| /r/spambotdetector | Optout | Original Github, [–]GoofyHumongous 1 point2 points3 points 5 months ago* (19 children). It's actually pretty normal for an entity like an exchange (or a bank) not to hold assets that perfectly match its liabilities, as long as they're liquid enough to cover them. An exchange with the ability to transact in dollars doesn’t need tether. Gox. Doesn't that mean Tether's scheme is working? The connection with the tale of the emperor's new clothes is that people assume that since everyone else buys in it is sane (and that reality is in some way suspended). But that just makes ballon bigger, which makes the water pressure bigger, which makes the holes rip open bigger, which makes the water flow out even faster, which makes you have to pump even more water in even faster. dunno). All the market maker bots will plug the hole in the order book with supporting buy orders and trading will resume at the higher price. Author David Gerard was quoted by the Wall Street Journal saying: Tether is sort of the central bank of crypto trading … [yet] they don’t conduct themselves like you’d expect a responsible, sensible financial institution to do. Eating the sell side of an order book makes the price go up. idk how they got that info, but assuming it's true, than it's pretty clear why they do it. right, so if every other actor had diamond hands... and 50B was sold.... no big deal. Get help with Personal Hotspot on your iOS device. So presumably the hashpower would roll back to the bare minimum necessary to keep what's left of the ecosystem alive: i.e. The T$ is created and backed by the loan, because the borrower can always give it back. Tether’s Technology Stack . But nonetheless I have some reservations and open questions. Tether printing moves the market appreciably; 48.8% of BTC’s price rise in the period studied occurred in the two-hour periods following the arrival of 91 different Tether grants to the Bitfinex wallet. Let's say the market for collectible stamps really explodes. (The Tether printer was quiet for about a week after the STABLE Act came out — and the price of Bitcoin slid down about $3,000.) The truth is that Tether provides important features such as instant transactions and cost-effectiveness. That's probably not even hard given how thinly USD/USDT are traded on exchanges. Also, the USDT supply figure has appreciated to the $10 billion mark. A laser printer is one of the most ingeniously designed electronic devices, whose working is based on the xerography or electrophotography. I know it's supposed to be dollars, but Bitcoin does have value. Some WiFi Dongles do not connect to the laptop or PC and operate independently to provide you with Wi-Fi internet using cellular data. By printing more Tether, Bitfinex increases this supply. That would line up with /u/sudospectral's 100,000 BTC number. [–]Street-Match 3 points4 points5 points 5 months ago (3 children). Or maybe Tether really does have the dollars, and the amount of dumb but very real fiat money in crypto ecosystem is more than we thought. So the number of tethers not in the hands of Bitfinex increases with the same magnitude as the total tether count. Setting up Your Network with Tether . This will cause the price to collapse, as everyone suddenly realizes at once that they aren't worth $1 each and they all try to sell at the same time. This is unavoidable, but it doesn't seem to be happening. Considering that the stablecoin’s price is pegged to the US dollar. So, while things certainly look like dangerous (look at the ever-accelerating parabolic printing), I doubt the crash down is imminent. I guess just I'm too tough to get cancer." Do exchanges in China not support Renminbi or do they just not support fiat currency trading as a rule? Also, if exchanges would going to engage in this kind of manipulation it seems like they could just do it Mt. Maybe like 20bn USDT worth. It is being loaned out to arbitrage bots. I have a hard time intuiting much here but it seems like there are only a couple of natural limits on Tether’s ability to issue tether backed by nothing: there has to be enough real currency (fiat) coming ‘in to the system’ to cover mining costs, there has to be enough fiat to absorb any tether that makes it to an exchange with a tether/fiat trading pair to maintain ‘the peg’. [–]accidentalclipboard 7 points8 points9 points 5 months ago (0 children), [–]FuckNewRedditPopups 2 points3 points4 points 5 months ago (8 children). Another issue is whether tether expects a loan to be paid back in tether or some other currency which complicates any reasoning about the situation. Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”). Tether Stablecoin Guide: How USDT Crypto Token Works Tether (USDT) stablecoin is one of the cryptocurrency market's biggest controversial topics in the bitcoin community. Bitfinex made BFX tokens tradable on their own platform (no conflict of interest there, I'm sure), where it traded far below par. The platform provides the foundation from which various digital assets supported. If tethered swimming is the option you pick for your swim workouts, it is a good choice. One observation is that their printing has diminishing returns, and they've been printing 500M per day this past week just to prop up the price above 19k. Which limit how much money an individual can moved out of the country. This competition will cause people to dump USDT. And the overall crypto ecosystem is cash insolvent and there certainly isn't $561B USD kicking around to back the market cap of crypto, so the whole thing is vulnerable to a bank run. The digital art piece links the digital and the physical worlds, elements of the animation are reflected in Angelo’s designs and vice versa. The fixing of Tether value to that of fiat currency is aimed at keeping cryptocurrencies valuation stable. Tether is a cryptocurrency with tokens issued by Tether Limited. Maybe there are other exchanges doing this conversion in the background. PdaNet+ offers Bluetooth and USB tethering on all Android phones, while its Wi-Fi tethering will only work on some phones. Even after the OTC crackdown in China. Because Bitcoin is volatile and is slower to transact, I would guess? The hardcore apologists argue that tether provides some kind of liquidity/fungibility at the exchange level. Tether may kill BTC and ETH before they manage to move to PoS. [–]DjangoWexler 48 points49 points50 points 5 months ago (71 children). These tasks are managed collectively by the network. https://en.wikipedia.org/wiki/The_Emperor%27s_New_Clothes#Plot, https://www.kalzumeus.com/2019/10/28/tether-and-bitfinex/, https://coinmarketcap.com/currencies/tether/, https://coinmarketcap.com/currencies/bitcoin/. This limits the amount of dollars needed to maintain the peg. ), [–]devliegende 2 points3 points4 points 5 months ago* (17 children). [–]RedPill43 1 point2 points3 points 5 months ago (0 children). Angelo Galasso will also refund the gas costs for the purchase of the NFT for in-person collections. I think they were forced into this scheme when they became insolvent and therefore can't meet redeem requests the normal way (i.e. Once that trust is lost, how could they ever get it back? Maybe sizable private entities with enough of a stake to be interested but not enough assets to just wash trade with their own funds? A person has dollars and wants to buy bitcoin. [–]b1daly 2 points3 points4 points 5 months ago (1 child). I'm glad to see this battle starting. Furthermore, they are forced to keep the printing/buying cycle going because that's the only way for them to extract real USD from the market - they can't sell the crypto on their balance sheet because that's gonna make some outstanding Tethers unbacked, increasing the chance that the entire thing collapses. I guess my thinking was naive and flawed there, but thanks for pointing that out. [–]devliegende 2 points3 points4 points 5 months ago (0 children). [–][deleted] 0 points1 point2 points 5 months ago (0 children). Gold’s 20% discount to its 2020 record high is sufficient for a resumption of a bull market for the metal, as we see it, but store-of-value newcomer Bitcoin is likely to remain a headwind to its upside.”. (The real … Or law enforcement. [–]Rainarrow 2 points3 points4 points 5 months ago (7 children). There's not 1 single account of anyone ever getting USD for their USDT from Tether. Luxury fashion brand Angelo Galasso is releasing its first collection of nonfungible tokens (NFT), which are designed to be sold alongside and reinforce the exclusivity of its handmade items by binding the digital and physical into a single bundle. If you can generate any income using those USDT, they are basically free money to you. Tether tokens exist as digital tokens built on bitcoin (Omni and Liquid Protocol), Ethereum, EOS, Tron, Algorand, SLP and OMG blockchains. It seems like minted Tether is always sent directly to exchanges (based on my memory of Whale Alert tweets). At some point though there's the lie that tethers are pinned to the USDT but Tether can't print USD and doesn't carry enough cash for the pin, its all backed by crypto-denominated debt. That'll create sell pressure on USDT, which will eventually break the USDT peg and expose the shenanigans Tether is running (if the shenanigan theories are correct). Tether is unlikely to collapse because the only way out is via Butts. $800m would wipe out the order book of every exchange down to -2% of the current price. How Does Flexography Work? So, most of the users got "paid back" very soon by selling those tokens to other users. It’s like a bitcoin, but with butts instead. The key element of the backpack and other fashion items in the collection is a finely engraved egg button detail, which mirrors the NFT art associated with the items. The USD has 2 uses: paying their fiat obligations (they are running a business after all which has real costs), and keep the Tether peg at 1:1. Literally the same group of people), and that entity has been insolvent since August (likely for much longer, it's just it's becoming harder for them to cover it up). For instance, USD, Euro, and Japanese Yen among others. Tether (USDT) is a collateralised stablecoin cryptocurrency. Tether does this by minting and destroying tokens. BTC can continue as long as there are suckers willing to hodl or buy. When it drops low enough that miners can't cover their expenses via mining revenues, the fun really starts. They're probably not solvent and never were. Then the next, and the next, until all your BTC have sold. There is none. That would place it in the top 200 of the NYSE. Moreover, the bank analysts highlighted that allocating funds from gold to BTC will ”represent the transfer of billions of cash.” They further asserted that the precious metal will suffer because of bitcoin: ”The adoption of bitcoin by institutional investors has only begun, while for gold, its adoption by institutional investors is very advanced. If the question was: does it seem plausible that such a company was holding ~$4b in banks somewhere? If BTC/USD falls precipitously as it did during Mt. It would be closer to 1m BTC to back current issuance of tether and given recent price history more than that. Now you take your 900 billion USDT and spend a year slowly buying up BTC on the BTC/USDT exchanges. There must be something we are not seeing here. Other items include a finely designed crypto credit card wallet and a key or hardware wallet ring, both including the iconic egg button detail. Animation by @flashtrader1. Tether’s run of printing USDT by the billions seems to have slowed, but it’s worth keeping an eye out for new grants hitting the market. And as the "market cap" doubles without doubling the amount of cash on hand at the exchange the whole thing becomes even more cash insolvent. The impetus would be lost. Maybe the market makers in stablecoin markets are the exchanges themselves. So what's the limitation of this scheme? If Bitcoin reacts to the recent substantial printing of more Tether stablecoins the same as it has in the past, we may finally have a catalyst for the crypto asset retesting its former all-time high.. I think the scam which keeps Tether from dropping in price is the claim that it is a "stable coin" which is backed by U.S. dollars (or anything else). The fractional reserve. In Asia (mainly in China), OTC desks provide majority of the liquidity of CNY <-> USDT trades because exchanges can't operate there. IMO TUSD is the best from a technical/innovation PoV. There are legitimate market makers on the USDT/USD pair on Kraken, or on the USDT/USDC pair on Poloniex, or whatever. Coinbase is down, people are going crazy with conspiracy theories, Tether peg is breaking (at time of post, 1USDT = 0.9488USD). [–]DjangoWexler 0 points1 point2 points 4 months ago (0 children). Lenders always come back as soon as things are stable again. Many industry commentators believe that the company is responsible for artificially inflating the price of Bitcoin. Over time USDC ought to suck up the market share of people doing anything even semi legitimate with fiat-backed stablecoins. I think they were certainly involved in price manipulation which fueled