5 ms·

Bitfinex (B) sees orders incoming for BTC or other currency. Then B acquires for $X. Then B fills the order to clients at $X.03 Boom, $0.03 free money. Multipl

Bitfinex (B) sees orders incoming for BTC or other currency. Then B acquires for $X. Then B fills the order to clients at $X.03 Boom, $0.03 free money. Multiply by scale of their client base.

gruez 4y ago
That's just front running though? I'm not sure how tether has to do with it. You can pull that off with or without creating a stablecoin with questionable backing.
wskinner 4y ago
1. This only applies to market orders. 2. Bitfinex is not the only exchange where people can trade BTC or other crypto. 3. How does B acquire BTC for $X at scale?
- dangero 4y ago
  1. They can see an order match for a limit order and preempt it with a better offer before pushing it through by a micro-fraction of a penny 2. They can run trading bots on all major exchanges to keep USDT pegged —- while not foolproof it will hold in most situations provided there is enough liquidity in their accounts on every exchange.
grey-area 4y ago
Even more profitable is printing their own currency with nothing backing it, then lying about having it fully backed to set the value at or just below $1. Each USDT printed and sold to a sucker = $1 USD free money.
- raven105x 4y ago
  You're describing post-1971 USD. It's getting difficult to tell which currency is the bigger scam at this point.
  - tartoran 4y ago
    Except the latter is backed by an army and you can actually buy stuff with it. The former is so volatile that you don’t know if it’ll exist next year or not
    - andirk 4y ago
      8% of every dollar in your pocket a year ago no longer exists.
      - shuckles 4y ago
        Not only is that adjacent to, but itself, a wrong statement, what does it even have to do with anything?
        andirk 4y ago
        shuckles 4y ago
        Inflation is a measure of purchasing power. I have all the dollars in my pocket and, depending on what I'm trying to buy like shipments of containers from Shanghai to Los Angeles, I could possibly buy more goods and services from last year. I think your comments are below the level of quality the HN community demands.
        andirk 4y ago
        For most consumers, 8% of the dollars in your pocket are gone. It means you have less money now than you did a year ago. > I have all the dollars in my pocket OK, you must be talking physical paper? > I could possibly buy more goods Most consumers are currently hurting from inflation.
        tartoran 4y ago
        Inflation is horrible but what alternatives does crypto provide? It seems like 7-10 is still more acceptable than 90% or even 100% loss. I did buy some crypto and its value tanked so much it’s not even worth selling it anymore. Wish I just left the money in my banking account or done something with it… I did buy into the hype but fully admit I was an idiot for doing so. At least I learned that it’s best to stay as far away as possible from this space. What’s even more interesting is that Im adverse to gambling and all that…

Bitfinex (B) sees orders incoming for BTC or other currency. Then B acquires for $X. Then B fills the order to clients at $X.03 Boom, $0.03 free money. Multiply by scale of their client base.

gruez 4y ago

That's just front running though? I'm not sure how tether has to do with it. You can pull that off with or without creating a stablecoin with questionable backing.

wskinner 4y ago

1. This only applies to market orders. 2. Bitfinex is not the only exchange where people can trade BTC or other crypto. 3. How does B acquire BTC for $X at scale?

dangero 4y ago
1. They can see an order match for a limit order and preempt it with a better offer before pushing it through by a micro-fraction of a penny 2. They can run trading bots on all major exchanges to keep USDT pegged —- while not foolproof it will hold in most situations provided there is enough liquidity in their accounts on every exchange.

grey-area 4y ago

Even more profitable is printing their own currency with nothing backing it, then lying about having it fully backed to set the value at or just below $1. Each USDT printed and sold to a sucker = $1 USD free money.

raven105x 4y ago
You're describing post-1971 USD. It's getting difficult to tell which currency is the bigger scam at this point.
- tartoran 4y ago
  Except the latter is backed by an army and you can actually buy stuff with it. The former is so volatile that you don’t know if it’ll exist next year or not
  - andirk 4y ago
    8% of every dollar in your pocket a year ago no longer exists.
    - shuckles 4y ago
      Not only is that adjacent to, but itself, a wrong statement, what does it even have to do with anything?
      - andirk 4y ago
        shuckles 4y ago
        Inflation is a measure of purchasing power. I have all the dollars in my pocket and, depending on what I'm trying to buy like shipments of containers from Shanghai to Los Angeles, I could possibly buy more goods and services from last year. I think your comments are below the level of quality the HN community demands.
        andirk 4y ago
        For most consumers, 8% of the dollars in your pocket are gone. It means you have less money now than you did a year ago. > I have all the dollars in my pocket OK, you must be talking physical paper? > I could possibly buy more goods Most consumers are currently hurting from inflation.
        tartoran 4y ago
        Inflation is horrible but what alternatives does crypto provide? It seems like 7-10 is still more acceptable than 90% or even 100% loss. I did buy some crypto and its value tanked so much it’s not even worth selling it anymore. Wish I just left the money in my banking account or done something with it… I did buy into the hype but fully admit I was an idiot for doing so. At least I learned that it’s best to stay as far away as possible from this space. What’s even more interesting is that Im adverse to gambling and all that…