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People don't really trust them, but it's not like you have a choice if you want to be in crypto. It's more of a calculated risk that you have to take. The expl
by ht85 9y ago
People don't really trust them, but it's not like you have a choice if you want to be in crypto. It's more of a calculated risk that you have to take.
The explanation behind them putting off the audit might have nothing to do with tether. It could be concerns about what an investigation could uncover in their creative bookkeeping, being an incredibly profitable, offshore, unregulated company and all.
In the end, the whole situation boils down to
1) Did people really wire them the equivalent of the entire tether market cap?
2) Did they use the money?
I don't think it's unrealistic that ~1.5B has entered the market in the last few months.
I also don't think it's impossible they didn't need to touch that money, given that they seem to pocket 8 figures in fees daily. That's not even counting all the other things they can legally do as an unregulated exchange, like front-running, liquidation fishing with unlimited assets, etc.
- millstone 9y agoStupid question: Why don't you have a choice if you want to be in crypto? People were exchanging bitcoin before tether was created; what changed?
- dreit1 9y agoThe most popular exchanges these days are crypto only. Thus if your a trader that wants to trade against the dollar, you have to do USDT, not the actual dollar
- harryh 9y agoDoesn't this mean that all the market values on crypto only exchanges are kind of suspect? Because if you eventually want to get out of crypto and into dollars (to, you know, buy stuff in the real world) there is a good chance you won't be able to because no one is actually there willing to give you dollars for tethers?
- deleted 9y ago[deleted]
- dreit1 9y agoBut they will give you dollars for bitcoin or ether. However, I agree, I never trade tether because that is the last bag you want to hold if the crypto market collapses
- psyc 9y agoWhile I'm mindful that all of this is always one fateful day away from collapsing, at the moment it's not a problem. A number of exchanges will trade tethers for any of the major coins (BTC, ETH, LTC) and any major exchange will give you dollars for those, at least on days when withdrawals are functioning.
- nimchimpsky 9y agoThere are choices. But if you do large amounts to the largest exchanges, this is the default. You wire money in, you get tether in your account. Which can then be used to buy other coins. Tbh I don't get the hate for tether.
- ameliaquining 9y agoThe U.S. government started enforcing AML/KYC laws against crypto-to-fiat exchanges.
- Hermel 9y ago> That's not even counting all the other things they can legally do as an unregulated exchange, like front-running, liquidation fishing with unlimited assets, etc. Unregulated does not mean that they can ignore the law. Fraud is illegal either way. In fact, most businesses used to be unregulated and just had to follow the same laws as everyone else. That should be the natural state.