the bull run. This seems rather unlikely to me. It is basically the same pool of arbitrage bots and Tether is their liquidity fuel. They want their USD, and they can't get it. the last transaction made) So there are $13m worth of orders that would buy BTC if the price dropped down to $51,067. This has been unthinkable for a long time. It does not have its own blockchain, but rather functions within Bitcoin’s script as a second-level currency. Tether was launched in July 2014 as “Realcoin”, and repositioned as Tether in November of that year by “Tether Ltd”. I don't think that growth is all real dollars, but I could be wrong. Hell Tether's own terms and conditions says they don't even have to honour the conversion if they don't want to (see sections 3 and 5). Tethering with Third-Party Apps: Download a third-party app. Lately I'm wondering if maybe the exchanges are major players are themselves are running market making bots being run on USDT/USD and USDT/USDC pairs. I don’t know, The whole thing doesn’t add up. If USDT were to abruptly become worthless, then the "monetary base" supporting the price of BTC would have shrunk enormously overnight. I'm sure they exist, but I don't hang out on crypto YouTube, you'd have to go looking! When things go south, though, it all collapses. use the following search parameters to narrow your results: This is not /r/Bitcoin. Tether printer go brrrrr until exchange go boom. So if you’re a Bitcoin believer, just follow the Tether printer and watch the printing. If you didn't buy the USDT to begin with, there's 0 pressure to redeem - you just give them back to Tether when you are done. The easiest way for people to get out of tether is to trade it for crypto. Completely thin air. It formerly claimed that each token was backed by one United States dollar, but on 14 March 2019 changed the backing to include loans to affiliate companies. The Genesis collection is being auctioned on OpenSea, with items expected to sell out quickly. Doesn't this assume that the loans are backed 1-1? Those people use USDT to buy up Bitcoin on exchanges that have BTC/USDT pairs. Its the same people who have been trading BTC and USDT backwards and forwards. However, it's known that Coinbase had a Bitfinex account in 2016 before the Bitfinex hack happened (they were the only one that didn't get the 36% haircut). Tether Stablecoin Guide: How USDT Crypto Token Works Tether (USDT) stablecoin is one of the cryptocurrency market's biggest controversial topics in the bitcoin community. So what’s the end game? How does a WiFi Dongle work? In case it's a long time since you read it, the synopsis on Wikipedia is quite good: https://en.wikipedia.org/wiki/The_Emperor%27s_New_Clothes#Plot, [–]SixLegsGood 2 points3 points4 points 5 months ago (2 children). [–]devliegende 1 point2 points3 points 5 months ago (13 children). Tether prints USDT, unbacked, and distributes it to whoever. Tether is a member of the stablecoins family. But in this case the system depends on the price of BTC staying above the price it was when the borrowers short sold their borrowed USDT. To accomplish this task, Hong-Kong based Tether Limited originally claimed that for every ASDT issued, the firm held an equivalent amount of dollars kept in reserve. [–]DjangoWexler 1 point2 points3 points 5 months ago (14 children). [–]b1daly 1 point2 points3 points 5 months ago* (5 children). However, the chief commodity strategist at Bloomberg – Mike McGlone – took a different stance from the forecast of JP Morgan’s experts. But Bitfinex supports dollar based balances. Angelo Galasso was born in the South of Italy with design and a strong flair for tailoring in his blood. You c an use your phone's mobile data to connect another phone, tablet, or computer to the internet. [–]vslashg 2 points3 points4 points 5 months ago (0 children). You are right - whoever ended up with those Tether bags will want to redeem at some point, I don't know how I wasn't able to see that. Being backed by the USD means for every Tether issued, there is an equivalent amount of dollars kept in reserve. In the early days, Tether claimed that every tether In the case of BTC, I think you buy from OTC and just HODL. and the entire BTC economy probably comes down with it. But since they do not actually have anywhere close to enough dollars, when the wave gets high enough they go under with it. Flexography, also known as Flexo printing or surface printing, works … The limits on this scheme is that at a certain point people will be less and less willing to send fiat to Bitfinex and my guess is that point has been more or less reached. The exchange has to sell Tether and buy dollars. What they pay in exchange of those USDT is a myth though, and I'm leaning to them taking the USDT as a loan instead of buying them. As long as this liquidity could absorb the selling pressure of people cashing out, Tether itself doesn't even need to pay a single dollar to anyone. A lot of trading is done with them so clearly people will accept them in exchange for their crypto. REDDIT and the ALIEN Logo are registered trademarks of reddit inc. π Rendered by PID 32715 on r2-app-050fa4615154e00fc at 2021-05-19 18:19:04.905589+00:00 running 9385e0c country code: US. I don't think it works exactly like that though anymore. Imagine if you live in a country with no access to USD or exchanges, like China. People are more likely to FOMO in if everyone is expecting the ATH be broken and big moves after that. I didn't realize the USDC market cap was going up so much lately. Well, if an exchange offers USD accounts and USD withdrawal to bank accounts, and than don't actually hold the USD you deposit there but swap it for other assets, then they are a fraud anyway (even if the other asset is supposed to be pegged to USD). Those are two distinct assets. If the loan was to be repaid with dollars then Tether would have the dollars to cover redemptions. More money chasing the same amount of BTC means the BTC price goes up. I will summarize the conversation so far: I don't have a response to this. You can see it there on coinmarketcap. This suggests that Tether is actually not printing fast enough, as ridiculous as that is. I mean, the first effect is that basically all the current exchanges would collapse, because USDT is a reserve asset. The difference this time around is the block reward is much less. I didn't quite have it straight in my head either, until these questions forced me to think it through. The existence of USDC has removed some of that friction, though. But if they stop printing be wary of the downside if there isn’t that injection of USDT coming so regularly. In November 2017 after the merger (FORK) the system was hacked and $ 31 million was stolen. It is common knowledge that popular cryptocurrencies such as Bitcoin and Ethereum are quite volatile, hence experience wide swings in prices. The Swim Tether brand of tethered swimming devices is solid, comfortable, and portable. Me: No, Tether is like the USD ledger values on Mt. Buying lots of bitcoins openly on an exchange wouldn't drive up the price pair due to a mathematical function... That's exactly what it will do. Tether, or USTD, is a blockchain-based digital currency. How does tethering work? Whenever two orders match, a trade occurs. Bitfinex eventually bought back all BFX tokens but likely did this by buying them up when it traded sub-par. That's not what I mean. [–]SnapshillBot 5 points6 points7 points 5 months ago (3 children), I disagree. It brings in more cash that doesn't know or doesn't care about Tether risk. [–]Eu-is-socialist 1 point2 points3 points 5 months ago (0 children). It also means there's a good chance that they could somehow "save" it again this time and keep everything going for an indefinite amount of time. If there's no interest in buying at that price level then sell pressure will eventually push it back down, sure, but the initial rising effect is still the same. It's more or less the same as a Madoff-style Ponzi scheme -- as long as times remain good, the incoming money can let you cover the promises you made to the last group of "investors". Tether will see all the redemption requests from the good faith actors that ended up holding the USDT bags. I'd particularly like to see what will happen if on-ramps and/or off-ramps to the game are made illegal and forcefully closed, so NO real money can enter it. You don't have the 900 billion USDT to give back, though. It was probably sometime soon after this that Tether's mission changed to allowing Bitfinex to distribute its new insolvency onto the entire market. When Tether used to claim the had a 1:1 tether:$ backing it was a little easier to see why it was a fraud. By printing more Tether, Bitfinex increases this supply. According to an ongoing correlation that suggests Bitcoin pumps with each new chapter of the Tether saga, the leading cryptocurrency by market cap’s story in 2020 could be capped off with … Their hardware and electricity must be paid for with actual money. And then you have Diem/Libra coming soon which could eat up a lot of the market and will be interesting to watch. A person wants to hold a dollar denominated balance on an exchange that they can’t deposit to directly in anticipation of purchasing bitcoin in the near future and they don’t trust Bitfinex to stay in business or release their crypto. While moonbois are making assumptions all the time? A Giclee is characterized by smooth, gradual changes in tone and color. But of course Tether isn't offering that if it's a scam, or they're not offering it with sufficient robustness, so that's when the bank run will happen. Mathieu is a Information technology professional with over 15 years of experience. Now, remember that Tether and Bitfinx are the same entity (see Panama papers. A portion of those crypto goes onto their balance sheet to "back" the Tether just printed, the rest is sold on USD exchanges in order to generate USD. Now, you couldn't could cash out that much money from the stamp world, because it's an absurd bubble, but based on current stamp prices the nominal market camp of stamps is millions of quadrillions of dollars. But yeah, fraud happens, and if (when) the tether shit hits the fan, we'll see where the real dollars are. those berzerk arbitrage bots and hodlers blindly staring into space, [–]NonnoBomba 1 point2 points3 points 5 months ago (1 child). They don't need to be. Through a collaboration with acclaimed digital artist Doc […], [PRESS RELEASE – Milan, Italy, 19th May 2021]. It's been said by smarter people then me that all financial fraud has a basic similarity -- you're trying to paper over a hole where some money used to be. You can magic the UDST into existence, but you can't magic away the consequences. Likely USDT enters the market against loans. And they also might be ‘on the hook’ to criminal elements who hold tether or that they have other entanglements with. Yeah but, you know, hashrate & difficulty are a relevant parameter only inside a PoW blockchain, exchanges gambling over a plethora of stablecoins or stuff like Ripple (that I'd say don't even qualify as "crypto", technically, but scratches the same itches when gambling on exchanges is considered), plus any PoS creepto like EOS or -wait for it- Ethereum 2.0 -any moment now- would be unaffected by falling hashrates even when considering arbitrage bots moving tokens on-chain from one casino to another. However, the U.S. Dollar is not immune to shifts in the world market’s paradigm and as such, subject to fluctuation. Certain apps and features that require a Wi-Fi connection might not work while using a Personal Hotspot. [–]playingpoodles 1 point2 points3 points 5 months ago (0 children). Instead, USDT is a second-layer cryptocurrency that was built on top of the Bitcoin blockchain but now also functions on the Ethereum, Algorand, EOS, Tron, and OMG blockchains. Much like a central bank, Tether prints its coins. (Meaning the exchange doesn’t move bitcoin from their own wallet to Tether’s wallet). I think everyone else has described how the Tether scheme has always worked. PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC. This drives Tether’s value because Bitcoin was the most valuable crytpcourrency and Ethereum the second most valuable cryptourrency on 9 August 2019. Andrew Mangiapane Parents, Arlo Rise For Animals, Calgary Roughnecks Players, International Public Relations Salary, Long Volatility Reddit, Cotton Jersey Sheets, "/> how does tether printing work | /r/spambotdetector | Optout | Original Github, [–]GoofyHumongous 1 point2 points3 points 5 months ago* (19 children). It's actually pretty normal for an entity like an exchange (or a bank) not to hold assets that perfectly match its liabilities, as long as they're liquid enough to cover them. An exchange with the ability to transact in dollars doesn’t need tether. Gox. Doesn't that mean Tether's scheme is working? The connection with the tale of the emperor's new clothes is that people assume that since everyone else buys in it is sane (and that reality is in some way suspended). But that just makes ballon bigger, which makes the water pressure bigger, which makes the holes rip open bigger, which makes