was working overhours at McDonalds, to pay for the rent and electricity at hobby club Tether. That has to be it.

[thepo1m]

I don't think the idea started out as a scam, the people behind Tether understand the space, but i think things started going wrong for the team when the exchange was hacked and there was huge presssure on the team to refund customers fund, so they started print Tether out of thin air just like FED do

[codewench]

Is there any means for the public to track the amount of tokens made? What prevents Tether from printing 5000000000 for itself, and just using them by small amounts, as more investors come over time?

http://omnichest.info/lookupadd.aspx?address=3MbYQMMmSkC3AgWkj9FMo5LsPTW1zBTwXL&page=1

Tethers get Granted and Revoked at that address.

[Martinkuhn]

This is an important moment for the crypto world. Tether must prove without a doubt that it has $1USD per tether token.

This will restore confidence back to the crypto market. A token as pervasive as Tether cannot be caught in a scam, else it

will take a long time for the crypto market to recover..

Right now the markets are jittery due the series of bad news. There is a need for some sliver of good news so that the market can stabilized.

The investigation by the U.S. Commodity Futures Trading Commission on Tether must come out with Tether proven to have the reserves as it

has claimed. This is something sorely needed by the community at this moment.

[ulhaq]

Going by your post, the most guilty party moreso than bitfinex or Tether is in fact the US treasury and centralized Reserve banks everywhere, since they institutionalize the rule that sub-banks only need to have 20% of their "IOUs" redeemable with the other 80% allowing to be made up out of complete nothingness. That is, in all logic and obviousness, outright fraud. Why do you choose to direct your ire to Tether when it's a much lesser scam?

It's quite simple, if they are printing money out of this air, they are doing EXACTLY the same thing as the centralized players you described.

It is crazy that nobody yet could audit the existence of real dollars behind Tether and all we have are just the claims that those dollars exist.

Ah, this is actually an interesting aspect of the "tether scam": take all the bad rumors that you heard about tether and try to apply them at dollars or euros...  the result is very funny :-)

You can apply it to dollars and euros. There are plenty of companies that have audits published on their euro or dollar deposits - but now Tether is refusing to do so.

[rheenicole]

check this article... explains a little bit the Tether case.. it's a good article.

https://noticiasbitcoin.io/2018/01/29/tether-continua-emitiendo-moneda/