4 ms·

If it shows any risk to the price of Bitcoin, Tether will just print tokens out of thin air to buy them. As is tradition

DANmode 3y ago
Of all the things to see the Tether people indicted for on HN, it's increasing the price of Bitcoin?!
- simmerup 3y ago
  Is that a surprise to you? https://blog.dshr.org/2024/01/good-news-for-tether.html?m=1 https://blog.dshr.org/2024/01/good-news-for-tether.html?m=1
  - DANmode 3y ago
    Well, yeah. It is a surprise to me. They're linked up heavy with dirtbag fraudsters, and pedophiles. Seems worth mentioning.
    - simmerup 3y ago
      And yet you didn’t
      - DANmode 3y ago
        ...I just did. Please stop only posting hot takes and "gotchas" here. Be more substantive.
- sebzim4500 3y ago
  These conspiracy theories have been around for years, it's not new. I have no idea if they are true or not, but certainly the people that believe them do not have evidence.
  - simmerup 3y ago
    Tethers already been fined for misleading people by saying their coins are 1-1 backed by USD. That’s evidence
  - timmytokyo 3y ago
    Please provide one reason to believe that USDT is actually 1-for-1 backed by USD. Because they say so? Tether is the crypto version of a wildcat bank. It's totally unaudited, it's owned and operated by a former plastic surgeon and others with limited experience in finance, and it's been heavily fined by the state of New York for its shenanigans. It's only a matter of time before they implode like 3AC, Celsius, FTX, Signature, etc. etc.
    - jujube3 3y ago
      Tether's business is very profitable right now because they don't have to pay interest. They can park all the money people hand to them in exchange for tether in T-bills and earn 5%. Meanwhile the people holding the tether get nothing. Basically, they are a bank that pays no interest on deposits.
blackoil 3y ago
Who'll be buyer for 2B worth of tether?
- simmerup 3y ago
  No one. But they don’t need a buyer to create Tether coins.
  - joncrocks 3y ago
    But if they want to buy Bitcoin with them there needs to be someone on the other side of the transaction.
    - castalian 3y ago
      The users of USDT are fine with this scheme (at least, they've been so far)
    - simmerup 3y ago
      Which is fine, as long as the Tethers aren’t turned into real money their value isn’t realised. They stay in the system and the charade goes on
    - dandanua 3y ago
      It could be pretty much the Germany police, directly or indirectly, since Tether proposes non volatile "currency" easily convertible with Bitcoin.
  - bluecalm 3y ago
    But the German police wants real money not Tether. There needs to be someone to offer it or BTC/USD will collapse.
- timmytokyo 3y ago
  The exchanges and crypto trading firms take billions of Tether in the form of bitcoin-collateralized loans [1]. Alex Mashinsky, former CEO of the now-defunct Celsius Network, described how it works [2]: “If you give them enough collateral, liquid collateral, bitcoin, ethereum and so on ... they will mint tether against it,” he said. “New USDT is issued for such loans,” he added, and later destroyed when the loan is closed “so it does not permanently increase USDT in circulation”. If true, this contradicts Tether's claims that it only mints USDT in exchange for USD-backed treasuries. [1] https://www.dirtybubblemedia.com/p/examining-tethers-secret-loan-portfolio https://www.dirtybubblemedia.com/p/examining-tethers-secret-... [2] https://www.ft.com/content/0035016c-29ad-4e6f-9163-2a17df490aa5 https://www.ft.com/content/0035016c-29ad-4e6f-9163-2a17df490...

DANmode 3y ago

Of all the things to see the Tether people indicted for on HN, it's increasing the price of Bitcoin?!

simmerup 3y ago
Is that a surprise to you? https://blog.dshr.org/2024/01/good-news-for-tether.html?m=1 https://blog.dshr.org/2024/01/good-news-for-tether.html?m=1
- DANmode 3y ago
  Well, yeah. It is a surprise to me. They're linked up heavy with dirtbag fraudsters, and pedophiles. Seems worth mentioning.
  - simmerup 3y ago
    And yet you didn’t
    - DANmode 3y ago
      ...I just did. Please stop only posting hot takes and "gotchas" here. Be more substantive.
sebzim4500 3y ago
These conspiracy theories have been around for years, it's not new. I have no idea if they are true or not, but certainly the people that believe them do not have evidence.
- simmerup 3y ago
  Tethers already been fined for misleading people by saying their coins are 1-1 backed by USD. That’s evidence
- timmytokyo 3y ago
  Please provide one reason to believe that USDT is actually 1-for-1 backed by USD. Because they say so? Tether is the crypto version of a wildcat bank. It's totally unaudited, it's owned and operated by a former plastic surgeon and others with limited experience in finance, and it's been heavily fined by the state of New York for its shenanigans. It's only a matter of time before they implode like 3AC, Celsius, FTX, Signature, etc. etc.
  - jujube3 3y ago
    Tether's business is very profitable right now because they don't have to pay interest. They can park all the money people hand to them in exchange for tether in T-bills and earn 5%. Meanwhile the people holding the tether get nothing. Basically, they are a bank that pays no interest on deposits.

blackoil 3y ago

Who'll be buyer for 2B worth of tether?

simmerup 3y ago
No one. But they don’t need a buyer to create Tether coins.
- joncrocks 3y ago
  But if they want to buy Bitcoin with them there needs to be someone on the other side of the transaction.
  - castalian 3y ago
    The users of USDT are fine with this scheme (at least, they've been so far)
  - simmerup 3y ago
    Which is fine, as long as the Tethers aren’t turned into real money their value isn’t realised. They stay in the system and the charade goes on
  - dandanua 3y ago
    It could be pretty much the Germany police, directly or indirectly, since Tether proposes non volatile "currency" easily convertible with Bitcoin.
- bluecalm 3y ago
  But the German police wants real money not Tether. There needs to be someone to offer it or BTC/USD will collapse.
timmytokyo 3y ago
The exchanges and crypto trading firms take billions of Tether in the form of bitcoin-collateralized loans [1]. Alex Mashinsky, former CEO of the now-defunct Celsius Network, described how it works [2]: “If you give them enough collateral, liquid collateral, bitcoin, ethereum and so on ... they will mint tether against it,” he said. “New USDT is issued for such loans,” he added, and later destroyed when the loan is closed “so it does not permanently increase USDT in circulation”. If true, this contradicts Tether's claims that it only mints USDT in exchange for USD-backed treasuries. [1] https://www.dirtybubblemedia.com/p/examining-tethers-secret-loan-portfolio https://www.dirtybubblemedia.com/p/examining-tethers-secret-... [2] https://www.ft.com/content/0035016c-29ad-4e6f-9163-2a17df490aa5 https://www.ft.com/content/0035016c-29ad-4e6f-9163-2a17df490...