the water flow out even faster, which makes you have to pump even more water in even faster. dunno). All the market maker bots will plug the hole in the order book with supporting buy orders and trading will resume at the higher price. Author David Gerard was quoted by the Wall Street Journal saying: Tether is sort of the central bank of crypto trading … [yet] they don’t conduct themselves like you’d expect a responsible, sensible financial institution to do. Eating the sell side of an order book makes the price go up. idk how they got that info, but assuming it's true, than it's pretty clear why they do it. right, so if every other actor had diamond hands... and 50B was sold.... no big deal. Get help with Personal Hotspot on your iOS device. So presumably the hashpower would roll back to the bare minimum necessary to keep what's left of the ecosystem alive: i.e. The T$ is created and backed by the loan, because the borrower can always give it back. Tether’s Technology Stack . But nonetheless I have some reservations and open questions. Tether printing moves the market appreciably; 48.8% of BTC’s price rise in the period studied occurred in the two-hour periods following the arrival of 91 different Tether grants to the Bitfinex wallet. Let's say the market for collectible stamps really explodes. (The Tether printer was quiet for about a week after the STABLE Act came out — and the price of Bitcoin slid down about $3,000.) The truth is that Tether provides important features such as instant transactions and cost-effectiveness. That's probably not even hard given how thinly USD/USDT are traded on exchanges. Also, the USDT supply figure has appreciated to the $10 billion mark. A laser printer is one of the most ingeniously designed electronic devices, whose working is based on the xerography or electrophotography. I know it's supposed to be dollars, but Bitcoin does have value. Some WiFi Dongles do not connect to the laptop or PC and operate independently to provide you with Wi-Fi internet using cellular data. By printing more Tether, Bitfinex increases this supply. That would line up with /u/sudospectral's 100,000 BTC number. [–]Street-Match 3 points4 points5 points 5 months ago (3 children). Or maybe Tether really does have the dollars, and the amount of dumb but very real fiat money in crypto ecosystem is more than we thought. So the number of tethers not in the hands of Bitfinex increases with the same magnitude as the total tether count. Setting up Your Network with Tether . This will cause the price to collapse, as everyone suddenly realizes at once that they aren't worth $1 each and they all try to sell at the same time. This is unavoidable, but it doesn't seem to be happening. Considering that the stablecoin’s price is pegged to the US dollar. So, while things certainly look like dangerous (look at the ever-accelerating parabolic printing), I doubt the crash down is imminent. I guess just I'm too tough to get cancer." Do exchanges in China not support Renminbi or do they just not support fiat currency trading as a rule? Also, if exchanges would going to engage in this kind of manipulation it seems like they could just do it Mt. Maybe like 20bn USDT worth. It is being loaned out to arbitrage bots. I have a hard time intuiting much here but it seems like there are only a couple of natural limits on Tether’s ability to issue tether backed by nothing: there has to be enough real currency (fiat) coming ‘in to the system’ to cover mining costs, there has to be enough fiat to absorb any tether that makes it to an exchange with a tether/fiat trading pair to maintain ‘the peg’. [–]accidentalclipboard 7 points8 points9 points 5 months ago (0 children), [–]FuckNewRedditPopups 2 points3 points4 points 5 months ago (8 children). Another issue is whether tether expects a loan to be paid back in tether or some other currency which complicates any reasoning about the situation. Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”). Tether Stablecoin Guide: How USDT Crypto Token Works Tether (USDT) stablecoin is one of the cryptocurrency market's biggest controversial topics in the bitcoin community. Bitfinex made BFX tokens tradable on their own platform (no conflict of interest there, I'm sure), where it traded far below par. The platform provides the foundation from which various digital assets supported. If tethered swimming is the option you pick for your swim workouts, it is a good choice. One observation is that their printing has diminishing returns, and they've been printing 500M per day this past week just to prop up the price above 19k. Which limit how much money an individual can moved out of the country. This competition will cause people to dump USDT. And the overall crypto ecosystem is cash insolvent and there certainly isn't $561B USD kicking around to back the market cap of crypto, so the whole thing is vulnerable to a bank run. The digital art piece links the digital and the physical worlds, elements of the animation are reflected in Angelo’s designs and vice versa. The fixing of Tether value to that of fiat currency is aimed at keeping cryptocurrencies valuation stable. Tether is a cryptocurrency with tokens issued by Tether Limited. Maybe there are other exchanges doing this conversion in the background. PdaNet+ offers Bluetooth and USB tethering on all Android phones, while its Wi-Fi tethering will only work on some phones. Even after the OTC crackdown in China. Because Bitcoin is volatile and is slower to transact, I would guess? The hardcore apologists argue that tether provides some kind of liquidity/fungibility at the exchange level. Tether may kill BTC and ETH before they manage to move to PoS. [–]DjangoWexler 48 points49 points50 points 5 months ago (71 children). These tasks are managed collectively by the network. https://en.wikipedia.org/wiki/The_Emperor%27s_New_Clothes#Plot, https://www.kalzumeus.com/2019/10/28/tether-and-bitfinex/, https://coinmarketcap.com/currencies/tether/, https://coinmarketcap.com/currencies/bitcoin/. This limits the amount of dollars needed to maintain the peg. ), [–]devliegende 2 points3 points4 points 5 months ago* (17 children). [–]RedPill43 1 point2 points3 points 5 months ago (0 children). Angelo Galasso will also refund the gas costs for the purchase of the NFT for in-person collections. I think they were forced into this scheme when they became insolvent and therefore can't meet redeem requests the normal way (i.e. Once that trust is lost, how could they ever get it back? Maybe sizable private entities with enough of a stake to be interested but not enough assets to just wash trade with their own funds? A person has dollars and wants to buy bitcoin. [–]b1daly 2 points3 points4 points 5 months ago (1 child). I'm glad to see this battle starting. Furthermore, they are forced to keep the printing/buying cycle going because that's the only way for them to extract real USD from the market - they can't sell the crypto on their balance sheet because that's gonna make some outstanding Tethers unbacked, increasing the chance that the entire thing collapses. I guess my thinking was naive and flawed there, but thanks for pointing that out. [–]devliegende 2 points3 points4 points 5 months ago (0 children). [–][deleted] 0 points1 point2 points 5 months ago (0 children). Gold’s 20% discount to its 2020 record high is sufficient for a resumption of a bull market for the metal, as we see it, but store-of-value newcomer Bitcoin is likely to remain a headwind to its upside.”. (The real … Or law enforcement. [–]Rainarrow 2 points3 points4 points 5 months ago (7 children). There's not 1 single account of anyone ever getting USD for their USDT from Tether. Luxury fashion brand Angelo Galasso is releasing its first collection of nonfungible tokens (NFT), which are designed to be sold alongside and reinforce the exclusivity of its handmade items by binding the digital and physical into a single bundle. If you can generate any income using those USDT, they are basically free money to you. Tether tokens exist as digital tokens built on bitcoin (Omni and Liquid Protocol), Ethereum, EOS, Tron, Algorand, SLP and OMG blockchains. It seems like minted Tether is always sent directly to exchanges (based on my memory of Whale Alert tweets). At some point though there's the lie that tethers are pinned to the USDT but Tether can't print USD and doesn't carry enough cash for the pin, its all backed by crypto-denominated debt. That'll create sell pressure on USDT, which will eventually break the USDT peg and expose the shenanigans Tether is running (if the shenanigan theories are correct). Tether is unlikely to collapse because the only way out is via Butts. $800m would wipe out the order book of every exchange down to -2% of the current price. How Does Flexography Work? So, most of the users got "paid back" very soon by selling those tokens to other users. It’s like a bitcoin, but with butts instead. The key element of the backpack and other fashion items in the collection is a finely engraved egg button detail, which mirrors the NFT art associated with the items. The USD has 2 uses: paying their fiat obligations (they are running a business after all which has real costs), and keep the Tether peg at 1:1. Literally the same group of people), and that entity has been insolvent since August (likely for much longer, it's just it's becoming harder for them to cover it up). For instance, USD, Euro, and Japanese Yen among others. Tether (USDT) is a collateralised stablecoin cryptocurrency. Tether does this by minting and destroying tokens. BTC can continue as long as there are suckers willing to hodl or buy. When it drops low enough that miners can't cover their expenses via mining revenues, the fun really starts. They're probably not solvent and never were. Then the next, and the next, until all your BTC have sold. There is none. That would place it in the top 200 of the NYSE. Moreover, the bank analysts highlighted that allocating funds from gold to BTC will ”represent the transfer of billions of cash.” They further asserted that the precious metal will suffer because of bitcoin: ”The adoption of bitcoin by institutional investors has only begun, while for gold, its adoption by institutional investors is very advanced. If the question was: does it seem plausible that such a company was holding ~$4b in banks somewhere? If BTC/USD falls precipitously as it did during Mt. It would be closer to 1m BTC to back current issuance of tether and given recent price history more than that. Now you take your 900 billion USDT and spend a year slowly buying up BTC on the BTC/USDT exchanges. There must be something we are not seeing here. Other items include a finely designed crypto credit card wallet and a key or hardware wallet ring, both including the iconic egg button detail. Animation by @flashtrader1. Tether’s run of printing USDT by the billions seems to have slowed, but it’s worth keeping an eye out for new grants hitting the market. And as the "market cap" doubles without doubling the amount of cash on hand at the exchange the whole thing becomes even more cash insolvent. The impetus would be lost. Maybe the market makers in stablecoin markets are the exchanges themselves. So what's the limitation of this scheme? If Bitcoin reacts to the recent substantial printing of more Tether stablecoins the same as it has in the past, we may finally have a catalyst for the crypto asset retesting its former all-time high.. I think the scam which keeps Tether from dropping in price is the claim that it is a "stable coin" which is backed by U.S. dollars (or anything else). The fractional reserve. In Asia (mainly in China), OTC desks provide majority of the liquidity of CNY <-> USDT trades because exchanges can't operate there. IMO TUSD is the best from a technical/innovation PoV. There are legitimate market makers on the USDT/USD pair on Kraken, or on the USDT/USDC pair on Poloniex, or whatever. Coinbase is down, people are going crazy with conspiracy theories, Tether peg is breaking (at time of post, 1USDT = 0.9488USD). [–]DjangoWexler 0 points1 point2 points 4 months ago (0 children). Lenders always come back as soon as things are stable again. Many industry commentators believe that the company is responsible for artificially inflating the price of Bitcoin. Over time USDC ought to suck up the market share of people doing anything even semi legitimate with fiat-backed stablecoins. I think they were certainly involved in price manipulation which fueled the bull run. This seems rather unlikely to me. It is basically the same pool of arbitrage bots and Tether is their liquidity fuel. They want their USD, and they can't get it. the last transaction made) So there are $13m worth of orders that would buy BTC if the price dropped down to $51,067. This has been unthinkable for a long time. It does not have its own blockchain, but rather functions within Bitcoin’s script as a second-level currency. Tether was launched in July 2014 as “Realcoin”, and repositioned as Tether in November of that year by “Tether Ltd”. I don't think that growth is all real dollars, but I could be wrong. Hell Tether's own terms and conditions says they don't even have to honour the