That seems to be the main problem, but there are a few plaguing tether:
1. not promising to exchange USD/USDT (at least they should state they will, and have some caveats, rather than a blanket statement)
2. having all the banks in Taiwan. they should have them in multiple countries, which they are apparently working on.
3. not having an independent, third-party audits of the bank accounts.
I seriously doubt that Taiwan is the only option, certainly there are multiple countries where they could establish.
If all the problems stem from 2., then people should try to get money into tether by exchanging other crypto for it, and wait for it to go back up 8-9%.
Topic: About the USDT (Read 4623 times)
Actually I liked the final quote. It is the truth when it comes to TPTB. But then when they fight you they start out by smearing your name but do to Tethers non open backing they have already smeared their own name so step one is already checked off. 
but it has nothing to do with crypto. it's all to do with taiwan's slack regulations. there's a ton of non crypto payment processors who were attracted there because of that and now they have the same problem.
The difficulty is the same that Bitfinex is having - international wires to and from Taiwan are blocked. This means that while the reserve is in surplus, only Taiwanese customers can actually redeem tethers at 1:1. (This includes Bitfinex, who has Taiwanese banks as well). No one being able to move funds to Kraken also means that those in Taiwan who would otherwise be filling the gap (and thus “defending the peg”) are unable to do so (but I hear that people are in Taiwan getting this set up to take advantage of this).
It’s an extremely frustrating scenario, for sure. I do feel this is an attack on crypto companies, though - my guess is that after the asian banks, the european ones will be next and we’ll see this expand to include more blockchain business being unable to move funds. I hope not, but this is what it feels like.
I absolutely would not say that Taiwan’s regulations are “slack” - they’re actually higher than most international standards, and Tether’s KYC/AML policies are even stricter beyond that.
Craig
Actually I liked the final quote. It is the truth when it comes to TPTB. But then when they fight you they start out by smearing your name but do to Tethers non open backing they have already smeared their own name so step one is already checked off.
but it has nothing to do with crypto. it's all to do with taiwan's slack regulations. there's a ton of non crypto payment processors who were attracted there because of that and now they have the same problem.
Read this https://tether.to/faqs/
It explains how Tether work.
USDT is mostly used to go short for Bitcoin price. If Bitcoin price drops the equivalant Bitcoin value of USDT increases.
It explains how Tether work.
USDT is mostly used to go short for Bitcoin price. If Bitcoin price drops the equivalant Bitcoin value of USDT increases.
yes,, with a simple explanation tether just like USD but in BTC value,,
Another thing to consider is that even though they may have they USD reserves to back up all the Tethers, it doesn't mean they will be able to maintain the 1$ peg. If they are having trouble transferring money, then that could very likely also mean that they are having trouble getting USD to the exchanges. If the crypto market goes on a bear run, then they may not be able to get enough money on exchanges to place the buy orders keep the price near $1.
Now Tether is at $9.20... a new all time low.
Now Tether is at $9.20... a new all time low.
Why is the price below 1 USD?
If there really is 1 USD in the bank for each 1 USDT, then it should maintain parity (absent a security threat to USDT). Even though it is partially owned by Bitfinex, I don't think they would be allowed to take those USD and apply it to Bitfinex liabilities. But Tether is incorporated in the virgin islands, I'm not sure of the legal implications, if any.
The 2 main problems seem to be their disclaiming the exchange of USD and USDT, and the fact that there is no third-party audit of the bank accounts. We are only taking them at their word that they have the reserves to back up the tether. If they have the reserves but people don't know it, a loss of confidence in tether will cause USDT to fall below the price of USD.
It really does not matter whether they have reserves or not. Read the terms of service at https://tether.to/legal. There is no mention of the reserves in the TOS but the obligation to redeem Tethers is disclaimed so there seems to be no obligation to use the reserves for anything in particular. As I read it Tether Limited would be free to use the reserves to back up Bitfinex or to buy apartments on Park Avenue for that matter. The disclaimers are quite sweeping.
Granted, they have disclaimed liability, but obviously having no reserves is worse than having reserves. They purport to exchange any USD for USDT:
https://tether.to/announcement/
Quote
The Tether Reserve remains in surplus of the 1:1 backing of USDT and has more than the necessary currency on deposit to redeem all existing tethers.
I think they are intending their statements to protect them in case someone with illicit background wants to make exchanges.
https://tether.to/announcement/
their announcement. slightly weird and unprofessional wording at the end.
their announcement. slightly weird and unprofessional wording at the end.
Actually I liked the final quote. It is the truth when it comes to TPTB. But then when they fight you they start out by smearing your name but do to Tethers non open backing they have already smeared their own name so step one is already checked off.
"First they ignore you, then they laugh at you, then they fight you." Overused cliche.
Yet still applicable but not so much in this case, yet it is for the scene as a whole.
https://tether.to/announcement/
their announcement. slightly weird and unprofessional wording at the end.
their announcement. slightly weird and unprofessional wording at the end.
Actually I liked the final quote. It is the truth when it comes to TPTB. But then when they fight you they start out by smearing your name but do to Tethers non open backing they have already smeared their own name so step one is already checked off.
