Tether Lied to You, and is basically worthless

[Khaos77]

https://cointelegraph.com/news/fractional-reserve-stablecoin-tether-only-74-backed-by-fiat-currency-say-lawyers

As part of an ongoing legal process involving the New York Attorney General,
Zoe Phillips of law firm Morgan Lewis said that at the time of writing,
74% of Tether’s reserves had USD and equivalent backing.

Which means by the time you read it, that 74% could be 50% or even zero.

Bitfinex CEO has been playing tether users for fractional reserve fools this entire time,
and using tether for his personal piggy bank.

Well at least you can know your money went to fund cocaine and hookers.  

Bitfinex CEO




SOON. The Mad Dash before the collapse.  

[TimeBits]

The entire purpose of tether is redundant, change fiat into fiat coin. Like what? Oh you don`t want to abide by fiat laws so you call it something else?

[Genemind]

Did you get all that information from a reliable source? It will be unfair for their part to get accused without further evidence. However, it's not bothering for some investors because most of them have switched from Tether to Btc when the lawsuit controversy has bloomed.

[Yakamoto]

The entire purpose of tether is redundant, change fiat into fiat coin. Like what? Oh you don`t want to abide by fiat laws so you call it something else?

Tether is more like a means of making a crypto that people can transact like it's crypto, but has a very defined value that likely won't change. It makes it easier to move, let's say, $500 of fiat between exchanges without worrying whether the crypto of choice is going to be higher or lower in value. It allows for a very easy benchmark to be followed across every exchange with little chance of difference in value.

The issue is that, in order for Tether to be backed by USD, it's required that a central authority maintains the USD reserves. This means that, without audits, anything can happen and Tether might not be completely backed. This is where all the issues start, and where the issues that OP is describing really come into play. It's unfortunate, but that's how it is. Backed currencies across the board have to deal with this kind of issue, although it's easier to be confident in a government retaining the required backing assets then it is a company.

[tmfp]

Did you get all that information from a reliable source?

Knock yourself out, para 33 especially..

 https://iapps.courts.state.ny.us/nyscef/ViewDocument?docIndex=SRhgJjZzQXYlFyWiIVeUsA==

[ghermghuda]

Lol ..this Tether issue is really getting out of hand and i think sooner or later we're going to have some of the emerging stable coins come to the top to kick USDT outta business. Tether has indeed lied for a long time and yeah you're right, it'll be funny when we'll have no way out if we don't leave now.

[pey]

I really don't understand why people care about tether, many exchanges have more than one stablecoin, there is even Dai as a safer decentralized option. I think rather exchanges should care about what is going on with tether.

[Kemarit]

Everyone really knows that Tether just run on fractional reserves, well at least that's what I'm speculating. And because they can't really prove anything since they were accused like two years ago and just dodging questions about their shady business operations. And now they have to face the music, so they either prove that they have the money to back it up or continue to like, but it doesn't work in a court of law. So don't be surprised is this supposed stable coins could be value like $.25-.$50 in the next coming months.

[Theb]

The entire purpose of tether is redundant, change fiat into fiat coin. Like what? Oh you don`t want to abide by fiat laws so you call it something else?

The creation of Tether is not entirely redundant you see during the bear market for crypto traders (and maybe investors) it was a  means of safe haven for protecting your capital from incurring any more losses in the market that is why it is also called “stablecoin” because it is one of the few unaffected cryptocurrencies out their when the market is shedding blood. It may not act entirely on it's purpose but for me this was a useful alternative compared to cashing out your coins entirely out of the market.

[enhu]

WE have been using USDT for a long time, surprising as it is. Somehow it helped a lot of traders back then, I hedge my coins thru it. So which stablecoin are we going to trust now?  Didn't some users send their Tether to their MEw wallet? I have read some threads about this.

[TryNinja]

WE have been using USDT for a long time, surprising as it is. Somehow it helped a lot of traders back then, I hedge my coins thru it. So which stablecoin are we going to trust now?  Didn't some users send their Tether to their MEw wallet? I have read some threads about this.

There is a USDT ERC20 token which can be stored on MEW. So nothing wrong with that.

About which stable coin to use, there are other coins (more trusted) which you can use. E.g: TUSD, USDC or DAI (decentralized).