conversion if they don't want to (see sections 3 and 5). Tethering with Third-Party Apps: Download a third-party app. Lately I'm wondering if maybe the exchanges are major players are themselves are running market making bots being run on USDT/USD and USDT/USDC pairs. I don’t know, The whole thing doesn’t add up. If USDT were to abruptly become worthless, then the "monetary base" supporting the price of BTC would have shrunk enormously overnight. I'm sure they exist, but I don't hang out on crypto YouTube, you'd have to go looking! When things go south, though, it all collapses. use the following search parameters to narrow your results: This is not /r/Bitcoin. Tether printer go brrrrr until exchange go boom. So if you’re a Bitcoin believer, just follow the Tether printer and watch the printing. If you didn't buy the USDT to begin with, there's 0 pressure to redeem - you just give them back to Tether when you are done. The easiest way for people to get out of tether is to trade it for crypto. Completely thin air. It formerly claimed that each token was backed by one United States dollar, but on 14 March 2019 changed the backing to include loans to affiliate companies. The Genesis collection is being auctioned on OpenSea, with items expected to sell out quickly. Doesn't this assume that the loans are backed 1-1? Those people use USDT to buy up Bitcoin on exchanges that have BTC/USDT pairs. Its the same people who have been trading BTC and USDT backwards and forwards. However, it's known that Coinbase had a Bitfinex account in 2016 before the Bitfinex hack happened (they were the only one that didn't get the 36% haircut). Tether Stablecoin Guide: How USDT Crypto Token Works Tether (USDT) stablecoin is one of the cryptocurrency market's biggest controversial topics in the bitcoin community. So what’s the end game? How does a WiFi Dongle work? In case it's a long time since you read it, the synopsis on Wikipedia is quite good: https://en.wikipedia.org/wiki/The_Emperor%27s_New_Clothes#Plot, [–]SixLegsGood 2 points3 points4 points 5 months ago (2 children). [–]devliegende 1 point2 points3 points 5 months ago (13 children). Tether prints USDT, unbacked, and distributes it to whoever. Tether is a member of the stablecoins family. But in this case the system depends on the price of BTC staying above the price it was when the borrowers short sold their borrowed USDT. To accomplish this task, Hong-Kong based Tether Limited originally claimed that for every ASDT issued, the firm held an equivalent amount of dollars kept in reserve. [–]DjangoWexler 1 point2 points3 points 5 months ago (14 children). [–]b1daly 1 point2 points3 points 5 months ago* (5 children). However, the chief commodity strategist at Bloomberg – Mike McGlone – took a different stance from the forecast of JP Morgan’s experts. But Bitfinex supports dollar based balances. Angelo Galasso was born in the South of Italy with design and a strong flair for tailoring in his blood. You c an use your phone's mobile data to connect another phone, tablet, or computer to the internet. [–]vslashg 2 points3 points4 points 5 months ago (0 children). You are right - whoever ended up with those Tether bags will want to redeem at some point, I don't know how I wasn't able to see that. Being backed by the USD means for every Tether issued, there is an equivalent amount of dollars kept in reserve. In the early days, Tether claimed that every tether In the case of BTC, I think you buy from OTC and just HODL. and the entire BTC economy probably comes down with it. But since they do not actually have anywhere close to enough dollars, when the wave gets high enough they go under with it. Flexography, also known as Flexo printing or surface printing, works … The limits on this scheme is that at a certain point people will be less and less willing to send fiat to Bitfinex and my guess is that point has been more or less reached. The exchange has to sell Tether and buy dollars. What they pay in exchange of those USDT is a myth though, and I'm leaning to them taking the USDT as a loan instead of buying them. As long as this liquidity could absorb the selling pressure of people cashing out, Tether itself doesn't even need to pay a single dollar to anyone. A lot of trading is done with them so clearly people will accept them in exchange for their crypto. REDDIT and the ALIEN Logo are registered trademarks of reddit inc. π Rendered by PID 32715 on r2-app-050fa4615154e00fc at 2021-05-19 18:19:04.905589+00:00 running 9385e0c country code: US. I don't think it works exactly like that though anymore. Imagine if you live in a country with no access to USD or exchanges, like China. People are more likely to FOMO in if everyone is expecting the ATH be broken and big moves after that. I didn't realize the USDC market cap was going up so much lately. Well, if an exchange offers USD accounts and USD withdrawal to bank accounts, and than don't actually hold the USD you deposit there but swap it for other assets, then they are a fraud anyway (even if the other asset is supposed to be pegged to USD). Those are two distinct assets. If the loan was to be repaid with dollars then Tether would have the dollars to cover redemptions. More money chasing the same amount of BTC means the BTC price goes up. I will summarize the conversation so far: I don't have a response to this. You can see it there on coinmarketcap. This suggests that Tether is actually not printing fast enough, as ridiculous as that is. I mean, the first effect is that basically all the current exchanges would collapse, because USDT is a reserve asset. The difference this time around is the block reward is much less. I didn't quite have it straight in my head either, until these questions forced me to think it through. The existence of USDC has removed some of that friction, though. But if they stop printing be wary of the downside if there isn’t that injection of USDT coming so regularly. In November 2017 after the merger (FORK) the system was hacked and $ 31 million was stolen. It is common knowledge that popular cryptocurrencies such as Bitcoin and Ethereum are quite volatile, hence experience wide swings in prices. The Swim Tether brand of tethered swimming devices is solid, comfortable, and portable. Me: No, Tether is like the USD ledger values on Mt. Buying lots of bitcoins openly on an exchange wouldn't drive up the price pair due to a mathematical function... That's exactly what it will do. Tether, or USTD, is a blockchain-based digital currency. How does tethering work? Whenever two orders match, a trade occurs. Bitfinex eventually bought back all BFX tokens but likely did this by buying them up when it traded sub-par. That's not what I mean. [–]SnapshillBot 5 points6 points7 points 5 months ago (3 children), I disagree. It brings in more cash that doesn't know or doesn't care about Tether risk. [–]Eu-is-socialist 1 point2 points3 points 5 months ago (0 children). It also means there's a good chance that they could somehow "save" it again this time and keep everything going for an indefinite amount of time. If there's no interest in buying at that price level then sell pressure will eventually push it back down, sure, but the initial rising effect is still the same. It's more or less the same as a Madoff-style Ponzi scheme -- as long as times remain good, the incoming money can let you cover the promises you made to the last group of "investors". Tether will see all the redemption requests from the good faith actors that ended up holding the USDT bags. I'd particularly like to see what will happen if on-ramps and/or off-ramps to the game are made illegal and forcefully closed, so NO real money can enter it. You don't have the 900 billion USDT to give back, though. It was probably sometime soon after this that Tether's mission changed to allowing Bitfinex to distribute its new insolvency onto the entire market. When Tether used to claim the had a 1:1 tether:$ backing it was a little easier to see why it was a fraud. By printing more Tether, Bitfinex increases this supply. According to an ongoing correlation that suggests Bitcoin pumps with each new chapter of the Tether saga, the leading cryptocurrency by market cap’s story in 2020 could be capped off with … Their hardware and electricity must be paid for with actual money. And then you have Diem/Libra coming soon which could eat up a lot of the market and will be interesting to watch. A person wants to hold a dollar denominated balance on an exchange that they can’t deposit to directly in anticipation of purchasing bitcoin in the near future and they don’t trust Bitfinex to stay in business or release their crypto. While moonbois are making assumptions all the time? A Giclee is characterized by smooth, gradual changes in tone and color. But of course Tether isn't offering that if it's a scam, or they're not offering it with sufficient robustness, so that's when the bank run will happen. Mathieu is a Information technology professional with over 15 years of experience. Now, remember that Tether and Bitfinx are the same entity (see Panama papers. A portion of those crypto goes onto their balance sheet to "back" the Tether just printed, the rest is sold on USD exchanges in order to generate USD. Now, you couldn't could cash out that much money from the stamp world, because it's an absurd bubble, but based on current stamp prices the nominal market camp of stamps is millions of quadrillions of dollars. But yeah, fraud happens, and if (when) the tether shit hits the fan, we'll see where the real dollars are. those berzerk arbitrage bots and hodlers blindly staring into space, [–]NonnoBomba 1 point2 points3 points 5 months ago (1 child). They don't need to be. Through a collaboration with acclaimed digital artist Doc […], [PRESS RELEASE – Milan, Italy, 19th May 2021]. It's been said by smarter people then me that all financial fraud has a basic similarity -- you're trying to paper over a hole where some money used to be. You can magic the UDST into existence, but you can't magic away the consequences. Likely USDT enters the market against loans. And they also might be ‘on the hook’ to criminal elements who hold tether or that they have other entanglements with. Yeah but, you know, hashrate & difficulty are a relevant parameter only inside a PoW blockchain, exchanges gambling over a plethora of stablecoins or stuff like Ripple (that I'd say don't even qualify as "crypto", technically, but scratches the same itches when gambling on exchanges is considered), plus any PoS creepto like EOS or -wait for it- Ethereum 2.0 -any moment now- would be unaffected by falling hashrates even when considering arbitrage bots moving tokens on-chain from one casino to another. However, the U.S. Dollar is not immune to shifts in the world market’s paradigm and as such, subject to fluctuation. Certain apps and features that require a Wi-Fi connection might not work while using a Personal Hotspot. [–]playingpoodles 1 point2 points3 points 5 months ago (0 children). Instead, USDT is a second-layer cryptocurrency that was built on top of the Bitcoin blockchain but now also functions on the Ethereum, Algorand, EOS, Tron, and OMG blockchains. Much like a central bank, Tether prints its coins. (Meaning the exchange doesn’t move bitcoin from their own wallet to Tether’s wallet). I think everyone else has described how the Tether scheme has always worked. PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC. This drives Tether’s value because Bitcoin was the most valuable crytpcourrency and Ethereum the second most valuable cryptourrency on 9 August 2019. Andrew Mangiapane Parents, Arlo Rise For Animals, Calgary Roughnecks Players, International Public Relations Salary, Long Volatility Reddit, Cotton Jersey Sheets, " /> | /r/spambotdetector | Optout | Original Github, [–]GoofyHumongous 1 point2 points3 points 5 months ago* (19 children). It's actually pretty normal for an entity like an exchange (or a bank) not to hold assets that perfectly match its liabilities, as long as they're liquid enough to cover them. An exchange with the ability to transact in dollars doesn’t need tether. Gox. Doesn't that mean Tether's scheme is working? The connection with the tale of the emperor's new clothes is that people assume that since everyone else buys in it is sane (and that reality is in some way suspended). But that just makes ballon bigger, which makes the water pressure bigger, which makes the holes rip open bigger, which makes the water flow out even faster, which makes you have to pump even more water in even faster. dunno). All the market maker bots will plug the hole in the order book with supporting buy orders and trading will resume at the higher price. Author David Gerard was quoted by the Wall Street Journal saying: Tether is sort of the central bank of crypto trading … [yet] they don’t conduct themselves like you’d expect a responsible, sensible financial institution to do. Eating the sell side of an order book makes the price go up. idk how they got that info, but assuming it's true, than it's pretty clear why they do it. right, so if every other actor had diamond hands... and 50B was sold.... no big deal. Get help with Personal Hotspot on your