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>the coin which provides the most liquidity in the market is an obvious scam. But what does that actually imply? What's the scam? This isn't a black and white

by FDSGSG 5y ago

>the coin which provides the most liquidity in the market is an obvious scam. But what does that actually imply? What's the scam? This isn't a black and white thing. Tether might not have sufficient assets to be able to redeem any USDT for USD, or Tether might actually have sufficient assets and willingness to redeem all USDT and then some... or anything in between. Tether being dishonest is one thing, Tether not being able to maintain the USD peg is another.

riffraff 5y ago
But that's the point: the assets they have are not safe as treasury bills, and in a significant part they are backed by risky assets, including other stuff that depends on crypto, so if ever there is a bank run they will not be able to keep up with the redemptions. The fun bit is that few can actually redeem, and most of those who could have a vested interest in never doing it anyway!
chaostheory 5y ago
The scam is Tether owns a brokerage that they used buy other crypto with their barely backed, worth much less than advertised stable coin which they falsely claim is worth exactly the same as USD. (Tether also pretended that they weren’t affiliated with Bitfinex, the aforementioned brokerage) Consequently, they’re artificially pumping the cryptos that they are buying. Once they artificially pump crypto, they then dump it. They’ve probably pumped and dumped several times now People are guessing that they’re doing this to regain reserves that were stolen by an untrustworthy bank that they previously used. Ie they were probably telling the truth in the past before their money was stolen. It’s similar to what happened with Mt Gox. What’s impressive to me is how the people at Tether are somehow 8 steps ahead of regulators, whereas Mt Gox just failed overnight. Imo regardless of Tether fuckery, I believe that the Ethereum platform has utility beyond speculation

by FDSGSG 5y ago

riffraff 5y ago

But that's the point: the assets they have are not safe as treasury bills, and in a significant part they are backed by risky assets, including other stuff that depends on crypto, so if ever there is a bank run they will not be able to keep up with the redemptions. The fun bit is that few can actually redeem, and most of those who could have a vested interest in never doing it anyway!

chaostheory 5y ago

The scam is Tether owns a brokerage that they used buy other crypto with their barely backed, worth much less than advertised stable coin which they falsely claim is worth exactly the same as USD. (Tether also pretended that they weren’t affiliated with Bitfinex, the aforementioned brokerage) Consequently, they’re artificially pumping the cryptos that they are buying. Once they artificially pump crypto, they then dump it. They’ve probably pumped and dumped several times now People are guessing that they’re doing this to regain reserves that were stolen by an untrustworthy bank that they previously used. Ie they were probably telling the truth in the past before their money was stolen. It’s similar to what happened with Mt Gox. What’s impressive to me is how the people at Tether are somehow 8 steps ahead of regulators, whereas Mt Gox just failed overnight. Imo regardless of Tether fuckery, I believe that the Ethereum platform has utility beyond speculation