Judge Orders Bitfinex to Turn Over Tether Loan Documents (Again)

[Karartma1]

Exactly, the greed of traders will win out even if/when the truth will out. We all know that if this bubble bursts there is no going back. We can only expect more control coming from the regulators (who are already pushing their agenda like hell) and a possible crypto winter come back.
People will cry for their money and this world will never be the same again. If you ask me, shame on them. Sorry.

It's not like there haven't been enough warnings.  There have been a few topics where people have highlighted the problems in clear detail:

https://bitcointalk.org/index.php?topic=1881199.msg18693313#msg18693313
https://bitcointalk.org/index.php?topic=3202211.msg33233707#msg33233707
https://bitcointalk.org/index.php?topic=5050929.msg46924908#msg46924908
https://bitcointalk.org/index.php?topic=5120673.msg50162473#msg50162473

BitMEX also have a fairly comprehensive write-up about it:

https://blog.bitmex.com/tether/


I can't tell if people simply haven't noticed and we're not shouting loudly enough, or they're just too busy trying to make a buck to even care.  If it's the former, then maybe we have a chance to educate people and limit the damage.  If it's the latter, then all we can do is await the inevitable and hope that it dies before it gets too big.

Remarkable recap! Nothing to add really! It's going to be like you said, at some point the elephant in the room will destroy the room itself and those two scenarios you're envisaging are the most likely ones. I know which side I want to be on if anything bad happens (I am out of merit, but I'll keep some for you to merit this post). Thanks.

[noorammak]

If Tether is accused of cheating again, this could be a shock, the market could be hit hard by bad news like this one. Tether they have printed too much USDT at a rate of 1 billion dollars a month in the last 5 months. Assuming they used USDT to buy altcoins and bitcoins at a good price and now they want to sell them to use the money to prove their liquidity, it is a disaster.

LAUGH OUT LOUD. It seems your theory is correct, the market is bleeding. I hope Tether will pass the audit and the uptrend of the market returns. The fall of Tether will have many other negative effects. We have seen a bearish trend in this market for too long.

[DoublerHunter]

If Tether is accused of cheating again, this could be a shock, the market could be hit hard by bad news like this one. Tether they have printed too much USDT at a rate of 1 billion dollars a month in the last 5 months. Assuming they used USDT to buy altcoins and bitcoins at a good price and now they want to sell them to use the money to prove their liquidity, it is a disaster.

LAUGH OUT LOUD. It seems your theory is correct, the market is bleeding. I hope Tether will pass the audit and the uptrend of the market returns. The fall of Tether will have many other negative effects. We have seen a bearish trend in this market for too long.

^ The truth is they always have manipulation on this stable coin, they can't provide proper liquidity because there is no exact total supply.
Teaching an old dog with new tricks really is hard. I still imagine how the Attorneys reacted when they heard that they will be handling crypto-
currency clients. Probably the hearing was lenghty because of the curiousity of the attorneys.
But going back to the main issue, Tether and Bitfinex will soon resolve this conflict, I can tell. Its just that, it would probably be the best for us to do our part instead by not spending all of our finances with exhanges.

[bbc.reporter]

I'm not much of a speculator, so even if it meant some turmoil in the short term, I think it's better the poison is bled out sooner rather than later.

Think of it this way, what would cause a bigger loss of faith in the markets?  Recognising it for what it is and allowing it to collapse now at $14 billion of mirage fakery, or pretending it's not a problem and waiting until it balloons to $140 billion and then blows up in our faces?  The longer we allow the charade go on, the bigger the fallout will be.

However, you do not think that the tether rug pull will not cause the cryptospace's biggest crisis that might take years for recovery? It might not only be a short term turmoil.

If anyone has any viable alternatives, I'm all ears.  They're going to keep printing more from nothing.  New traders are probably being suckered in daily.  It's only going to get bigger.  Is there a way to collapse it gradually without causing an avalanche that brings the entire mountain down on us?

The only thing I can think of is some sort of educational campaign to highlight the dangers.  But I suspect the greed of traders will win out, just as it's been doing all along.  They're not going to listen to reason.

Why are you finding fault on the traders? The fault is with iFinex and Tether for issuing USDT under questionable backing practices.

I reckon the exchanges should slowly replace USDT with USDC and other 100% backed stablecoins.

[DooMAD]

If anyone has any viable alternatives, I'm all ears.  They're going to keep printing more from nothing.  New traders are probably being suckered in daily.  It's only going to get bigger.  Is there a way to collapse it gradually without causing an avalanche that brings the entire mountain down on us?

The only thing I can think of is some sort of educational campaign to highlight the dangers.  But I suspect the greed of traders will win out, just as it's been doing all along.  They're not going to listen to reason.

Why are you finding fault on the traders? The fault is with iFinex and Tether for issuing USDT under questionable backing practices.

I reckon the exchanges should slowly replace USDT with USDC and other 100% backed stablecoins.

I'm not saying all traders are to blame.  Some of them may be genuinely unaware of the suspicious and evasive behaviour that Tether/Bitfinex are displaying.  However, if traders have seen the warnings and choose to ignore them, they're equally culpable if/when it blows up in their faces and they lose everything.