iOS device. So presumably the hashpower would roll back to the bare minimum necessary to keep what's left of the ecosystem alive: i.e. The T$ is created and backed by the loan, because the borrower can always give it back. Tether’s Technology Stack . But nonetheless I have some reservations and open questions. Tether printing moves the market appreciably; 48.8% of BTC’s price rise in the period studied occurred in the two-hour periods following the arrival of 91 different Tether grants to the Bitfinex wallet. Let's say the market for collectible stamps really explodes. (The Tether printer was quiet for about a week after the STABLE Act came out — and the price of Bitcoin slid down about $3,000.) The truth is that Tether provides important features such as instant transactions and cost-effectiveness. That's probably not even hard given how thinly USD/USDT are traded on exchanges. Also, the USDT supply figure has appreciated to the $10 billion mark. A laser printer is one of the most ingeniously designed electronic devices, whose working is based on the xerography or electrophotography. I know it's supposed to be dollars, but Bitcoin does have value. Some WiFi Dongles do not connect to the laptop or PC and operate independently to provide you with Wi-Fi internet using cellular data. By printing more Tether, Bitfinex increases this supply. That would line up with /u/sudospectral's 100,000 BTC number. [–]Street-Match 3 points4 points5 points 5 months ago (3 children). Or maybe Tether really does have the dollars, and the amount of dumb but very real fiat money in crypto ecosystem is more than we thought. So the number of tethers not in the hands of Bitfinex increases with the same magnitude as the total tether count. Setting up Your Network with Tether . This will cause the price to collapse, as everyone suddenly realizes at once that they aren't worth $1 each and they all try to sell at the same time. This is unavoidable, but it doesn't seem to be happening. Considering that the stablecoin’s price is pegged to the US dollar. So, while things certainly look like dangerous (look at the ever-accelerating parabolic printing), I doubt the crash down is imminent. I guess just I'm too tough to get cancer." Do exchanges in China not support Renminbi or do they just not support fiat currency trading as a rule? Also, if exchanges would going to engage in this kind of manipulation it seems like they could just do it Mt. Maybe like 20bn USDT worth. It is being loaned out to arbitrage bots. I have a hard time intuiting much here but it seems like there are only a couple of natural limits on Tether’s ability to issue tether backed by nothing: there has to be enough real currency (fiat) coming ‘in to the system’ to cover mining costs, there has to be enough fiat to absorb any tether that makes it to an exchange with a tether/fiat trading pair to maintain ‘the peg’. [–]accidentalclipboard 7 points8 points9 points 5 months ago (0 children), [–]FuckNewRedditPopups 2 points3 points4 points 5 months ago (8 children). Another issue is whether tether expects a loan to be paid back in tether or some other currency which complicates any reasoning about the situation. Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”). Tether Stablecoin Guide: How USDT Crypto Token Works Tether (USDT) stablecoin is one of the cryptocurrency market's biggest controversial topics in the bitcoin community. Bitfinex made BFX tokens tradable on their own platform (no conflict of interest there, I'm sure), where it traded far below par. The platform provides the foundation from which various digital assets supported. If tethered swimming is the option you pick for your swim workouts, it is a good choice. One observation is that their printing has diminishing returns, and they've been printing 500M per day this past week just to prop up the price above 19k. Which limit how much money an individual can moved out of the country. This competition will cause people to dump USDT. And the overall crypto ecosystem is cash insolvent and there certainly isn't $561B USD kicking around to back the market cap of crypto, so the whole thing is vulnerable to a bank run. The digital art piece links the digital and the physical worlds, elements of the animation are reflected in Angelo’s designs and vice versa. The fixing of Tether value to that of fiat currency is aimed at keeping cryptocurrencies valuation stable. Tether is a cryptocurrency with tokens issued by Tether Limited. Maybe there are other exchanges doing this conversion in the background. PdaNet+ offers Bluetooth and USB tethering on all Android phones, while its Wi-Fi tethering will only work on some phones. Even after the OTC crackdown in China. Because Bitcoin is volatile and is slower to transact, I would guess? The hardcore apologists argue that tether provides some kind of liquidity/fungibility at the exchange level. Tether may kill BTC and ETH before they manage to move to PoS. [–]DjangoWexler 48 points49 points50 points 5 months ago (71 children). These tasks are managed collectively by the network. https://en.wikipedia.org/wiki/The_Emperor%27s_New_Clothes#Plot, https://www.kalzumeus.com/2019/10/28/tether-and-bitfinex/, https://coinmarketcap.com/currencies/tether/, https://coinmarketcap.com/currencies/bitcoin/. This limits the amount of dollars needed to maintain the peg. ), [–]devliegende 2 points3 points4 points 5 months ago* (17 children). [–]RedPill43 1 point2 points3 points 5 months ago (0 children). Angelo Galasso will also refund the gas costs for the purchase of the NFT for in-person collections. I think they were forced into this scheme when they became insolvent and therefore can't meet redeem requests the normal way (i.e. Once that trust is lost, how could they ever get it back? Maybe sizable private entities with enough of a stake to be interested but not enough assets to just wash trade with their own funds? A person has dollars and wants to buy bitcoin. [–]b1daly 2 points3 points4 points 5 months ago (1 child). I'm glad to see this battle starting. Furthermore, they are forced to keep the printing/buying cycle going because that's the only way for them to extract real USD from the market - they can't sell the crypto on their balance sheet because that's gonna make some outstanding Tethers unbacked, increasing the chance that the entire thing collapses. I guess my thinking was naive and flawed there, but thanks for pointing that out. [–]devliegende 2 points3 points4 points 5 months ago (0 children). [–][deleted] 0 points1 point2 points 5 months ago (0 children). Gold’s 20% discount to its 2020 record high is sufficient for a resumption of a bull market for the metal, as we see it, but store-of-value newcomer Bitcoin is likely to remain a headwind to its upside.”. (The real … Or law enforcement. [–]Rainarrow 2 points3 points4 points 5 months ago (7 children). There's not 1 single account of anyone ever getting USD for their USDT from Tether. Luxury fashion brand Angelo Galasso is releasing its first collection of nonfungible tokens (NFT), which are designed to be sold alongside and reinforce the exclusivity of its handmade items by binding the digital and physical into a single bundle. If you can generate any income using those USDT, they are basically free money to you. Tether tokens exist as digital tokens built on bitcoin (Omni and Liquid Protocol), Ethereum, EOS, Tron, Algorand, SLP and OMG blockchains. It seems like minted Tether is always sent directly to exchanges (based on my memory of Whale Alert tweets). At some point though there's the lie that tethers are pinned to the USDT but Tether can't print USD and doesn't carry enough cash for the pin, its all backed by crypto-denominated debt. That'll create sell pressure on USDT, which will eventually break the USDT peg and expose the shenanigans Tether is running (if the shenanigan theories are correct). Tether is unlikely to collapse because the only way out is via Butts. $800m would wipe out the order book of every exchange down to -2% of the current price. How Does Flexography Work? So, most of the users got "paid back" very soon by selling those tokens to other users. It’s like a bitcoin, but with butts instead. The key element of the backpack and other fashion items in the collection is a finely engraved egg button detail, which mirrors the NFT art associated with the items. The USD has 2 uses: paying their fiat obligations (they are running a business after all which has real costs), and keep the Tether peg at 1:1. Literally the same group of people), and that entity has been insolvent since August (likely for much longer, it's just it's becoming harder for them to cover it up). For instance, USD, Euro, and Japanese Yen among others. Tether (USDT) is a collateralised stablecoin cryptocurrency. Tether does this by minting and destroying tokens. BTC can continue as long as there are suckers willing to hodl or buy. When it drops low enough that miners can't cover their expenses via mining revenues, the fun really starts. They're probably not solvent and never were. Then the next, and the next, until all your BTC have sold. There is none. That would place it in the top 200 of the NYSE. Moreover, the bank analysts highlighted that allocating funds from gold to BTC will ”represent the transfer of billions of cash.” They further asserted that the precious metal will suffer because of bitcoin: ”The adoption of bitcoin by institutional investors has only begun, while for gold, its adoption by institutional investors is very advanced. If the question was: does it seem plausible that such a company was holding ~$4b in banks somewhere? If BTC/USD falls precipitously as it did during Mt. It would be closer to 1m BTC to back current issuance of tether and given recent price history more than that. Now you take your 900 billion USDT and spend a year slowly buying up BTC on the BTC/USDT exchanges. There must be something we are not seeing here. Other items include a finely designed crypto credit card wallet and a key or hardware wallet ring, both including the iconic egg button detail. Animation by @flashtrader1. Tether’s run of printing USDT by the billions seems to have slowed, but it’s worth keeping an eye out for new grants hitting the market. And as the "market cap" doubles without doubling the amount of cash on hand at the exchange the whole thing becomes even more cash insolvent. The impetus would be lost. Maybe the market makers in stablecoin markets are the exchanges themselves. So what's the limitation of this scheme? If Bitcoin reacts to the recent substantial printing of more Tether stablecoins the same as it has in the past, we may finally have a catalyst for the crypto asset retesting its former all-time high.. I think the scam which keeps Tether from dropping in price is the claim that it is a "stable coin" which is backed by U.S. dollars (or anything else). The fractional reserve. In Asia (mainly in China), OTC desks provide majority of the liquidity of CNY <-> USDT trades because exchanges can't operate there. IMO TUSD is the best from a technical/innovation PoV. There are legitimate market makers on the USDT/USD pair on Kraken, or on the USDT/USDC pair on Poloniex, or whatever. Coinbase is down, people are going crazy with conspiracy theories, Tether peg is breaking (at time of post, 1USDT = 0.9488USD). [–]DjangoWexler 0 points1 point2 points 4 months ago (0 children). Lenders always come back as soon as things are stable again. Many industry commentators believe that the company is responsible for artificially inflating the price of Bitcoin. Over time USDC ought to suck up the market share of people doing anything even semi legitimate with fiat-backed stablecoins. I think they were certainly involved in price manipulation which fueled the bull run. This seems rather unlikely to me. It is basically the same pool of arbitrage bots and Tether is their liquidity fuel. They want their USD, and they can't get it. the last transaction made) So there are $13m worth of orders that would buy BTC if the price dropped down to $51,067. This has been unthinkable for a long time. It does not have its own blockchain, but rather functions within Bitcoin’s script as a second-level currency. Tether was launched in July 2014 as “Realcoin”, and repositioned as Tether in November of that year by “Tether Ltd”. I don't think that growth is all real dollars, but I could be wrong. Hell Tether's own terms and conditions says they don't even have to honour the conversion if they don't want to (see sections 3 and 5). Tethering with Third-Party Apps: Download a third-party app. Lately I'm wondering if maybe the exchanges are major players are themselves are running market making bots being run on USDT/USD and USDT/USDC pairs. I don’t know, The whole thing doesn’t add up. If USDT were to abruptly become worthless, then the "monetary base" supporting the price of BTC would have shrunk enormously overnight. I'm sure they exist, but I don't hang out on crypto YouTube, you'd have to go looking! When things go south, though, it all collapses. use the following search parameters to narrow your results: This is not /r/Bitcoin. Tether printer go brrrrr until exchange go boom. So if you’re a Bitcoin