Take a look at this: https://medium.com/ethex-market/which-stable-coin-is-best-for-you-2167d0d9f520

[Ayiranorea]

WE have been using USDT for a long time, surprising as it is. Somehow it helped a lot of traders back then, I hedge my coins thru it. So which stablecoin are we going to trust now?  Didn't some users send their Tether to their MEw wallet? I have read some threads about this.

There is a USDT ERC20 token which can be stored on MEW. So nothing wrong with that.

About which stable coin to use, there are other coins (more trusted) which you can use. E.g: TUSD, USDC or DAI (decentralized).

Take a look at this: https://medium.com/ethex-market/which-stable-coin-is-best-for-you-2167d0d9f520

There were more stable coins following tether, when we go examine in depth will get to know what is happening in the backend. Now people came to know about it as there arise an issue with Bitfinex. Stablecoins indicate different backing sources. It is good to be clear before investment.

[pixie85]

WE have been using USDT for a long time, surprising as it is. Somehow it helped a lot of traders back then, I hedge my coins thru it. So which stablecoin are we going to trust now?  Didn't some users send their Tether to their MEw wallet? I have read some threads about this.

There is a USDT ERC20 token which can be stored on MEW. So nothing wrong with that.

About which stable coin to use, there are other coins (more trusted) which you can use. E.g: TUSD, USDC or DAI (decentralized).

Take a look at this: https://medium.com/ethex-market/which-stable-coin-is-best-for-you-2167d0d9f520

This is why this tether thing is nothing but a temporary distraction. There won't be any panic run for the exit. You can quickly switch to another stablecoin or bitcoin and life goes on.

Tether which is nothing but a centralized private company will go bankrupt and leave a hole to patch on bitfinex because sooner or later they will have to get that money from somewhere or go down like mtgox.

[Adriano2010]

Well maybe the news is right, and there i see a lot of complains also on past when people say that Tether not have backed up their funds and coins are created and launch on market without have real back up.

[tyz]

Well, that's the problem when you do trust non-decentralized projects. I really have no sympathy with those who have lost money because supporting such a obvious system that is open to cheating is just stupid.

[anthonytcm]

The entire purpose of tether is redundant, change fiat into fiat coin. Like what? Oh you don`t want to abide by fiat laws so you call it something else?

The creation of Tether is not entirely redundant you see during the bear market for crypto traders (and maybe investors) it was a  means of safe haven for protecting your capital from incurring any more losses in the market that is why it is also called “stablecoin” because it is one of the few unaffected cryptocurrencies out their when the market is shedding blood. It may not act entirely on it's purpose but for me this was a useful alternative compared to cashing out your coins entirely out of the market.

And that's all perfectly fine, but hey, they shouldn't play being the US treasury and "print USD", they should back it up with actual USD somewhere and make it a transparent process, otherwise they'll get the book thrown at them, which is what is happening right now.

[TomArayaSlaya]

For those who need Tether then by all means use it but the way i see it if you want fiat sell your Crypto for it and stop findig blockchain alternative for it Is like just deceiving yourself with a blockchain dollar and that will disappoint and hurt you if care is not taken Stablecoins are just there to waste more of your time and get your money

[Endikadija]

https://cointelegraph.com/news/fractional-reserve-stablecoin-tether-only-74-backed-by-fiat-currency-say-lawyers

As part of an ongoing legal process involving the New York Attorney General,
Zoe Phillips of law firm Morgan Lewis said that at the time of writing,
74% of Tether’s reserves had USD and equivalent backing.

Which means by the time you read it, that 74% could be 50% or even zero.

Bitfinex CEO has been playing tether users for fractional reserve fools this entire time,
and using tether for his personal piggy bank.

Well at least you can know your money went to fund cocaine and hookers.  

Bitfinex CEO




SOON. The Mad Dash before the collapse.  

When tether was moving to the tron network and the company has made an announcement if the company can't back up all of tether with equally one dollar for one tether. this is a scam from the beginning. I used TUSD and it's much better than that scam coin.

[Erickan]

Tether is really a problem, it has been discussed a long time ago about whether or not $ 1 / 1USDT support. In addition, Tether was accused of being behind a pump of bitcoin prices in 2017. For those reasons, Tether was not always trusted by users.
Although there are many accusations but Tether is still in top 10 CMC , I don't understand why it could be so? I do not accuse Tether of fraud or fraud, because we still do not have proof of authenticity, but I will not hold Tether long, it is too dangerous.

[consideritdone]

why market not reacting no reaction? https://www.coingecko.com/en