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This is nothing more than FUD designed to benefit a short position. The reason why exchanges like Binance and Bybit have their inflows from Tether... is because
by dannyw 6y ago
This is nothing more than FUD designed to benefit a short position. The reason why exchanges like Binance and Bybit have their inflows from Tether... is because (as the author explains) they only take Tether!
Why do they only take Tether? Because US banking is incredibly expensive and a regulatory nightmare.
Why do people use Tether exchanges, over Coinbase? Not just because of leverage, but also because many do not AML/KYC, especially if you only deal with crypto. A LOT of people in the crypto community don't like to pay taxes, and we've known this from day one.
Many crypto enthusiasts also boycott "regulated" exchanges like Coinbase, because they shut down accounts if you use it to gamble on a sportsbook, or whatever their surveillance doesn't like.
So it should not be a surprise that many people in the crypto community, me being one of them, actually prefer to use Tether and Tether exchanges.
- ur-whale 6y agoThe "all the banks in <random caribeean island> only hold a tiny fraction of the cash Tether claims to own" argument is a fairly solid one. Care to deconstruct it?
- anfogoat 6y ago> Why do people use Tether exchanges, over Coinbase? Not just because of leverage, but also because many do not AML/KYC, especially if you only deal with crypto. A LOT of people in the crypto community don't like to pay taxes, and we've known this from day one. I don't know if evading taxes is the main reason but it is definitely not the only one. Going through KYC is an embarrassing and demeaning experience, unless you like prancing in front of a camera. It is also close to equivalent to just plastering your picture and ID all over the public Internet as that is exactly where they'll end up when your exchange of choice is eventually broken into. Just another gift from the anointed ones.
- doggosphere 6y agoHow about Tether's refusal to do an open audit of its books? Or when they had some funds seized and loaned funds between Bitfinex and Tether, breaking the 1:1 peg?