believer, just follow the Tether printer and watch the printing. If you didn't buy the USDT to begin with, there's 0 pressure to redeem - you just give them back to Tether when you are done. The easiest way for people to get out of tether is to trade it for crypto. Completely thin air. It formerly claimed that each token was backed by one United States dollar, but on 14 March 2019 changed the backing to include loans to affiliate companies. The Genesis collection is being auctioned on OpenSea, with items expected to sell out quickly. Doesn't this assume that the loans are backed 1-1? Those people use USDT to buy up Bitcoin on exchanges that have BTC/USDT pairs. Its the same people who have been trading BTC and USDT backwards and forwards. However, it's known that Coinbase had a Bitfinex account in 2016 before the Bitfinex hack happened (they were the only one that didn't get the 36% haircut). Tether Stablecoin Guide: How USDT Crypto Token Works Tether (USDT) stablecoin is one of the cryptocurrency market's biggest controversial topics in the bitcoin community. So what’s the end game? How does a WiFi Dongle work? In case it's a long time since you read it, the synopsis on Wikipedia is quite good: https://en.wikipedia.org/wiki/The_Emperor%27s_New_Clothes#Plot, [–]SixLegsGood 2 points3 points4 points 5 months ago (2 children). [–]devliegende 1 point2 points3 points 5 months ago (13 children). Tether prints USDT, unbacked, and distributes it to whoever. Tether is a member of the stablecoins family. But in this case the system depends on the price of BTC staying above the price it was when the borrowers short sold their borrowed USDT. To accomplish this task, Hong-Kong based Tether Limited originally claimed that for every ASDT issued, the firm held an equivalent amount of dollars kept in reserve. [–]DjangoWexler 1 point2 points3 points 5 months ago (14 children). [–]b1daly 1 point2 points3 points 5 months ago* (5 children). However, the chief commodity strategist at Bloomberg – Mike McGlone – took a different stance from the forecast of JP Morgan’s experts. But Bitfinex supports dollar based balances. Angelo Galasso was born in the South of Italy with design and a strong flair for tailoring in his blood. You c an use your phone's mobile data to connect another phone, tablet, or computer to the internet. [–]vslashg 2 points3 points4 points 5 months ago (0 children). You are right - whoever ended up with those Tether bags will want to redeem at some point, I don't know how I wasn't able to see that. Being backed by the USD means for every Tether issued, there is an equivalent amount of dollars kept in reserve. In the early days, Tether claimed that every tether In the case of BTC, I think you buy from OTC and just HODL. and the entire BTC economy probably comes down with it. But since they do not actually have anywhere close to enough dollars, when the wave gets high enough they go under with it. Flexography, also known as Flexo printing or surface printing, works … The limits on this scheme is that at a certain point people will be less and less willing to send fiat to Bitfinex and my guess is that point has been more or less reached. The exchange has to sell Tether and buy dollars. What they pay in exchange of those USDT is a myth though, and I'm leaning to them taking the USDT as a loan instead of buying them. As long as this liquidity could absorb the selling pressure of people cashing out, Tether itself doesn't even need to pay a single dollar to anyone. A lot of trading is done with them so clearly people will accept them in exchange for their crypto. REDDIT and the ALIEN Logo are registered trademarks of reddit inc. π Rendered by PID 32715 on r2-app-050fa4615154e00fc at 2021-05-19 18:19:04.905589+00:00 running 9385e0c country code: US. I don't think it works exactly like that though anymore. Imagine if you live in a country with no access to USD or exchanges, like China. People are more likely to FOMO in if everyone is expecting the ATH be broken and big moves after that. I didn't realize the USDC market cap was going up so much lately. Well, if an exchange offers USD accounts and USD withdrawal to bank accounts, and than don't actually hold the USD you deposit there but swap it for other assets, then they are a fraud anyway (even if the other asset is supposed to be pegged to USD). Those are two distinct assets. If the loan was to be repaid with dollars then Tether would have the dollars to cover redemptions. More money chasing the same amount of BTC means the BTC price goes up. I will summarize the conversation so far: I don't have a response to this. You can see it there on coinmarketcap. This suggests that Tether is actually not printing fast enough, as ridiculous as that is. I mean, the first effect is that basically all the current exchanges would collapse, because USDT is a reserve asset. The difference this time around is the block reward is much less. I didn't quite have it straight in my head either, until these questions forced me to think it through. The existence of USDC has removed some of that friction, though. But if they stop printing be wary of the downside if there isn’t that injection of USDT coming so regularly. In November 2017 after the merger (FORK) the system was hacked and $ 31 million was stolen. It is common knowledge that popular cryptocurrencies such as Bitcoin and Ethereum are quite volatile, hence experience wide swings in prices. The Swim Tether brand of tethered swimming devices is solid, comfortable, and portable. Me: No, Tether is like the USD ledger values on Mt. Buying lots of bitcoins openly on an exchange wouldn't drive up the price pair due to a mathematical function... That's exactly what it will do. Tether, or USTD, is a blockchain-based digital currency. How does tethering work? Whenever two orders match, a trade occurs. Bitfinex eventually bought back all BFX tokens but likely did this by buying them up when it traded sub-par. That's not what I mean. [–]SnapshillBot 5 points6 points7 points 5 months ago (3 children), I disagree. It brings in more cash that doesn't know or doesn't care about Tether risk. [–]Eu-is-socialist 1 point2 points3 points 5 months ago (0 children). It also means there's a good chance that they could somehow "save" it again this time and keep everything going for an indefinite amount of time. If there's no interest in buying at that price level then sell pressure will eventually push it back down, sure, but the initial rising effect is still the same. It's more or less the same as a Madoff-style Ponzi scheme -- as long as times remain good, the incoming money can let you cover the promises you made to the last group of "investors". Tether will see all the redemption requests from the good faith actors that ended up holding the USDT bags. I'd particularly like to see what will happen if on-ramps and/or off-ramps to the game are made illegal and forcefully closed, so NO real money can enter it. You don't have the 900 billion USDT to give back, though. It was probably sometime soon after this that Tether's mission changed to allowing Bitfinex to distribute its new insolvency onto the entire market. When Tether used to claim the had a 1:1 tether:$ backing it was a little easier to see why it was a fraud. By printing more Tether, Bitfinex increases this supply. According to an ongoing correlation that suggests Bitcoin pumps with each new chapter of the Tether saga, the leading cryptocurrency by market cap’s story in 2020 could be capped off with … Their hardware and electricity must be paid for with actual money. And then you have Diem/Libra coming soon which could eat up a lot of the market and will be interesting to watch. A person wants to hold a dollar denominated balance on an exchange that they can’t deposit to directly in anticipation of purchasing bitcoin in the near future and they don’t trust Bitfinex to stay in business or release their crypto. While moonbois are making assumptions all the time? A Giclee is characterized by smooth, gradual changes in tone and color. But of course Tether isn't offering that if it's a scam, or they're not offering it with sufficient robustness, so that's when the bank run will happen. Mathieu is a Information technology professional with over 15 years of experience. Now, remember that Tether and Bitfinx are the same entity (see Panama papers. A portion of those crypto goes onto their balance sheet to "back" the Tether just printed, the rest is sold on USD exchanges in order to generate USD. Now, you couldn't could cash out that much money from the stamp world, because it's an absurd bubble, but based on current stamp prices the nominal market camp of stamps is millions of quadrillions of dollars. But yeah, fraud happens, and if (when) the tether shit hits the fan, we'll see where the real dollars are. those berzerk arbitrage bots and hodlers blindly staring into space, [–]NonnoBomba 1 point2 points3 points 5 months ago (1 child). They don't need to be. Through a collaboration with acclaimed digital artist Doc […], [PRESS RELEASE – Milan, Italy, 19th May 2021]. It's been said by smarter people then me that all financial fraud has a basic similarity -- you're trying to paper over a hole where some money used to be. You can magic the UDST into existence, but you can't magic away the consequences. Likely USDT enters the market against loans. And they also might be ‘on the hook’ to criminal elements who hold tether or that they have other entanglements with. Yeah but, you know, hashrate & difficulty are a relevant parameter only inside a PoW blockchain, exchanges gambling over a plethora of stablecoins or stuff like Ripple (that I'd say don't even qualify as "crypto", technically, but scratches the same itches when gambling on exchanges is considered), plus any PoS creepto like EOS or -wait for it- Ethereum 2.0 -any moment now- would be unaffected by falling hashrates even when considering arbitrage bots moving tokens on-chain from one casino to another. However, the U.S. Dollar is not immune to shifts in the world market’s paradigm and as such, subject to fluctuation. Certain apps and features that require a Wi-Fi connection might not work while using a Personal Hotspot. [–]playingpoodles 1 point2 points3 points 5 months ago (0 children). Instead, USDT is a second-layer cryptocurrency that was built on top of the Bitcoin blockchain but now also functions on the Ethereum, Algorand, EOS, Tron, and OMG blockchains. Much like a central bank, Tether prints its coins. (Meaning the exchange doesn’t move bitcoin from their own wallet to Tether’s wallet). I think everyone else has described how the Tether scheme has always worked. PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC. This drives Tether’s value because Bitcoin was the most valuable crytpcourrency and Ethereum the second most valuable cryptourrency on 9 August 2019. Andrew Mangiapane Parents, Arlo Rise For Animals, Calgary Roughnecks Players, International Public Relations Salary, Long Volatility Reddit, Cotton Jersey Sheets, " />
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Isn't the theory that USDT of dubious origin is being used to pump the BTC price to a new ATH? This is a recipe for fraud so blatant that really the only explanation that survives is that there are enough entities with vested interest in maintaining the fiction as long as humanly possible. We know that real money is entering the system, because real money is necessarily exiting the system where miners must pay their costs. Bitfinex's innovation was to continue operating, and to issue a BFX token that represented their shortfall. So you sell the BTC to pay back your USDT loan. The bulk of big tether holders are likely to be exchanges (especially the sketchy ones who have no regular banking links). While BTC’s price sunk to $30,000, the value of the yellow metal became very tempting, rising by 6% since the beginning of May. Master The Crypto put together a three-part guide for you to review to better understand Tether, how Stablecoins work and the Bitfinex association/price manipulation drama. If not, it's better to just stiff your creditors. Exchanges heavily exposed to USDE go under. The size of the tether market cap -- measured in BTC -- is the size of the decentralized arbitrage bot market-pumping scheme. Countries have the advantages of being backed up by labour, land and armies, they are not similar to coins and corporations! After that, they were forced to "raise" money (USD) in order to keep going, and eventually had to resort to the parabolic printing we are seeing now. This is the opposite of what you'd expect. Why even bother. (Or it's a margin long bet on BTC/USDT; whether it's a short sale or a leveraged long depends on if you're looking at the USDT/BTC graph or the BTC/USDT graph, but either way it's the same market mechanics in the end). Okay, so, the basics (n.b. Tether/Bitfinex is a ‘black box’ so until/when they are forced to spill the beans it’s hard to say. Each wireless carrier has different rules and service plans for tethering, and each cell phone device may have its own limitations. But it has to happen at an increasing rate to cover the hole where Tether's reserves should be. How Tether