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Bitcoin itself is currently undergoing something not completely dissimilar to a pump-and-dump. Because of the difficulty of transacting USD for cryptocurrency p

Bitcoin itself is currently undergoing something not completely dissimilar to a pump-and-dump. Because of the difficulty of transacting USD for cryptocurrency purposes, a pegged currency called “Tethers”, specifically USDT, is being used as a substitute. It's supposed to be backed 1:1 by USD reserves, but it's clear at this point that the amount of USD reserves do not match the number of USDT in circulation and they're just printing money to buy BTC. The markets using real USD are then matching the USDT price and this allows the printers to cash out. Once regulators strike, many investors will realise they have a lot of useless paper money (USDT) and suddenly much less valuable BTC. Or so many allege, at least: https://amycastor.com/2020/11/21/are-pixie-fairies-behind-bitcoins-latest-bubble/ https://amycastor.com/2020/11/21/are-pixie-fairies-behind-bi...

woah 6y ago
Tether definitely seems very fishy, but they've been around for a pretty long time. People were saying this exact thing in the 2017 bull market but then there was a savage bear market the next year (~10x BTC price drop) and Tether is still fine. What is the event that will reveal that the emperor has no clothes?
- deleted 6y ago
  [deleted]
- TazeTSchnitzel 6y ago
  The New York Attorney General is currently on Tether's case and its latest deadline is 15 January 2021 for Tether to produce documents, but that deadline may slip again…
- FireBeyond 6y ago
  For the longest time, Tether claimed a 1:1 backing. They referenced audits that didn't exist, and so forth. Finally, their own lawyer admitted in a court briefing that they had less than 74%. No-one has heard from their CEO or CFO in over a year. Next significant court date is next Friday, 1/15.
  - BillinghamJ 6y ago
    Must say, I'm surprised it's not more like 10%, or 1%
    - earthtolazlo 6y ago
      That was the number provided by Bitfinex’s lawyers at a time when there were about 20 billion fewer Tethers in existence. I’d be shocked if it was over 10%. But since they won’t do an audit, we’ll only find out after everything collapses.
boublepop 6y ago
Tether is interesting, and might be a ponzy scheme. But it’s not a pump-and-dump.

woah 6y ago

Tether definitely seems very fishy, but they've been around for a pretty long time. People were saying this exact thing in the 2017 bull market but then there was a savage bear market the next year (~10x BTC price drop) and Tether is still fine. What is the event that will reveal that the emperor has no clothes?

deleted 6y ago
[deleted]
TazeTSchnitzel 6y ago
The New York Attorney General is currently on Tether's case and its latest deadline is 15 January 2021 for Tether to produce documents, but that deadline may slip again…
FireBeyond 6y ago
For the longest time, Tether claimed a 1:1 backing. They referenced audits that didn't exist, and so forth. Finally, their own lawyer admitted in a court briefing that they had less than 74%. No-one has heard from their CEO or CFO in over a year. Next significant court date is next Friday, 1/15.
- BillinghamJ 6y ago
  Must say, I'm surprised it's not more like 10%, or 1%
  - earthtolazlo 6y ago
    That was the number provided by Bitfinex’s lawyers at a time when there were about 20 billion fewer Tethers in existence. I’d be shocked if it was over 10%. But since they won’t do an audit, we’ll only find out after everything collapses.

boublepop 6y ago

Tether is interesting, and might be a ponzy scheme. But it’s not a pump-and-dump.