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This "FUD" could be easily dismissed by showing a bank account statement containing these $814M. The fact that Bitfinex doesn't do that means they have somethin
by kbart 9y ago
This "FUD" could be easily dismissed by showing a bank account statement containing these $814M. The fact that Bitfinex doesn't do that means they have something to hide or are in serious trouble.
- brndnmtthws 9y agoNo, it's pretty normal for private companies not to share that kind of data.
- abritinthebay 9y agoNot in financial businesses it’s not.
- brndnmtthws 9y agoYou evidently have no idea. At a lot of places, that's the crown jewels, and would never be revealed publicly.
- moduspol 9y agoThey do claim they are audited regularly right on their transparency page [1]. Audits are meaningless for consumer confidence if they don't take place, or the results are not shared. [1] https://wallet.tether.to/transparency https://wallet.tether.to/transparency
- scurvy 9y agoEvery publicly traded bank discloses all of their assets each quarter. To claim holdings are the crown jewels is a bit much.
- kbart 9y agoLegally - yes, but when such company act as a semi-bank, costumers can reasonably expect some transparency, especially when rumors are going around.
- brndnmtthws 9y agoThey're under no obligation whatsoever.
- kbart 9y agoobligation != trust. I wouldn't trust private company that claims to back crypto currency 1-to-1 with USD, but doesn't back these claims with numbers in any way. The fact that they are not legally obligated to do so doesn't change that.
- brndnmtthws 9y agoWe're in agreement, but lack evidence is not evidence of wrongdoing.
- ceejayoz 9y agoIt's not proof, but "you just have to trust me" when talking about hundreds of millions of dollars is potential evidence of something shady.
- FireBeyond 9y agoAdd to which, "We have no obligation whatsoever to exchange your Tether for USD, and you have no right of redemption for this, either."
- alexasmyths 9y ago"They're under no obligation whatsoever." Then we can assume the money does not exist, and that it's an $800M fraud.
- _jal 9y agoJust so that I'm clear: - Skepticism about the tether reserves is FUD, - meaning that we should believe it is there. - But we cannot ask for proof of an easily verifiable claim that the money exists, because certainty that it exists is a trade secret. Is this an accurate reflection of your position?
- brndnmtthws 9y agoI'm merely pointing out that the majority of the fear surrounding this issue seems to originate from one person with an axe to grind.
- 659087 9y agoIn other words, "let's ignore the message and shoot the messenger"?
- mancerayder 9y agoBut there's a wider economic ecosystem at risk. By not sharing and proving that Tether is in fact really tethered, they're leading people to the conclusion that there's 800M US artificially pumped, artificially PRICED into some currencies. That has the effect of adding 800M of fakeness, which may not be a big deal given the market caps of these cryptos, but perhaps more importantly it has the effect of weakening faith in the crypto project.
- PeterisP 9y agoIt's normal for companies to not share that kind of data to everyone - however, in this case it's normal for a trusted (by public) auditor to publish that all this data has been shared to them and that they vouch that it's appropriate.