Works. Yes, I can print 70,000,000,000 GoofyHumongous bucks, and offer to exchange them for $10 a piece. And if they do convert, that move would deprive these coins of the decentralization allure hodles mostly fall for. Just to add another point: Lately I'm wondering if maybe the exchanges and major players are themselves are running market making bots on USDT/USD and USDT/USDC pairs. Essentially once they have issued the tether, it’s someone else’s problem. So out of thin air, both Shady-guy and Tether-printer have made 650k each, with the FOMO butters as their bag holders. Correct Answer: Can somehow explain to me how "tethering" workd on the Droid Ultra? How to tether your cell phone largely depends on your cell phone service provider and your cell phone model. I am a neural network being trained to detect spammers | Summon me with !isbot | /r/spambotdetector | Optout | Original Github, [–]GoofyHumongous 1 point2 points3 points 5 months ago* (19 children). It's actually pretty normal for an entity like an exchange (or a bank) not to hold assets that perfectly match its liabilities, as long as they're liquid enough to cover them. An exchange with the ability to transact in dollars doesn’t need tether. Gox. Doesn't that mean Tether's scheme is working? The connection with the tale of the emperor's new clothes is that people assume that since everyone else buys in it is sane (and that reality is in some way suspended). But that just makes ballon bigger, which makes the water pressure bigger, which makes the holes rip open bigger, which makes the water flow out even faster, which makes you have to pump even more water in even faster. dunno). All the market maker bots will plug the hole in the order book with supporting buy orders and trading will resume at the higher price. Author David Gerard was quoted by the Wall Street Journal saying: Tether is sort of the central bank of crypto trading … [yet] they don’t conduct themselves like you’d expect a responsible, sensible financial institution to do. Eating the sell side of an order book makes the price go up. idk how they got that info, but assuming it's true, than it's pretty clear why they do it. right, so if every other actor had diamond hands... and 50B was sold.... no big deal. Get help with Personal Hotspot on your iOS device. So presumably the hashpower would roll back to the bare minimum necessary to keep what's left of the ecosystem alive: i.e. The T$ is created and backed by the loan, because the borrower can always give it back. Tether’s Technology Stack . But nonetheless I have some reservations and open questions. Tether printing moves the market appreciably; 48.8% of BTC’s price rise in the period studied occurred in the two-hour periods following the arrival of 91 different Tether grants to the Bitfinex wallet. Let's say the market for collectible stamps really explodes. (The Tether printer was quiet for about a week after the STABLE Act came out — and the price of Bitcoin slid down about $3,000.) The truth is that Tether provides important features such as instant transactions and cost-effectiveness. That's probably not even hard given how thinly USD/USDT are traded on exchanges. Also, the USDT supply figure has appreciated to the $10 billion mark. A laser printer is one of the most ingeniously designed electronic devices, whose working is based on the xerography or electrophotography. I know it's supposed to be dollars, but Bitcoin does have value. Some WiFi Dongles do not connect to the laptop or PC and operate independently to provide you with Wi-Fi internet using cellular data. By printing more Tether, Bitfinex increases this supply. That would line up with /u/sudospectral's 100,000 BTC number. [–]Street-Match 3 points4 points5 points 5 months ago (3 children). Or maybe Tether really does have the dollars, and the amount of dumb but very real fiat money in crypto ecosystem is more than we thought. So the number of tethers not in the hands of Bitfinex increases with the same magnitude as the total tether count. Setting up Your Network with Tether . This will cause the price to collapse, as everyone suddenly realizes at once that they aren't worth $1 each and they all try to sell at the same time. This is unavoidable, but it doesn't seem to be happening. Considering that the stablecoin’s price is pegged to the US dollar. So, while things certainly look like dangerous (look at the ever-accelerating parabolic printing), I doubt the crash down is imminent. I guess just I'm too tough to get cancer." Do exchanges in China not support Renminbi or do they just not support fiat currency trading as a rule? Also, if exchanges would going to engage in this kind of manipulation it seems like they could just do it Mt. Maybe like 20bn USDT worth. It is being loaned out to arbitrage bots. I have a hard time intuiting much here but it seems like there are only a couple of natural limits on Tether’s ability to issue tether backed by nothing: there has to be enough real currency (fiat) coming ‘in to the system’ to cover mining costs, there has to be enough fiat to absorb any tether that makes it to an exchange with a tether/fiat trading pair to maintain ‘the peg’. [–]accidentalclipboard 7 points8 points9 points 5 months ago (0 children), [–]FuckNewRedditPopups 2 points3 points4 points 5 months ago (8 children). Another issue is whether tether expects a loan to be paid back in tether or some other currency which complicates any reasoning about the situation. Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”). Tether Stablecoin Guide: How USDT Crypto Token Works Tether (USDT) stablecoin is one of the cryptocurrency market's biggest controversial topics in the bitcoin community. Bitfinex made BFX tokens tradable on their own platform (no conflict of interest there, I'm sure), where it traded far below par. The platform provides the foundation from which various digital assets supported. If tethered swimming is the option you pick for your swim workouts, it is a good choice. One observation is that their printing has diminishing returns, and they've been printing 500M per day this past week just to prop up the price above 19k. Which limit how much money an individual can moved out of the country. This competition will cause people to dump USDT. And the overall crypto ecosystem is cash insolvent and there certainly isn't $561B USD kicking around to back the market cap of crypto, so the whole thing is vulnerable to a bank run. The digital art piece links the digital and the physical worlds, elements of the animation are reflected in Angelo’s designs and vice versa. The fixing of Tether value to that of fiat currency is aimed at keeping cryptocurrencies valuation stable. Tether is a cryptocurrency with tokens issued by Tether Limited. Maybe there are other exchanges doing this conversion in the background. PdaNet+ offers Bluetooth and USB tethering on all Android phones, while its Wi-Fi tethering will only work on some phones. Even after the OTC crackdown in China. Because Bitcoin is volatile and is slower to transact, I would guess? The hardcore apologists argue that tether provides some kind of liquidity/fungibility at the exchange level. Tether may kill BTC and ETH before they manage to move to PoS. [–]DjangoWexler 48 points49 points50 points 5 months ago (71 children). These tasks are managed collectively by the network. https://en.wikipedia.org/wiki/The_Emperor%27s_New_Clothes#Plot, https://www.kalzumeus.com/2019/10/28/tether-and-bitfinex/, https://coinmarketcap.com/currencies/tether/, https://coinmarketcap.com/currencies/bitcoin/. This limits the amount of dollars needed to maintain the peg. ), [–]devliegende 2 points3 points4 points 5 months ago* (17 children). [–]RedPill43 1 point2 points3 points 5 months ago (0 children). Angelo Galasso will also refund the gas costs for the purchase of the NFT for in-person collections. I think they were forced into this scheme when they became insolvent and therefore can't meet redeem requests the normal way (i.e. Once that trust is lost, how could they ever get it back? Maybe sizable private entities with enough of a stake to be interested but not enough assets to just wash trade with their own funds? A person has dollars and wants to buy bitcoin. [–]b1daly 2 points3 points4 points 5 months ago (1 child). I'm glad to see this battle starting. Furthermore, they are forced to keep the printing/buying cycle going because that's the only way for them to extract real USD from the market - they can't sell the crypto on their balance sheet because that's gonna make some outstanding Tethers unbacked, increasing the chance that the entire thing collapses. I guess my thinking was naive and flawed there, but thanks for pointing that out. [–]devliegende 2 points3 points4 points 5 months ago (0 children). [–][deleted] 0 points1 point2 points 5 months ago (0 children). Gold’s 20% discount to its 2020 record high is sufficient for a resumption of a bull market for the metal, as we see it, but store-of-value newcomer Bitcoin is likely to remain a headwind to its upside.”. (The real … Or law enforcement. [–]Rainarrow 2 points3 points4 points 5 months ago (7 children). There's not 1 single account of anyone ever getting USD for their USDT from Tether. Luxury fashion brand Angelo Galasso is releasing its first collection of nonfungible tokens (NFT), which are designed to be sold alongside and reinforce the exclusivity of its handmade items by binding the digital and physical into a single bundle. If you can generate any income using those USDT, they are basically free money to you. Tether tokens exist as digital tokens built on bitcoin (Omni and Liquid Protocol), Ethereum, EOS, Tron, Algorand, SLP and OMG blockchains. It seems like minted Tether is always sent directly to exchanges (based on my memory of Whale Alert tweets). At some point though there's the lie that tethers are pinned to the USDT but Tether can't print USD and doesn't carry enough cash for the pin, its all backed by crypto-denominated debt. That'll create sell pressure on USDT, which will eventually break the USDT peg and expose the shenanigans Tether is running (if the shenanigan theories are correct). Tether is unlikely to collapse because the only way out is via Butts. $800m would wipe out the order book of every exchange down to -2% of the current price. How Does Flexography Work? So, most of the users got "paid back" very soon by selling those tokens to other users. It’s like a bitcoin, but with butts instead. The key element of the backpack and other fashion items in the collection is a finely engraved egg button detail, which mirrors the NFT art associated with the items. The USD has 2 uses: paying their fiat obligations (they are running a business after all which has real costs), and keep the Tether peg at 1:1. Literally the same group of people), and that entity has been insolvent since August (likely for much longer, it's just it's becoming harder for them to cover it up). For instance, USD, Euro, and Japanese Yen among others. Tether (USDT) is a collateralised stablecoin cryptocurrency. Tether does this by minting and destroying tokens. BTC can continue as long as there are suckers willing to hodl or buy. When it drops low enough that miners can't cover their expenses via mining revenues, the fun really starts. They're probably not solvent and never were. Then the next, and the next, until all your BTC have sold. There is none. That would place it in the top 200 of the NYSE. Moreover, the bank analysts highlighted that allocating funds from gold to BTC will ”represent the transfer of billions of cash.” They further asserted that the precious metal will suffer because of bitcoin: ”The adoption of bitcoin by institutional investors has only begun, while for gold, its adoption by institutional investors is very advanced. If the question was: does it seem plausible that such a company was holding ~$4b in banks somewhere? If BTC/USD falls precipitously as it did during Mt. It would be closer to 1m BTC to back current issuance of tether and given recent price history more than that. Now you take your 900 billion USDT and spend a year slowly buying up BTC on the BTC/USDT exchanges. There must be something we are not seeing here. Other items include a finely designed crypto credit card wallet and a key or hardware wallet ring, both including the iconic egg button detail. Animation by @flashtrader1. Tether’s run of printing USDT by the billions seems to have slowed, but it’s worth keeping an eye out for new grants hitting the market. And as the "market cap" doubles without doubling the amount of cash on hand at the exchange the whole thing becomes even more cash insolvent. The impetus would be lost. Maybe the market makers in stablecoin markets are the exchanges themselves. So what's the limitation of this scheme? If Bitcoin reacts to the recent substantial printing of more Tether stablecoins the same as it has in the past, we may finally have a catalyst for the crypto asset retesting its former all-time high.. I think the scam which keeps Tether from dropping in price is the claim that it is a "stable coin" which is backed by U.S. dollars (or anything else). The fractional reserve. In Asia (mainly in