[2019-07-10]Bitfinex and Tether Accused of Illegally Issuing USDT

veleten

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Quote from: ?? on ??

Quote from: Zemomtum on July 10, 2019, 08:16:01 AM

According to the report below, Bitfinex and Tether have allegedly issued USDT as loans to investors and activated as an unregistered securities distributor in New York even though they are not allowed to operate such business practices in the state. Will this affect the crypto space?

It won't affect anything, I don't see anything illegal about it

I don't see either, but the regulators could see things the other way around
especially if they are prejudiced and are eager to slap a multimillion fine or two in the process
will it affect the cryptospace? it might if the decision will be a draconian one , like shutting down Bitfinex or something like that
but it would affect USDT mostly , so I don't think the proper cryptocrrencies would suffer

figmentofmyass

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Quote from: 1Referee on July 19, 2019, 04:08:39 PM

People are stupid, they know Tether is most likely not fully backed, yet don't care but still use it to move fiat from one exchange to another. People will feel the pain when their Tethers will become worthless, that's when they will regret selling one of the most precious assets in the world for something shittier than the real dollar.

as long as some people can redeem tethers for real dollars, arbitrage will keep the market in line. that's the magic of tether. they don't need to be fully backed. they just need enough money flow to justify arbitrage.

really, this is no different than an insolvent exchange---and there are (and have been) many of those. "real dollars" didn't mean much on mt gox either. like a bank balance before a bail-in, they are just numbers in a database subject to change at any time.

Quote from: 1Referee on July 19, 2019, 04:08:39 PM

Most people don't need super high liquidity. Exchanges such as Binance support USDC pairs that generate enough volumes for the far majority of the traders. You can't prevent people from doing stupid things, but at least using USDC instead of Tether is less stupid.

i use the USDC market but tbh, i'm a small fry and i still experience disappointing slippage. sometimes market ordering into walls is the only way i can get enough liquidity. if i were just 2-3x bigger, i would need to either use USDT or go legit somewhere liquid like coinbase pro.

1Referee

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Quote from: hugeblack on July 16, 2019, 12:39:37 PM

USDT's idea collapsed as soon as the connection between it and the US dollar differed.
There is a lot of uncertainty about this currency so I do not expect there to be real coverage in US dollars, which means that the currency has completely failed.
I like decentralized models of coins.

The idea perhaps, but the token itself is more widely adopted than ever before.

People are stupid, they know Tether is most likely not fully backed, yet don't care but still use it to move fiat from one exchange to another. People will feel the pain when their Tethers will become worthless, that's when they will regret selling one of the most precious assets in the world for something shittier than the real dollar.

Most people don't need super high liquidity. Exchanges such as Binance support USDC pairs that generate enough volumes for the far majority of the traders. You can't prevent people from doing stupid things, but at least using USDC instead of Tether is less stupid.

Lucius

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Blackjack.fun-Free Raffle-Join&Win $50🎲

What to say when you read that only 74% of USDT is backed by real $ (maybe even less), and the rest is backed by nothing. This is insane, they are actually release fake money, when they need some extra cash to cover up some of their financial losses.

I fully agree with the authorities who want to put an end to this kind of practice, and only when and if Bitfinex deliver all asked documents to New York Supreme Court, we will see what are they doing and how much USDT is backed with real $.

When I see someone is compared Bitcoin and USDT or any similar coin, then it becomes quite clear to me that he does not even understand basic of cryptocurrency.

hugeblack

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USDT's idea collapsed as soon as the connection between it and the US dollar differed.
There is a lot of uncertainty about this currency so I do not expect there to be real coverage in US dollars, which means that the currency has completely failed.
I like decentralized models of coins.

DooMAD

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Leave no FUD unchallenged

If you're not a speculator, there won't be any impact at all on Bitcoin.

The impact should be on people and the mindset they have on projects like this. It just serves as further evidence that central entities issuing coins is highly prone to abuse, so you should seriously consider the consequences of storing your wealth in such coins.

elda34b

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Pretty sure it will have some effect, but it won't last for decades. Short-term issues would be price volatility. I believe if Tether crash then Bitcoin and alts will get some bad turn as the results. Lots of people will begin or believe that Bitcoin is manipulated heavily, so they need to cash out soon.

Zemomtum

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CitizenFinance.io

According to the report below, Bitfinex and Tether have allegedly issued USDT as loans to investors and activated as an unregistered securities distributor in New York even though they are not allowed to operate such business practices in the state. Will this affect the crypto space?

Details of the report can be found here: https://coindoo.com/tether-accused-of-illegally-issuing-usdt/?utn_medium=notification&utm_source=onesignal

Topic: [2019-07-10]Bitfinex and Tether Accused of Illegally Issuing USDT (Read 206 times)