As one of the first people to call out Tether and ask that its price reflect the counterparty risk, I welcome this move.
USDT isn't USD. The price should float. If you hold USDT, be prepared for a drop if the backing dollars are rendered inaccessible.
You left out the part where Tether is now offering the 1:1 conversion themselves via Deltec. I'm sure you'll find some reason why doing redemptions directly is somehow worse than through Bitfinex, even though you've been making the exact opposite argument for the past year.
I haven’t been making the opposite argument. I’ve been arguing that tether is not what it proclaims to be, a “backed” one to one “stablecoin”. Supposedly a truly independent from Bitfinex company controlled the funds. They promised audits. They said you could redeem tethers on their website. None of this was true.
Now they let the currency float on Bitfinex and offer withdrawals supposedly to “verified” customers, for a fee, with a minimum conversion amount of $100k.
What percentage of tether holders has over $100k, and of those how many are going to be able to jump through the hoops to get it? I venture a guess it’s a small percentage.
What are all of these behaviors, when combined with Bitfinex’s practices? They are consistent with a shady company that has set up a fake stable coin that allows them to manipulate the market, and extract dollars in as many ways as they can. The slow walking of withdrawals is consistent with an insolvent exchange.
Letting the peg float on Bitfinex, while allowing very limited withdrawals on Tether allows them to maintain the slimmest fiction that Tether indeed has only issued tethers on receipt of dollars. It gets Bitfinex off the awkward hook where they allegedly were redeeming tethers one to one. This is a bait and switch, shell game, a house of cards, call it what you want.
Note that I don’t say it proves this, but it is highly consistent. If Bitfinex was operating smoothly and the tether website wallet was working and allowing easy conversion and withdrawals of dollars for the last two years, then these endless red flags would diminish if not disappear.
As I’ve said, if it emerges that all was totally as it should be, this was all just FUD, I have no problem saying I was wrong. It don’t make no difference to me.
I’m just annoyed by the constant misinformation, deception, irrational thinking that plagues our modern society. (Not that I think it was better in the past, it’s just now a whole new system of thieving and mind control had emerged, decentralized and enabled by ubiquitous network connections. )
Personally, I have followed the development of the cryptocoin space because I think it’s interesting on a number of levels. Since I never got around to buying any bitcoin, I’ve had a few spells of regret that I “missed out.” Looking at it critically, it was clear it was a speculative bubble, and not much more. But it was a new speculative vehicle, a pure digital token, secured by cryptography and the POW structure.
Now I wouldn’t say I have JOMO, but at least ROMO (relief of missing out). But it’s been a test of my ability to perceive reality as accurately as I can.
My frustration and annoyance at the constant hype and shilling is that it’s the opposite. It hijacks critical thinking. On balance, I think this leads to bad outcomes for the world.
> What percentage of tether holders has over $100k, and of those how many are going to be able to jump through the hoops to get it?
No they just sell it on the trading pair.
> As I’ve said, if it emerges that all was totally as it should be, this was all just FUD, I have no problem saying I was wrong. It don’t make no difference to me.
Great. Then why don't you do us all a favor and shut the fuck up until theirs an indictment.
My understanding is: tether is doing the conversion to USD 1:1. However, Tether is also going to trade freely.
If someone deposits tether into Bitfinex, Bitfinex can sell that tether on the open market and put the $1 (or whatever they get) in that persons account to cover the 1:1 conversion.
That means they never have to touch the "dollars backing tether", they can just keep them.
This a Tether ICO, all the Tether out there is going to trade at whatever it is, without any backing. Which means Tether can keep any backing they have if the Tether ICO covers it. That's what it sounds like, anyway, I'm happy to hear a differing opinion. It seems like they've been trying to work out their "Tether is backed by money" problem and this is a way out of it, a Tether ICO.
Yeah, that’s a good point, and it might explain why the tether price has stayed close to the peg.
The difference between tether and the other ICOs is that it was started with a different promise. It’s a huge fraud, papered over by the thinnest of legal fictions.
Tether is a factor, but it's not the only reason. There's lots of reasons it went somewhere. The only reason it crashed at all is because it couldn't scale. People saw 30$ transaction fees and were like wtf?
Are you aware a guy not predicting the future doesn't mean every technological advancement is worldshattering or even relevant?
How important are QR codes to your life? Those, too, were going to revolutionize supply chains.
Whose to say they won’t? That is unless something better comes along. QR codes are just improved bar codes, and they will only be beneficial to the degree that they improve efficiently from the bar code. They may end up being incredibly useful for supply chains using blockchain which could be a great use case for them, unless something like NFC ends up becoming cheaper to use.
It’s about efficiency. Anything that can allow you to achieve more units of output per unit of input will increase the amount of wealth you can create. If blockchain/bitcoin can do that (increase efficiency) then it will have been a success. I believe it can and will increase efficiency.
The thing is, blockchains don't solve the supply chain problem either. The issue with supply chain database integrity isn't retroactive changes. It's initial malicious inputs, which blockchain doesn't prevent.
Buttcoin sees a conspiracy theory yet again. I thought usdt couldn't be redeemed at all? Oh wait, now tether is bad because automatic conversions on bfx are stopped because redemptions 'suck them dry'. No matter what happens tether bad.
Tether has lately become a big PR problem and probably is barely profitable if at all, so trying to separate bfx from tether isn't surprising. I'm sure they would happily dump all problems with usd deposits and withdrawals on someone else's stablecoin and concentrate just on the exchange itself.
The argument was never that tether could not be redeemed. In small amounts it can, which is why they are limiting redemptions to customers above $100k. All /r/Buttcoin has observed is that there is no way that there is 1.8 billion dollars sitting there that can back all the Tether tokens floating around in the market.
Tether is hugely profitable. When they float tether, it is exactly the same as a Tether ICO. Tether just becomes another shitcoin.
If they can sell Tether on the open market for $1 each or anything near it, then they can sell it all the tether everyone has in deposits for USD and credit everyone's account 1:1 with those USD.
Then they can just keep all the money "backing the tether" for themselves. The untethering is a Tether ICO.
Hmm, I originally thought that there would be a moment when it would be revealed that tether is not 1:1 with USD, and then bitfinex/tether exchanges/cryptocurrencies would implode. Given the lack of crash after this announcement I'm now wondering if it's possible that bitfinex will reveal that tether isn't 1:1 with USD and butters will just carry on like nothing's happened.
This is Bitfinex removing a huge backstop for Tether. The Kraken market was mostly just for show. The real backstops were Tether exchanges accepting USDT at par.
That combined with their 3% tariff means that 1 Tether = 1 USD is dead.
Once Bitfinex removes it's 1:1 backstop, all of them will follow in short order. Looks like Binance is already moving in that direction with their USD(s) thing.
They have to abandon the peg otherwise arbs like that guy that bought 5M tether in order to redeem at par at BFX will suck them dry. Obviously if they had 1 USD in the bank for every 1 Tether, such redemptions wouldn't be a problem.
This is huge. Bitfinex is likely anticipating the closure of Kraken's USDT trading, and opening its own trading in the BVI where it would be much more difficult for the SEC or DOJ to reach. Remember that Kraken was subpoenaed in the DOJ's price manipulation investigation. One quick look at their USDT/USD chart shows that the price is being manipulated with bots, and almost certainly trading would be shut down if indictments were to drop. By bringing trading in-house, they can protect their scam when others might bail. We are definitely on the brink of more disastrous news for the crypto world.
Apparently the peg is being moved back to Tether itself but only for customers with over $100,000 lol