6 ms·

You can’t redeem Tether — that’s a core part of the fraud, they have “banking issues” and had them for years. You can sell it on an exchange but the Tether orga

You can’t redeem Tether — that’s a core part of the fraud, they have “banking issues” and had them for years. You can sell it on an exchange but the Tether organisation have prevented any redemption of USD from USDT for years. Anybody turning USDT into USD is selling their USDT.

tim333 6y ago
Though when you sell your USDT for euro or whatever on Kraken say, the tether org must step in and buy to keep the price at US$1. So they effectively redem if not directly.
- griffinheart 6y ago
  When is tether org involved in this? From your example the only thing that happened is that now you hold x euros and Kraken holds x amount of USDT. Unless Kraken goes to Tether org and asks "hey I got these USDTs, please give me the USD" no redemption has occurred. That some people can in effect transact USDT for fiat via other mechanisms (like your example above) says nothing about Tether org backing or reserves. Until you go to Tether org with your USDT's and ask them for USD you won't know if they have the reserves.
  - tim333 6y ago
    The reason tether stays at $1 is because the tether org or their delegates buy or sell to keep it there. They have to or the whole thing would become untethered as it were.
seibelj 6y ago
Plenty of companies redeem USDT for USD. I myself worked at a company that redeemed billions of dollars. The FUD on HN is approaching delusional levels.
- xur17 6y ago
  https://tether.to/faqs/ https://tether.to/faqs/ > Unfortunately, Tether has decided to stop serving U.S. individual and corporate customers altogether. As of January 1, 2018, no issuance or redeeming services will be available to these users. Exceptions to these provisions may be made by Tether, in its sole discretion, for entities that are: Established or organized outside of the United States or its territorial or insular possessions; and, Eligible Contract Participants pursuant to U.S. law. > An Eligible Contract Participant includes a corporation that has total assets exceeding $10,000,000 and is incorporated in a jurisdiction outside of the United States or its territories or insular possessions. This will be the principal basis upon which we will continue to do business with selected U.S. persons. Basically, it looks like they only provide on and off ramps for large clients outside the US. Given their history, I am betting they might not want to reveal where they store their assets, and don't want to deal with US regulators (but not sure this is working).
  - seibelj 6y ago
    Yes, I worked at a company that had an entity outside the US that minted and redeemed tethers. This is how it works.
  - whimsicalism 6y ago
    So as source for the claim that you "can't redeem tether", you are linking to something that says you can redeem tether?
    - xur17 6y ago
      When did I say I was providing a source for not being able to redeem tether? I'm just linking to information that I found useful when forming an opinion on the matter.
    - FabHK 6y ago
      > something that says you can redeem tether Tether, in its sole discretion, may choose to redeem tether, as long as you're a corporation with over 10m USDT incorporated outside the US. I'd say that's not an ironclad guarantee that you can redeem tether.
gruez 6y ago
So you can't trade USDT for USD at all (eg. third party exchange trades, or withdrawing from an USDT exchange directly), or is it only that you can't trade USDT for USD by going through Tether Limited?

tim333 6y ago

Though when you sell your USDT for euro or whatever on Kraken say, the tether org must step in and buy to keep the price at US$1. So they effectively redem if not directly.

griffinheart 6y ago
When is tether org involved in this? From your example the only thing that happened is that now you hold x euros and Kraken holds x amount of USDT. Unless Kraken goes to Tether org and asks "hey I got these USDTs, please give me the USD" no redemption has occurred. That some people can in effect transact USDT for fiat via other mechanisms (like your example above) says nothing about Tether org backing or reserves. Until you go to Tether org with your USDT's and ask them for USD you won't know if they have the reserves.
- tim333 6y ago
  The reason tether stays at $1 is because the tether org or their delegates buy or sell to keep it there. They have to or the whole thing would become untethered as it were.

seibelj 6y ago

Plenty of companies redeem USDT for USD. I myself worked at a company that redeemed billions of dollars. The FUD on HN is approaching delusional levels.

xur17 6y ago
https://tether.to/faqs/ https://tether.to/faqs/ > Unfortunately, Tether has decided to stop serving U.S. individual and corporate customers altogether. As of January 1, 2018, no issuance or redeeming services will be available to these users. Exceptions to these provisions may be made by Tether, in its sole discretion, for entities that are: Established or organized outside of the United States or its territorial or insular possessions; and, Eligible Contract Participants pursuant to U.S. law. > An Eligible Contract Participant includes a corporation that has total assets exceeding $10,000,000 and is incorporated in a jurisdiction outside of the United States or its territories or insular possessions. This will be the principal basis upon which we will continue to do business with selected U.S. persons. Basically, it looks like they only provide on and off ramps for large clients outside the US. Given their history, I am betting they might not want to reveal where they store their assets, and don't want to deal with US regulators (but not sure this is working).
- seibelj 6y ago
  Yes, I worked at a company that had an entity outside the US that minted and redeemed tethers. This is how it works.
- whimsicalism 6y ago
  So as source for the claim that you "can't redeem tether", you are linking to something that says you can redeem tether?
  - xur17 6y ago
    When did I say I was providing a source for not being able to redeem tether? I'm just linking to information that I found useful when forming an opinion on the matter.
  - FabHK 6y ago
    > something that says you can redeem tether Tether, in its sole discretion, may choose to redeem tether, as long as you're a corporation with over 10m USDT incorporated outside the US. I'd say that's not an ironclad guarantee that you can redeem tether.

gruez 6y ago

So you can't trade USDT for USD at all (eg. third party exchange trades, or withdrawing from an USDT exchange directly), or is it only that you can't trade USDT for USD by going through Tether Limited?