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So one of the items that keeps coming back to awareness is the potential implications of the Tether fraud. For those few that haven't heard of this by now, Bit
by mancerayder 9y ago
So one of the items that keeps coming back to awareness is the potential implications of the Tether fraud. For those few that haven't heard of this by now, Bitfinex is tied closely structurally (in terms of management and ownership) to the company that created Tether, the altcoin that claims to be backed in a 1:1 basis with a USD.
Well, there've been mysterious USDT transactions, in regular intervals, that suggest that there's tens of millions of Tether being pumped into Bitfinex on a regular basis, which of course can be converted into BTC (and other coins). However, no one thinks it's likely due to the soured reputation of Bitfinex (their big hack, their inability to do business with a U.S. bank, among other things) that this is REAL USD being pumped into this suspicious company with ill-reputed owners. This has been mentioned on Bloomberg and other mainstream publications.
So (if this is all true) what in the world will it mean reputationally that people have been pouring 800M of counterfeit coins into Bitcoin, and what does it mean economically?
I can't wrap my head around that second question.
[edit: updated last sentence of p2 for clarity)