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Binance just transferred 6B Tethers to an unknown address
- par 5y agocan someone explain the implication of this to a newbie like me?
- arthurcolle 5y agowhen you move a large amount of cryptos to an exchange it is seen by the market at large as a sell signal when a large amount of cryptos are moved off of an exchange, it is seen as a bullish signal because it means that they will be chillin' for a bit and not actively traded. a bunch of weird Tether IOUs being moved off exchange might mean they plan to redeem these for dollars (idk how this even works) or they might be doing a bunch of OTC trades, or stackin NFTs or something
- BitAstronaut 5y agoCan someone unpack “stackin NFTs” for me?
- arthurcolle 5y agoBuy overpriced NFTs in exchange for UST and hold them until they find another greater fool to resell the item to
- ramesh31 5y ago>Buy overpriced NFTs Is there any other kind of NFT?
- arthurcolle 5y agoThe underpriced ones
- vainles 5y agoI think what they meant is that Binance may be using the funds to buy NFTs
- deleted 5y ago[deleted]
- bongoman37 5y agoThat's kind of weird to see it as a sell signal. Couldn't it very well be someone hugely interested in buying it so it is a buy signal? Every transaction has a buyer and seller and both would be thinking they are making a good trade or they wouldn't be in it.
- radicaldreamer 5y agoNothing, large exchanges rotate their cold storage around all the time for all kinds of reasons, every time this happens a bunch of people on Twitter go wild and it's a nothingburger 99% of the time.
- FirstLvR 5y agosus
- dylkil 5y agoso they are changing cold wallets, how is this news?
- X6S1x6Okd1st 5y ago98k transactions in the last 24h doesn't sound like a cold wallet. Maybe hot wallet maintenance though, it looks like it's mostly dispursing to addresses that look like small user addresses (e.g. ~20 txns hold a couple different tokens, just transfer them around)
- humps 5y agoIsn't it maintenance related as linked to in a reply to that tweet? https://www.binance.com/en/support/announcement/27d6afd432094769b8a0b6934ddbaf91 https://www.binance.com/en/support/announcement/27d6afd43209...
- laumars 5y agoThis seems to happen every time a Twitter link is posted to HN: people go off on some wild speculations when actually the detail is already published elsewhere and is usually pretty mundane.
- adflux 5y agoCould mean they are trying to convert them into dollars again, without breaking the peg. Maybe they want to be the first to rush to the exit as they know there's most likely not enough USD backing behind tether (not 1usd:1usdt) to pay everyone back.
- neom 5y agoFull disclosure I'm totally not versed in crypto at all, but I do recall reading something on HN a while ago that teather is audited but one of the big 5 auditors (not that it means much, look at 1MDB etc)?
- michaelt 5y agoTether is pretty notorious for not being audited. And for repeatedly having auditors look at their accounts then run for the hills.
- agsnu 5y agohttps://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether https://www.bloomberg.com/news/features/2021-10-07/crypto-my... https://www.theverge.com/2021/10/15/22728253/tether-41-million-misleading-statements-fiat-currency-bitfinex-cftc https://www.theverge.com/2021/10/15/22728253/tether-41-milli...
- archontes 5y agoThey have no legal obligation to pay anyone back.
- Cthulhu_ 5y agoSo if they made a typo, would it be lost to the void? I mean probably not since they control the blockchain and they can fork it to undo the transaction, but still. That's a lot of money to move in one go.
- thebean11 5y agoYou mean a typo in the destination address? There's a zero percent chance anybody is manually typing it, any sane system would have checks and balances (like, do we definitely control the destination address?). If they are sending the money externally, they'd have a secure way for the other party to communicate the address (like a signed message).
- dsr_ 5y ago"a zero percent chance anybody is manually typing it, any sane system would have checks and balances" I agree with your reasoning but it assumes facts not in evidence.
- deleted 5y ago[deleted]
- steelbrain 5y ago> probably not since they control the blockchain and they can fork it to undo the transaction Do you have anything to back that claim up? I don't understand, since the whole fuss behind decentralized cryptos is that they are, you know, decentralized.
- terminalendless 5y agobeginning movement of the exit scam?
- naveen99 5y agoKind of ridiculous that we may have an ETF on #bitcoin futures tomorrow without options on bitcoin futures on major retail brokerages. The princess lives in another castle ! Paging Vlad and Baiju.
- latchkey 5y agoIt cost $0.03 for the transaction.
- vkou 5y agoAs someone pointed out, if they made a typo, or if there was a malicious insider, it would cost them 6B to make this transaction. The cost of a transaction also includes the probability of making a mistake times the cost of that mistake. The probability of making a mistake here is not zero.
- latchkey 5y agoThat is a UX issue. Nobody is arguing that crypto is prime time ready for grandma to use it.
- reidjs 5y agoDidnt some major bank recently make a similar-scale mistake from a weird UI issue, and they couldn’t revert the transaction?
- bidirectional 5y agoYes, Citi did. They couldn't revert the transaction because they accidentally paid off the full value of a debt when making an interest rate payment on behalf of a client, and the law says that repayment of a debt does not need to be returned in case of error.
- waynesonfire 5y agohaha should have used tether.
- vkou 5y agoYes, but as another poster pointed out, their problem was that they owed their counterparty money. The courts ruled that early accidental repayment of a debt did not have to be returned. If they wired me 6 billion dollars, I would not get to keep it.
- deleted 5y ago[deleted]
- aazaa 5y agoWhat's the story here? Why is this front page news? It's an open blockchain. You can see transactions. That's not news in itself.
- X6S1x6Okd1st 5y agoSeems likely hot wallet to hot wallet. There's a lot of dispersal happening to small accounts that have been around for a while.