Is Tether and Bitfinex the New MT Gox?

[mbelosto]

Allegations are being made that bitcoin’s biggest exchange, Bitfinex, which is currently handling some incredible volumes of $800 million in the past 24 hours, is printing money out of thin-air through Tether, a centrally issued token that is meant to be backed by dollars.

The allegation is that bitfinex is in effect printing money (tethers) out of thin air, with no dollar backing, then using the “fake” tether to buy “real” crypto such as bitcoin.

http://www.trustnodes.com/2017/11/17/tether-bitfinex-new-mt-gox

What do you think folks?

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[.crypto]

No idea, but I hope it's just FUD as always.

On the other hand: Converting crypto to fiat money has gone more and more complicated these days, especially for Bitfinex. They were forced to use Tether or loose business...

[slaman29]

Allegations or not, Tether has had real, real issues for a long time. Supporters will say no, this isn't another Mt. Gox, No this isn't another DAO (Ethereum rewind and forget we ever got hacked).

But hopefully people understand now that tokens like Tether are nothing at all like actual blockchain cryptocurrencies. The concept was a fairly good one, to allow for easy trading, but it should have been an internal system at best, not allowed to run amok with other crypto. Pegged to the US dollar and yet sliding in value. Hidden and vague connections to corporate structures. Running into trouble with banks.

This is what happens when corporate ideas are spun around crypto.

[mbelosto]

It took me about 2 hours to get LTC, ZEC and EOS out from bitfinex after withdraw request was submitted
Not critical for this time but I would expect better performance

[mbelosto]

Allegations or not, Tether has had real, real issues for a long time. Supporters will say no, this isn't another Mt. Gox, No this isn't another DAO (Ethereum rewind and forget we ever got hacked).

But hopefully people understand now that tokens like Tether are nothing at all like actual blockchain cryptocurrencies. The concept was a fairly good one, to allow for easy trading, but it should have been an internal system at best, not allowed to run amok with other crypto. Pegged to the US dollar and yet sliding in value. Hidden and vague connections to corporate structures. Running into trouble with banks.

This is what happens when corporate ideas are spun around crypto.

The lack of transparency with tether kills all good in this concept
And bitfinex "audit" just adds more questions