The world's most used crypto, Tether explained

[RedDuke]

AbbotAle,

what you say sounds great. That being said, BitFinex refused to be audited and fired all of its auditors. Frauds can run for a long time. Mad off is a good example. The fact is no one has any assurance, as of right now, that Tether is backed by anything.

if it looks like a duck and walks like a duck .....

Once the reality will set it (if true of
Course) that tether is a fraud, the market will collapse in a way no one would have imagined, and this will be a death of current crypto world.

block chain is here to stay of course.

 

[AbbotAle]

That is funny and remind me the blinded SEC lady from The Big Short. NYAG doesn't even have jurisdiction over the Bahamas, where Tether is banked. As long as you avoid using American costumers, nobody is watching...

FinCEN is watching Tether very closely for one simple reason, from tether's website -

Additionally, Tether monitors for and assesses suspicious or sanctionable transactions under applicable AML, Anti-Corruption, and Economic Sanctions Laws, as well as undertakes mandatory reporting to FinCEN, OFAC, FIA.

Pek, like I've said before, you're hardly doing any research but what research you are doing seems like you're getting your news/views from Twitter handles that have about 77 followers.

If you or anyone else thinks a non-American corporation doing billions of USD worth of business (and holds USD) is not speaking with the Americans, and basically keeping them happy/not pissing them off, then you're mad as a hatter.

 

[AbbotAle]

that tether is a fraud, the market will collapse in a way no one would have imagined, and this will be a death of current crypto world.

You seem to have imagined it though

Anyway, 4+ years and counting for the tether implosion will be the final end of Bitcoin.

Meanwhile both tether and Bitcoin, over that 4+ year period, go from strength to strength as the network effects get larger and larger.

PS. I'm off now, be back in 30 days, unless of course this Friday is the death of Crypto forever. Then you can have a good ol' laugh at my expense...

 

[RedDuke]

You seem to have imagined it though

Anyway, 4+ years and counting for the tether implosion will be the final end of Bitcoin.

Meanwhile both tether and Bitcoin, over that 4+ year period, go from strength to strength as the network effects get larger and larger.

PS. I'm off now, be back in 30 days, unless of course this Friday is the death of Crypto forever. Then you can have a good ol' laugh at my expense...

I will never laugh at anyone loosing money. I know how it feels. Been there.

 

[Pekelo]

, from tether's website -

Additionally, Tether monitors for and assesses suspicious or sanctionable transactions
.

You are joking, right? It is like quoting Madoff about the viability of his long term results.

Unless it is proven by a reliable 3rd party, whatever any crypto CEO, owner says has to be taken with a boulder of salt.

 

[Pekelo]

1) No CEO (of a private company) is at liberties to tell the world how his business operates.

Again, you are shitting me, right? Hey Mr. Charles Ponzi, would you mind explaining this Italian stamp arbitrage one more time before I invest a shitton of money in your new business adventure?

If they want people TRUSTING them, they better fucking be able to explain how their business operates.

2) Did the CEO really argue against the use of tether? If so please post a link because logic implies no company tells its potential market not to use its products. Why be in business in the first place?

Post #10. Paolo's answer

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Now I have to agree, a backed stable coin has its place in crypto world. Not as an on-ramp extra crypto (what tether originally claimed) but as a safe place in wild volatility times. But why use a most likely shady company with very opaque business practice or even self acknowledged non-backed nature, when there are others who can actually be trusted???

Sure in the beginning there was only Tether, I got it. But now we have more and better ones, just switch to the reliable ones.

--------------------

Also I couldn't fail to notice you didn't actually argue against any of the brought up points in the first 10 posts, you just used generic, usually logically fallicious arguments. Like people still use it? How does that explain their clean business practice? Well, it obviously doesn't.

 

[Pekelo]

Because that extra step is a massive money making step that's why.

For Tether/Bitfinex, for sure. But explain it to me (and mind you, the CEO or whoever gave that interview agrees with me) why let's say if I am a HF manager and want to buy 100 MM worth of Bitcoin, why don't I just wire the money to Bitfinex (well, they do have banking problems) and they would buy immediately BTC? Why I as a costumer would want the extra step?

Sure, if someone is already in BTC and they want to quickly cash out then come back later, a stable coin makes sense. But that holding is usually temporary for a relative short time. Not to mention Tether was supposed to burn the used coins, according to the original set up/explanation. Yet very minimal tethers got burnt.

Also, if I can choose among many stabe coins, tether would be one of the last ones. Just ask John here, who has crypto investments and avoids Tether like the plague.

And no, I haven't just started criticizing Tether a few days ago. Look up my posts, it was probably 3 years ago when I first mentioned it in a negative light.

 

[AbbotAle]

For Tether/Bitfinex, for sure. But explain it to me (and mind you, the CEO or whoever gave that interview agrees with me) why let's say if I am a HF manager and want to buy 100 MM worth of Bitcoin, why don't I just wire the money to Bitfinex (well, they do have banking problems) and they would buy immediately BTC? Why I as a costumer would want the extra step?

I've already confirmed this.

The HF manager would wire 100m to the broker, use that fiat to buy BTC and then (hopefully) transfer out to their own cold storage. This assumes they just want to own BTC.

If you look on Bitfinex there are 2 trading quotes for BTC, BTC/USD and BTC/USDt.

However, another HF manager doesn't want to own BTC per se, they want to do all sorts of trading within the crypto currency eco system. So they'd wire 100m in fiat, use that to buy tether and then use tether for their trading operations, arbs, HFT, market-making, derivative strategies and so on. The great thing about tether for them is they can then quickly use/transfer it to other exchanges. Fiat as we both know can take days, try setting up an arb operation wearing that ball and chain.

Therefore as I've mentioned before, the one's who take the extra step (to buy tether) view it as a potential money making step so they want to take it. Conversly, the one's who don't need to take that extra step, because it would be cost them money (via costs), don't take it.

 

[AbbotAle]

If they want people TRUSTING them, they better fucking be able to explain how their business operates.

Yet the market disagrees with you hence the massive rise in tethers use and market cap over the last several years.

But you know best Pek.

You tell them!

PS. Shorting tether seems to me to have a great risk-reward ratio. Upside capped not too much over $1.00, downside potentially $0.50+. Sp why not back up your theories with some skin in the game?

 

[AbbotAle]

But why use a most likely shady company with very opaque business practice or even self acknowledged non-backed nature, when there are others who can actually be trusted???

Sure in the beginning there was only Tether, I got it. But now we have more and better ones, just switch to the reliable ones.

Within a free market, with lots of competing and similar products, the majority of the market will use the best product available, and that's clearly tether otherwise they'd switch.

So the market clearly doesn't share your view.