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I'm not so sure anyone should follow this considering the recent shens over bitfinex and tether. Tether is supposedly tied directly to USD. Their website says
by itodd 9y ago
I'm not so sure anyone should follow this considering the recent shens over bitfinex and tether.
Tether is supposedly tied directly to USD. Their website says as much and claims transparency through audits. There hasn't been a single audit that has been independently verified.
Right now there have been nearly [800m tethers minted](http://omnichest.info/lookupsp.aspx?sp=31 http://omnichest.info/lookupsp.aspx?sp=31). They are minting them at an alarming rate as seen [here](http://omnichest.info/lookupadd.aspx?address=3MbYQMMmSkC3AgWkj9FMo5LsPTW1zBTwXL http://omnichest.info/lookupadd.aspx?address=3MbYQMMmSkC3AgW...).
This is of course circumstantial. I just thought I'd share as I'm stepping back from the markets as a result. @bitfinexed on Twitter seems to be the loudest voice on this topic.
- jaaames 9y agoThis. There is likely very little USD in any of the major exchanges, they are all almost certainly running a fractional reserve given recent price hikes. When the Tether nonsense implodes there'll be a bank run on all exchanges and major liquidity crunch. There's basically no wait to safely profit from this other than being out of the market.
- panarky 9y ago> they are all almost certainly running a fractional reserve given recent price hikes Agreed that a lot of exchanges are non-transparent, can't tell if they're stealing or losing customer funds. But this is unrelated to "recent price hikes". A higher exchange rate doesn't cause fractional reserve.