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So if I understand this correctly, you can go to one of these pyramid scheme exchanges, tank up on highly leveraged tethers, and then go sell them on Kraken. Do

by PaulAJ 6y ago

So if I understand this correctly, you can go to one of these pyramid scheme exchanges, tank up on highly leveraged tethers, and then go sell them on Kraken. Do this often enough and you will drain the resources of the pyramid scheme, causing it to collapse. So you make a profit and provide a social good all on one smooth move. Have I got that right?

Erlich_Bachman 6y ago
How exactly do you plan to make a profit in this scenario?
- PaulAJ 6y ago
  Well, if I understand the OP correctly, it sounds like tethers are basically being printed and sold cheap in return for real money, so lots of people think they have a profit because they have more tethers than the dollars they started with. So if you can get in to that situation and then quickly sell the tethers before the whole thing collapses then you should be in the money. OTOH if that isn't possible then the allegation that this whole thing is a pyramid scheme fails.
  - Erlich_Bachman 6y ago
    > sold cheap Where? Find a place that consistently sells tether cheap. If anything, the lack of this place is a sign of poor research base for the original article. They mention that some exchanges give tether "prises" sometimes, on some occasions, to a select number of users. I don't see how that is so bad, and neither do I see how you could consistently profit from that. Those incentives are likely to be once per user, or once per referred customer, etc. There are likely protections in the form of "you have to trade for this much in order to realize the total prise amount". I don't see how this is any different from bonuses that many online casinos give out, and no one takes that as a sign that a given casino that does this is insolvent.
    - azeirah 6y ago
      Good point, for those tethers to have that big an influence on the market, they need to get into the hands of real people buying tether with real money somehow. According to the article it looks like this 1. Person buys btc with usd on coinbase or equivalent 2. Moves btc to shady exchange with tether promotions Those promotions need to be _huge_ in for those newly minted tethers to get into the hands of real people trading. I looked at the site with promotions linked by the article, and the front page features a couple of missions that give 50 USDT total for doing things like "join our telegram group", "set up a notification on our app".
leppr 6y ago
You can do this indeed but that'll cost you money as USDT is valued slightly below 1 USD, and you will incur slippage the larger your amount is. The best way to withdraw large amounts of Tether's to USD is through their platform itself, for a fixed ~$1000 fee.

by PaulAJ 6y ago

Erlich_Bachman 6y ago

How exactly do you plan to make a profit in this scenario?

PaulAJ 6y ago
Well, if I understand the OP correctly, it sounds like tethers are basically being printed and sold cheap in return for real money, so lots of people think they have a profit because they have more tethers than the dollars they started with. So if you can get in to that situation and then quickly sell the tethers before the whole thing collapses then you should be in the money. OTOH if that isn't possible then the allegation that this whole thing is a pyramid scheme fails.
- Erlich_Bachman 6y ago
  > sold cheap Where? Find a place that consistently sells tether cheap. If anything, the lack of this place is a sign of poor research base for the original article. They mention that some exchanges give tether "prises" sometimes, on some occasions, to a select number of users. I don't see how that is so bad, and neither do I see how you could consistently profit from that. Those incentives are likely to be once per user, or once per referred customer, etc. There are likely protections in the form of "you have to trade for this much in order to realize the total prise amount". I don't see how this is any different from bonuses that many online casinos give out, and no one takes that as a sign that a given casino that does this is insolvent.
  - azeirah 6y ago
    Good point, for those tethers to have that big an influence on the market, they need to get into the hands of real people buying tether with real money somehow. According to the article it looks like this 1. Person buys btc with usd on coinbase or equivalent 2. Moves btc to shady exchange with tether promotions Those promotions need to be _huge_ in for those newly minted tethers to get into the hands of real people trading. I looked at the site with promotions linked by the article, and the front page features a couple of missions that give 50 USDT total for doing things like "join our telegram group", "set up a notification on our app".

leppr 6y ago

You can do this indeed but that'll cost you money as USDT is valued slightly below 1 USD, and you will incur slippage the larger your amount is. The best way to withdraw large amounts of Tether's to USD is through their platform itself, for a fixed ~$1000 fee.