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This is very interesting. Hindenburg is the real deal. One challenge may be that, like the Mafia, Tether keeps its inner circle and employs family members. The
by graeme 5y ago
This is very interesting. Hindenburg is the real deal.
One challenge may be that, like the Mafia, Tether keeps its inner circle and employs family members. They have ~15 employees for a 70 billion dollar operation.
The CTO’s wife is a manager, and the CEO’s daughter works for an unnamed crypto family office, which may be related.
Their counterparties in Chinese commercial paper may not know they are counterparties due to proxies.
Still, the statements are out there. Zeke Faux from Bloomberg got a copy of their records somehow. They’ve had to give them to the New York Attorney General, and their accountants in the Cayman Islands, among others. And other counterparties may have bits and pieces.
Someone may be tempted by this.
- yawaworht1978 5y agoHow did you get this info? I am inclined to apply, but what would be the the best company? Bitfinex or tether?
- deleted 5y ago[deleted]
- Taikonerd 5y agoI just realized that the Bloomberg reporter who wrote the recent story is named "Zeke Faux." (Faux meaning "fake" in French, in a story about fraud.) Is his name a pseudonym? If not, it's another surreal point in a surreal story.
- OJFord 5y agoIf you're unacquainted, look up (other?) examples of 'nominal determinism' - you're in for a treat!
- kingofpandora 5y ago*nominative determinism
- OJFord 5y agoHm, that does seem to be more standard. Both nominal and onomastic redirect to the page titled nominative determinism on Wikipedia though. Nominal makes a lot more sense to me than nominative.
- lgierth 5y agoZeke = ZK = zero-knowledge?
- speedybird 5y agoI guess it's actually his real name, and Zeke short for Ezekiel isn't uncommon. But Zeke can also mean 'cloak'.
- fknorangesite 5y agoChrist this may as well be numerology.
- speedybird 5y agoAs I said, I think it's probably his real name. But it's a cool name for sure; his name would be right at home in a cyberpunk novel.
- disillusioned 5y agoJust a hop skip away from Q
- nineplay 5y agoI'll play! Teth - Er Teht: The Phoenician letter name ṭēth may mean "spinning wheel" https://en.wikipedia.org/wiki/Teth https://en.wikipedia.org/wiki/Teth ER: Abbreviation for Emergency Room "Teth" + "ER" = Spinning dangerously out of control, putting one or more lives at risk. How did I do?
- perihelions 5y agoYour user name is "nine" and you're studying a Wikipedia page about the Semitic letter which means '9' in gematria. Is any of this a coincidence? Nein!
- 0ksana 5y agoYou've opened up a can of something. Check this out: Zeke = 4 letters. Ezekiel, the long form = 7 letters (note this number, cos it will come up further down). Cloak = 5 letters. 4 + 5 = 9. 9 is the number of spiritual adepts that govern the 7 Universes. 9 * 7 = 63. Add those two digits, and you get 9, again. See where this is headed?
- mikeyouse 5y agoNope - that's his real last name. We have some mutual friends and via FB I can see at least a dozen family members with the same surname.
- VRay 5y ago"Well, Mikey Ouse on HackerNews vouched for him"
- avree 5y agoIt's pretty clear that Zeke Faux from Bloomberg existed long before Tether existed as a company.
- kfprt 5y agoOr is that just what 'Zeke Faux' wants you to believe??? /s
- mikeyouse 5y agoRight.. I could post screen shots but who actually cares? He's got bylines in Bloomberg about questionable finance companies going back a decade.. https://www.bloomberg.com/news/articles/2010-04-13/ubs-ordered-to-pay-two-lehman-structured-note-investors-432-000-by-finra https://www.bloomberg.com/news/articles/2010-04-13/ubs-order... Guess it could be the long con.. his first article for Bloomberg was written shortly after Bitcoin was first created...
- baby 5y agoIt also means wrong
- shoo 5y agonot clear if it is the easiest target to short, given that many people who use tether are fairly skeptical about how/if the tokens are backed by assets but use it anyway (if the recent Bloomberg story is accurate).
- Marazan 5y agoIt is a terrible target to short as you can only do it through exchanges that deal in Tether. Exchanges that can manipulate your position and liquidate you if they feel like it. Exchanges that benefit from Tether existing.
- PKop 5y agoTether is pervasive in DeFi. You could borrow Tether through a smart contract, exchange for another stable or asset. Pay the interest until it collapses in the future and, buy back worthless Tether cheap to pay off loan and get collateral back.
- thebean11 5y agoThe danger is that the smart contract you borrow from becomes insolvent and you lose your collateral. This becomes way more likely if Tether/crypto is crashing. Some of them are more prone to that than others, I'm sure, but all of them require collateral > the amount you borrow, so the risk is large.
- PKop 5y agoYes that is the basic structure of all crypto loans, I'm just describing a mechanism by which you could short Tether. I get what you mean that if Tether collapses, crypto assets like ETH, BTC would crash too. But you could short Tether against USDC w/ USDC as collateral too. I can definitely envision a scenario where USDC holds relatively stable even if USDT crashes. Nearly all of the smart contract loans are over collateralized, so collateral > borrow isn't too hard to achieve...but yes, probably only likely in crash if collateral is another stable that holds peg. Just to be clear, I think shorting Tether is a bad idea lol
- fnordfnordfnord 5y ago>Hindenburg is the real deal. Hindenburg is not the real deal. If you think Hindenburg is the real deal you should pay closer attention to their activities. They (he) are one of a number of noisy short sellers who try to drive stock prices with their tweets/reports. SEC should be doing things to these people. That said, he is probably right about Tether. Tether should make every crypto speculator or holder very nervous.
- andreilys 5y agoDo you have an example of them targeting a non-fraudulent/fair-valued company and ruining them? As far as I know they were the ones who broke the NKLA scandal. We need short sellers to keep markets honest and stop fraudsters from taking advantage of the current exuberant markets.
- cdolan 5y agoThey were right about Nikola and Lordstown Motors. I’m a Hinden-believer I suppose
- chii 5y agoyou don't need to be a faithful believer - evidence speaks for itself. If hindenburg presents a short thesis, they would need to provide evidence in their papers. No one should be blindly believing them, just because they have a good past record.
- pepoluan 5y ago> No one should be blindly believing them, just because they have a good past record. True. And that is why they don't act on just 'suspicion', but willing to pay to dollars for information.
- panick21_ 5y agoAnybody that has been following that space in any details already knew that Nikola and Lordstown were terrible companies. They did some minimal journalism on them and put it out. And nothing the showed outside of maybe that the truck was going down hill was in the least surprising.
- deleted 5y ago[deleted]
- lupire 5y agoHindenberg! What an amazing name for a business that bets on sinking massive failures.