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Tether announcement on their own website mentions their Taiwan banks have frozen all international wire transfer since April 18: https://tether.to/announcement/
by ActsJuvenile 9y ago
Tether announcement on their own website mentions their Taiwan banks have frozen all international wire transfer since April 18: https://tether.to/announcement/ https://tether.to/announcement/
Tether has printed $600 million worth of tokens since, so either:
1) Local Taiwanese have deposited $600 million to buy Bitcoins through domestic wires, OR
2) Tether is lying and printing tokens out of thin air.
Place your bets gentlemen.
- iamthirsty 9y ago> Tether is lying and printing tokens out of thin air. $600 million bet — literally.
- repomies691 9y agoThey can also peg the value using BTC. Basically they just buy using their dollars/fiat some BTC, deposit it to exchanges, and then using some simple bot beg the value of the USDT to USD with bid orders. And vice versa, they can have some USDT on exchanges and have ask orders so that people can buy USDT using BTC. If there are more buys than sells, then they withdraw the BTC and sell it for dollars/fiat. They don't need to do that on that many exchanges to have effective peg to USD. However they of course still need traditional bank accounts, and they need to trade the BTC on OTC markets or somewhere else.
- darawk 9y agoIt's perfectly reasonable to assume $600 million has flown in via Taiwan. Note that that doesn't mean that local Taiwanese have personally bought $600 million. Tether creates an arbitrage opportunity. If you have a Taiwanese bank account, whenever Tether gets out of sync, to say, 0.99, you can simply arbitrage that away and make a risk-free profit. That is what is happening. The demand isn't coming from Taiwan per se, it's coming from arbitrageurs (who either are Taiwanese, or are using someone who has a Taiwanese bank account).
- ActsJuvenile 9y agoNo one is going to deposit 600 mill in a hacked exchange via Tether crypto-Hawala using Taiwanese shell bank accounts. People with real money would instead wire the funds to Gemini or ItBit or even a terribly managed company like Coinbase. KISS
- repomies691 9y agoYou sound like you are living in the US, and everything is simple there and works as described. Which is probably true for you, as I understand those are exchanges catered towards US customers. However the mistake is that you assume that the rest of the world (majority) works the same way.
- ryanlol 9y agoSure “No one”, I don’t think the same necessarily holds for many.
- mancerayder 9y agoWhat's wrong with Coinbase? (I ask as a naive fool with a bit of money stored there).
- MrRadar 9y agoMostly that if anything goes wrong their support tends to be incredibly unresponsive. Also make sure you're not using SMS-based 2-factor authentication with them since there's a long history of people getting their phone numbers stolen and then their Coinbase accounts drained within minutes.
- ambicapter 9y agoWell, thank god their two-factor has always failed to setup for me.
- daxorid 9y ago> tends to be incredibly unresponsive Correction, there is no support. I have a bit of money permanently locked in a coinbase account because their support does not reply at all. At some point I will just have to convert it all to BTC and send it elsewhere. Caveat Emptor.
- matthewrudy 9y agoI once wired $30k USD from my UK to Taiwan bank account. It worked fine, but had to go into the bank in person with ID to get the funds approved. Not sure what it'd be like if I moved $100ks.
- nradov 9y ago* risk-free (except for counterparty risk)
- elif 9y agoTheir curious verbiage makes me think it's not USD. They say they have backing "assets" my guess is they mean BTC, which conveniently gives them more "value" the more they print.