4 ms·
I think bitfinex is holding the peg on where you can see it (kraken). Nobody else can buy /sell tether. Even a guy saying tether probably has the money on twitt
by conanbatt 9y ago
I think bitfinex is holding the peg on where you can see it (kraken). Nobody else can buy /sell tether. Even a guy saying tether probably has the money on twitter was only willing to buy at 45% premium.
Now, bitfinex looks super solvent though, so its not like the exchange can dissolve like mtgox.
- DennisP 9y agoHow is Bitfinex involved with Kraken?
- simias 9y agoI think the idea is that Bitfinex might have enough money to prop USDT up as long as the trading volume is low enough. Just buy on kraken when the peg starts to break. Similarly they can probably afford to actually exchange the USDT for USD up to a certain limit, the question is how deep their pockets are. Do they actually have the full amount in their accounts? $1 billion? 100 millions? 10 millions? We'll know that for sure when there's an actual audit or when there's a bank run and they collapse because they don't have the money to pay for the USDTs.
- tim333 9y agoI don't think Bitfinex is directly involved with Kraken. Bitfinex is a shady offshore operation [1] and Kraken is a fully US regulated company with their main office in SF. Kraken is however about the only place you can actually trade USDT for real USD. Or indeed short the things. [1] >[people] have attempted to visit the company’s registered address in Hong Kong only to find an accounting company which served as a registration agent for the company >most of the executive team is distributed across the globe.https://medium.com/@cadammitchell/bitfinex-has-a-true-working-office-in-taiwan-a7ab8c55f7c5 https://medium.com/@cadammitchell/bitfinex-has-a-true-workin...