Breaking News: Tether , a problem or just FUD...

[TimtheYoutuber]

For the full news coverage check out my YouTube Video:  Breaking News: Tether , a problem or just FUD...




Do you guys think this is real? Or do you think that it is just a coincidence that Tether isn't getting an audit.

[TimtheYoutuber]

This is a big problem, I do not like the way the market is. What are your thoughts?

[Xavofat]

Tether's reason for avoiding an audit from Friedman LLP was that it was supposedly taking too long.  By their logic, if something isn't taking a long time, that means that they should stop it from happening altogether.

An audit is obviously going to take a long time for a first-time client who runs a financial service and has never had an audit at all.  If Tether want some people to just check some balance sheets, they can bring in whatever thugs they like.

If Tether were legitimate, they wouldn't be doing so many blatantly shady things.

[coolcoinz]

 Not to make fun of you, but if you want to look professional in future videos you might consider closing your bathroom door or changing the angle of your camera

People were being suspicious of tether for some time, but let's say tether is legit and they have all the reserve they're saying we can still see a huge "bank run" that could crash its price simply because of those suspicions spreading. Maybe those who are spreading the news are hoping for a crash to buy more? Not very probable, but we can't dismiss any possibilities. The options that I see are:
1. They will get a decent audit done and deal with it the right way.
2. They will have to deal with the bank run and a possible crash despite the rumors being true or not.

[Freddyclose]

it's a shame that there is so much problem with the tether, because it is very useful, but personally I have no confidence

[bohr]

Not to make fun of you, but if you want to look professional in future videos you might consider closing your bathroom door or changing the angle of your camera

People were being suspicious of tether for some time, but let's say tether is legit and they have all the reserve they're saying we can still see a huge "bank run" that could crash its price simply because of those suspicions spreading. Maybe those who are spreading the news are hoping for a crash to buy more? Not very probable, but we can't dismiss any possibilities. The options that I see are:
1. They will get a decent audit done and deal with it the right way.
2. They will have to deal with the bank run and a possible crash despite the rumors being true or not.

Well, this is the problem with using centralized coins, you need to trust they are doing what they say they are doing and every time we have done that things have turned out wrong not only for a few people but sometimes for entire countries, this is why I find something like tether to be odd to say the least, we have decentralized coins and yet people prefer to store their money in tether.

[Justin Dowman]

Why do you need an audit?
People are already pouring money on them!

[TimtheYoutuber]

Tether's reason for avoiding an audit from Friedman LLP was that it was supposedly taking too long.  By their logic, if something isn't taking a long time, that means that they should stop it from happening altogether.

An audit is obviously going to take a long time for a first-time client who runs a financial service and has never had an audit at all.  If Tether want some people to just check some balance sheets, they can bring in whatever thugs they like.

If Tether were legitimate, they wouldn't be doing so many blatantly shady things.

It is very sketchy

noooooo

No what...?

Not to make fun of you, but if you want to look professional in future videos you might consider closing your bathroom door or changing the angle of your camera

People were being suspicious of tether for some time, but let's say tether is legit and they have all the reserve they're saying we can still see a huge "bank run" that could crash its price simply because of those suspicions spreading. Maybe those who are spreading the news are hoping for a crash to buy more? Not very probable, but we can't dismiss any possibilities. The options that I see are:
1. They will get a decent audit done and deal with it the right way.
2. They will have to deal with the bank run and a possible crash despite the rumors being true or not.

I did that on purpose to make conversation.

I agree, however I dont think they will get the audit done. The more I think about it, I dont think it will be a huge crash that a lot of people think. I dont think it will be a huge 50% drop in bitcoin, but it does look bad for it.

it's a shame that there is so much problem with the tether, because it is very useful, but personally I have no confidence

I certainly dont have any, and I am pretty sure they have printed more tokens since the creation of this thread. ( I think )

Why do you need an audit?
People are already pouring money on them!

They need an audit so investors can put a little more trust in them.

[codewench]

I certainly dont have any, and I am pretty sure they have printed more tokens since the creation of this thread. ( I think )

Surprisingly no. The last printing of USDT in the Omni network riding on top of Bitcoin was on the 23rd:

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

[TimtheYoutuber]

The U.S. Commodity Futures Trading Commission has now requested a subpoena according to Coindesk!


Do you guys think this will end well?

[vk279]

Most importantly how is it going to affect Bitcoin. Is it going to pull down BTC and then whole crypto currency market?
How would ETH fare in this situation?  I am wondering how can Tether with such a tiny market cap of about 2 billion dollars affect Bitcoin who market cap is 175 billion.
What do you guys/gals think?