China), OTC desks provide majority of the liquidity of CNY <-> USDT trades because exchanges can't operate there. IMO TUSD is the best from a technical/innovation PoV. There are legitimate market makers on the USDT/USD pair on Kraken, or on the USDT/USDC pair on Poloniex, or whatever. Coinbase is down, people are going crazy with conspiracy theories, Tether peg is breaking (at time of post, 1USDT = 0.9488USD). [–]DjangoWexler 0 points1 point2 points 4 months ago (0 children). Lenders always come back as soon as things are stable again. Many industry commentators believe that the company is responsible for artificially inflating the price of Bitcoin. Over time USDC ought to suck up the market share of people doing anything even semi legitimate with fiat-backed stablecoins. I think they were certainly involved in price manipulation which fueled the bull run. This seems rather unlikely to me. It is basically the same pool of arbitrage bots and Tether is their liquidity fuel. They want their USD, and they can't get it. the last transaction made) So there are $13m worth of orders that would buy BTC if the price dropped down to $51,067. This has been unthinkable for a long time. It does not have its own blockchain, but rather functions within Bitcoin’s script as a second-level currency. Tether was launched in July 2014 as “Realcoin”, and repositioned as Tether in November of that year by “Tether Ltd”. I don't think that growth is all real dollars, but I could be wrong. Hell Tether's own terms and conditions says they don't even have to honour the conversion if they don't want to (see sections 3 and 5). Tethering with Third-Party Apps: Download a third-party app. Lately I'm wondering if maybe the exchanges are major players are themselves are running market making bots being run on USDT/USD and USDT/USDC pairs. I don’t know, The whole thing doesn’t add up. If USDT were to abruptly become worthless, then the "monetary base" supporting the price of BTC would have shrunk enormously overnight. I'm sure they exist, but I don't hang out on crypto YouTube, you'd have to go looking! When things go south, though, it all collapses. use the following search parameters to narrow your results: This is not /r/Bitcoin. Tether printer go brrrrr until exchange go boom. So if you’re a Bitcoin believer, just follow the Tether printer and watch the printing. If you didn't buy the USDT to begin with, there's 0 pressure to redeem - you just give them back to Tether when you are done. The easiest way for people to get out of tether is to trade it for crypto. Completely thin air. It formerly claimed that each token was backed by one United States dollar, but on 14 March 2019 changed the backing to include loans to affiliate companies. The Genesis collection is being auctioned on OpenSea, with items expected to sell out quickly. Doesn't this assume that the loans are backed 1-1? Those people use USDT to buy up Bitcoin on exchanges that have BTC/USDT pairs. Its the same people who have been trading BTC and USDT backwards and forwards. However, it's known that Coinbase had a Bitfinex account in 2016 before the Bitfinex hack happened (they were the only one that didn't get the 36% haircut). Tether Stablecoin Guide: How USDT Crypto Token Works Tether (USDT) stablecoin is one of the cryptocurrency market's biggest controversial topics in the bitcoin community. So what’s the end game? How does a WiFi Dongle work? In case it's a long time since you read it, the synopsis on Wikipedia is quite good: https://en.wikipedia.org/wiki/The_Emperor%27s_New_Clothes#Plot, [–]SixLegsGood 2 points3 points4 points 5 months ago (2 children). [–]devliegende 1 point2 points3 points 5 months ago (13 children). Tether prints USDT, unbacked, and distributes it to whoever. Tether is a member of the stablecoins family. But in this case the system depends on the price of BTC staying above the price it was when the borrowers short sold their borrowed USDT. To accomplish this task, Hong-Kong based Tether Limited originally claimed that for every ASDT issued, the firm held an equivalent amount of dollars kept in reserve. [–]DjangoWexler 1 point2 points3 points 5 months ago (14 children). [–]b1daly 1 point2 points3 points 5 months ago* (5 children). However, the chief commodity strategist at Bloomberg – Mike McGlone – took a different stance from the forecast of JP Morgan’s experts. But Bitfinex supports dollar based balances. Angelo Galasso was born in the South of Italy with design and a strong flair for tailoring in his blood. You c an use your phone's mobile data to connect another phone, tablet, or computer to the internet. [–]vslashg 2 points3 points4 points 5 months ago (0 children). You are right - whoever ended up with those Tether bags will want to redeem at some point, I don't know how I wasn't able to see that. Being backed by the USD means for every Tether issued, there is an equivalent amount of dollars kept in reserve. In the early days, Tether claimed that every tether In the case of BTC, I think you buy from OTC and just HODL. and the entire BTC economy probably comes down with it. But since they do not actually have anywhere close to enough dollars, when the wave gets high enough they go under with it. Flexography, also known as Flexo printing or surface printing, works … The limits on this scheme is that at a certain point people will be less and less willing to send fiat to Bitfinex and my guess is that point has been more or less reached. The exchange has to sell Tether and buy dollars. What they pay in exchange of those USDT is a myth though, and I'm leaning to them taking the USDT as a loan instead of buying them. As long as this liquidity could absorb the selling pressure of people cashing out, Tether itself doesn't even need to pay a single dollar to anyone. A lot of trading is done with them so clearly people will accept them in exchange for their crypto. REDDIT and the ALIEN Logo are registered trademarks of reddit inc. π Rendered by PID 32715 on r2-app-050fa4615154e00fc at 2021-05-19 18:19:04.905589+00:00 running 9385e0c country code: US. I don't think it works exactly like that though anymore. Imagine if you live in a country with no access to USD or exchanges, like China. People are more likely to FOMO in if everyone is expecting the ATH be broken and big moves after that. I didn't realize the USDC market cap was going up so much lately. Well, if an exchange offers USD accounts and USD withdrawal to bank accounts, and than don't actually hold the USD you deposit there but swap it for other assets, then they are a fraud anyway (even if the other asset is supposed to be pegged to USD). Those are two distinct assets. If the loan was to be repaid with dollars then Tether would have the dollars to cover redemptions. More money chasing the same amount of BTC means the BTC price goes up. I will summarize the conversation so far: I don't have a response to this. You can see it there on coinmarketcap. This suggests that Tether is actually not printing fast enough, as ridiculous as that is. I mean, the first effect is that basically all the current exchanges would collapse, because USDT is a reserve asset. The difference this time around is the block reward is much less. I didn't quite have it straight in my head either, until these questions forced me to think it through. The existence of USDC has removed some of that friction, though. But if they stop printing be wary of the downside if there isn’t that injection of USDT coming so regularly. In November 2017 after the merger (FORK) the system was hacked and $ 31 million was stolen. It is common knowledge that popular cryptocurrencies such as Bitcoin and Ethereum are quite volatile, hence experience wide swings in prices. The Swim Tether brand of tethered swimming devices is solid, comfortable, and portable. Me: No, Tether is like the USD ledger values on Mt. Buying lots of bitcoins openly on an exchange wouldn't drive up the price pair due to a mathematical function... That's exactly what it will do. Tether, or USTD, is a blockchain-based digital currency. How does tethering work? Whenever two orders match, a trade occurs. Bitfinex eventually bought back all BFX tokens but likely did this by buying them up when it traded sub-par. That's not what I mean. [–]SnapshillBot 5 points6 points7 points 5 months ago (3 children), I disagree. It brings in more cash that doesn't know or doesn't care about Tether risk. [–]Eu-is-socialist 1 point2 points3 points 5 months ago (0 children). It also means there's a good chance that they could somehow "save" it again this time and keep everything going for an indefinite amount of time. If there's no interest in buying at that price level then sell pressure will eventually push it back down, sure, but the initial rising effect is still the same. It's more or less the same as a Madoff-style Ponzi scheme -- as long as times remain good, the incoming money can let you cover the promises you made to the last group of "investors". Tether will see all the redemption requests from the good faith actors that ended up holding the USDT bags. I'd particularly like to see what will happen if on-ramps and/or off-ramps to the game are made illegal and forcefully closed, so NO real money can enter it. You don't have the 900 billion USDT to give back, though. It was probably sometime soon after this that Tether's mission changed to allowing Bitfinex to distribute its new insolvency onto the entire market. When Tether used to claim the had a 1:1 tether:$ backing it was a little easier to see why it was a fraud. By printing more Tether, Bitfinex increases this supply. According to an ongoing correlation that suggests Bitcoin pumps with each new chapter of the Tether saga, the leading cryptocurrency by market cap’s story in 2020 could be capped off with … Their hardware and electricity must be paid for with actual money. And then you have Diem/Libra coming soon which could eat up a lot of the market and will be interesting to watch. A person wants to hold a dollar denominated balance on an exchange that they can’t deposit to directly in anticipation of purchasing bitcoin in the near future and they don’t trust Bitfinex to stay in business or release their crypto. While moonbois are making assumptions all the time? A Giclee is characterized by smooth, gradual changes in tone and color. But of course Tether isn't offering that if it's a scam, or they're not offering it with sufficient robustness, so that's when the bank run will happen. Mathieu is a Information technology professional with over 15 years of experience. Now, remember that Tether and Bitfinx are the same entity (see Panama papers. A portion of those crypto goes onto their balance sheet to "back" the Tether just printed, the rest is sold on USD exchanges in order to generate USD. Now, you couldn't could cash out that much money from the stamp world, because it's an absurd bubble, but based on current stamp prices the nominal market camp of stamps is millions of quadrillions of dollars. But yeah, fraud happens, and if (when) the tether shit hits the fan, we'll see where the real dollars are. those berzerk arbitrage bots and hodlers blindly staring into space, [–]NonnoBomba 1 point2 points3 points 5 months ago (1 child). They don't need to be. Through a collaboration with acclaimed digital artist Doc […], [PRESS RELEASE – Milan, Italy, 19th May 2021]. It's been said by smarter people then me that all financial fraud has a basic similarity -- you're trying to paper over a hole where some money used to be. You can magic the UDST into existence, but you can't magic away the consequences. Likely USDT enters the market against loans. And they also might be ‘on the hook’ to criminal elements who hold tether or that they have other entanglements with. Yeah but, you know, hashrate & difficulty are a relevant parameter only inside a PoW blockchain, exchanges gambling over a plethora of stablecoins or stuff like Ripple (that I'd say don't even qualify as "crypto", technically, but scratches the same itches when gambling on exchanges is considered), plus any PoS creepto like EOS or -wait for it- Ethereum 2.0 -any moment now- would be unaffected by falling hashrates even when considering arbitrage bots moving tokens on-chain from one casino to another. However, the U.S. Dollar is not immune to shifts in the world market’s paradigm and as such, subject to fluctuation. Certain apps and features that require a Wi-Fi connection might not work while using a Personal Hotspot. [–]playingpoodles 1 point2 points3 points 5 months ago (0 children). Instead, USDT is a second-layer cryptocurrency that was built on top of the Bitcoin blockchain but now also functions on the Ethereum, Algorand, EOS, Tron, and OMG blockchains. Much like a central bank, Tether prints its coins. (Meaning the exchange doesn’t move bitcoin from their own wallet to Tether’s wallet). I think everyone else has described how the Tether scheme has always worked. PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC. This drives Tether’s value because Bitcoin was the most valuable crytpcourrency and Ethereum the second most valuable cryptourrency on 9 August 2019.

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