[TimtheYoutuber]

Most importantly how is it going to affect Bitcoin. Is it going to pull down BTC and then whole crypto currency market?
How would ETH fare in this situation?  I am wondering how can Tether with such a tiny market cap of about 2 billion dollars affect Bitcoin who market cap is 175 billion.
What do you guys/gals think?

It certainly isnt good publicly as well though, when people see $2B evaporate they wont want to enter the space. If everyone starts selling tether, others that are not aware or dont evaluate news are going to go " shit bitcoin is selling, we need to sell" and then hell breaks lose.


Although I dont think it is the end of the world, it certainly wont be good.

[Wheelige]

Tether was super handy, and made it easy to play around on exchanges. Why cant people just do what they say they are going to do? Maybe the news wouldnt have had such a big impact if it turned out tether was bollocks without the pre-news. Im sure anyone that does technical analysis on bitcoin is getting pissed off by the constant stream of bad news that reverses any bullish trend with a bear one only for it to turn around again a week later when it turns out the news was wrong or overblown.

[peter.from.penn]

I doubt that Tether is legit.  There are too many red flags.  That said, remember that it only has a 2 billion market cap, compared to the entire 520 billion value of crypto.  If and when Tether collapses, it may have a short-term impact on the market, but things will recover.  No worries.

[TimtheYoutuber]

I doubt that Tether is legit.  There are too many red flags.  That said, remember that it only has a 2 billion market cap, compared to the entire 520 billion value of crypto.  If and when Tether collapses, it may have a short-term impact on the market, but things will recover.  No worries.

I agree, I hope we can just get passed it and move on quickly.

[ebliever]

I call it FUD, and am surprised at the negative sentiment I keep seeing expressed. Everyone seems to assume that the problem with getting an audit done automatically means there's a shortfall in dollars backing it, when that is the less likely explanation given what we already know of their banking troubles. What is far more likely is that the irregular and problematic banking channels they are working with, and that keep shifting on them, is what is making it virtually impossible to get an audit done to the satisfaction of the auditor. It's no secret they are struggling to establish a robust and reliable set of banking partners for transfers, but that's not the same as saying the dollars don't exist.

Worst case I expect them to get in trouble over the use of shell accounts and companies in moving money around. But if authorities keep in mind that they are trying to protect people, not create a crisis that harms them, they'll manage any punitive actions in a way that does not steal funds from tether holders.

You can see that the FUD has barely registered with the price of tether on coinmarketcap. Bitfinex is still letting people wire out $ on a 1:1 basis with tether on their account last I checked yesterday. So people in the know are maintaining the price and taking advantage of the FUD to profit off even slight dips with arbitrage, I believe.

[Cryptoshops]

It will be a big problem and people will be pretty pissed if they cannot withdraw. It will also have an impact on other exchanges and nobody even knows if they hold the money in reserves to pay out, They have something like 1.3 billion dollars of oustanding tokens They dont help themsleves by being pretty shady when they get asked question by the media.

They have also been fined in the past

"In June 2016 the CFTC fined Bitfinex $75,000 for offering “illegal” cryptocurrency transactions and failing to register as a futures commission merchant."

[TimtheYoutuber]

It will be a big problem and people will be pretty pissed if they cannot withdraw. It will also have an impact on other exchanges and nobody even knows if they hold the money in reserves to pay out, They have something like 1.3 billion dollars of oustanding tokens They dont help themsleves by being pretty shady when they get asked question by the media.

They have also been fined in the past

"In June 2016 the CFTC fined Bitfinex $75,000 for offering “illegal” cryptocurrency transactions and failing to register as a futures commission merchant."

This is certainly not good news, but a lot of people have known about this for awhile. I have been sketchy of tether for a long long time, since it acts as another token and doesnt actually have USD backing.

[Wheelige]

Even if tether does go up in a ball of flame, exchanges will quickly suss something out in order to maintain their business. If they do not already have pairings for actual dollars they could create their own version of USDT. It is in their interest to have a way of getting into crypto and if they do not quickly adapt that will see other exchanges taking up their market share. I wouldnt be surprised if exchanges that do not offer USD/EUR pairings are working in the background on something that will replace USDT so that they can immediately implement it if tether is confirmed as bust.

[TimtheYoutuber]

Even if tether does go up in a ball of flame, exchanges will quickly suss something out in order to maintain their business. If they do not already have pairings for actual dollars they could create their own version of USDT. It is in their interest to have a way of getting into crypto and if they do not quickly adapt that will see other exchanges taking up their market share. I wouldnt be surprised if exchanges that do not offer USD/EUR pairings are working in the background on something that will replace USDT so that they can immediately implement it if tether is confirmed as bust.

Not so sure this will be the case, but anything is possible in the world of crypto.