"First they ignore you, then they laugh at you, then they fight you." Overused cliche.
https://tether.to/announcement/
their announcement. slightly weird and unprofessional wording at the end.
their announcement. slightly weird and unprofessional wording at the end.
Actually I liked the final quote. It is the truth when it comes to TPTB. But then when they fight you they start out by smearing your name but do to Tethers non open backing they have already smeared their own name so step one is already checked off.
Why is the price below 1 USD?
If there really is 1 USD in the bank for each 1 USDT, then it should maintain parity (absent a security threat to USDT). Even though it is partially owned by Bitfinex, I don't think they would be allowed to take those USD and apply it to Bitfinex liabilities. But Tether is incorporated in the virgin islands, I'm not sure of the legal implications, if any.
The 2 main problems seem to be their disclaiming the exchange of USD and USDT, and the fact that there is no third-party audit of the bank accounts. We are only taking them at their word that they have the reserves to back up the tether. If they have the reserves but people don't know it, a loss of confidence in tether will cause USDT to fall below the price of USD.
It really does not matter whether they have reserves or not. Read the terms of service at https://tether.to/legal. There is no mention of the reserves in the TOS but the obligation to redeem Tethers is disclaimed so there seems to be no obligation to use the reserves for anything in particular. As I read it Tether Limited would be free to use the reserves to back up Bitfinex or to buy apartments on Park Avenue for that matter. The disclaimers are quite sweeping.
https://tether.to/announcement/
their announcement. slightly weird and unprofessional wording at the end.
their announcement. slightly weird and unprofessional wording at the end.
they say it is USDT.
I'd be selling any usdt I had there right now if I hadn't already got out. This shit is gonna crash and burn but somone is making alot of money first and it ain't gonna be the ones holding the bag. Hah I misread it as well. Lol
http://forklog.net/cunning-tether-or-why-terms-of-service-outweigh-whitepapers/
sorry, i missread your post. bitfinex is not bittrex....
they say it is USDT.
Bittrex does, but Bitfinex has trading pairs listed in "USD"
they say it is USDT.
Why is the price below 1 USD?
If there really is 1 USD in the bank for each 1 USDT, then it should maintain parity (absent a security threat to USDT). Even though it is partially owned by Bitfinex, I don't think they would be allowed to take those USD and apply it to Bitfinex liabilities. But Tether is incorporated in the virgin islands, I'm not sure of the legal implications, if any.
The 2 main problems seem to be their disclaiming the exchange of USD and USDT, and the fact that there is no third-party audit of the bank accounts. We are only taking them at their word that they have the reserves to back up the tether. If they have the reserves but people don't know it, a loss of confidence in tether will cause USDT to fall below the price of USD.
Any idea why Polo seems to clearly state you are trading in USDT, while on Bitfinex platform it seems to be listed just like regular USD?
Why is the price below 1 USD?
If there really is 1 USD in the bank for each 1 USDT, then it should maintain parity (absent a security threat to USDT). Even though it is partially owned by Bitfinex, I don't think they would be allowed to take those USD and apply it to Bitfinex liabilities. But Tether is incorporated in the virgin islands, I'm not sure of the legal implications, if any.
The 2 main problems seem to be their disclaiming the exchange of USD and USDT, and the fact that there is no third-party audit of the bank accounts. We are only taking them at their word that they have the reserves to back up the tether. If they have the reserves but people don't know it, a loss of confidence in tether will cause USDT to fall below the price of USD.
Why is the price below 1 USD?
Who knows...
It looks like this is the furthest away from parity it's ever been ($0.937359). We shouldn't jump to conclusions, but hopefully the Tether company is not having economic difficulties.
It is interesting because according to the internet sleuths it supposedly has some ties to Bitfinex. I guess we'll find out just how closely they are related if Bitfinex goes bankrupt, because Tether is sure to implode as well if Bitfinex is the main operator of it. If they are the main operators of Tether, then it could explain why it has come away from the $1 peg. Bitfinex's present business issues are well documented in recent news articles.
Even more interesting... take a look at the Tether all time graph on Coin Market Cap. You will see it has only strayed away from $1 once before- it dropped down to $0.96 for a short period of time. The date is the interesting part though, because it happened on or around August 12th. Guess when Bitfinex was hacked last year for a loss of 744,408 BTC? August 2nd... just 10 days before Tether came away from $1 for the first time. This can't be a coincidence... can it?
I hope for the people who own Tether's coins' sake that that is not the case.
Why is the price below 1 USD?
https://tether.to/legal/
PURCHASE AND REDEMPTION OF TETHERS: The Site is an environment for the purchase and redemption of Tethers. Once you have Tethers, you can trade them, keep them, or use them to pay persons that will accept your Tethers. However, Tethers are not money and are not monetary instruments. They are also not stored value or currency.
There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers.
# REKT
PURCHASE AND REDEMPTION OF TETHERS: The Site is an environment for the purchase and redemption of Tethers. Once you have Tethers, you can trade them, keep them, or use them to pay persons that will accept your Tethers. However, Tethers are not money and are not monetary instruments. They are also not stored value or currency.
There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers.
# REKT
@BorisTheBulletDodger, Hah love that movie.
Lock stock & 2 smoking barrels is better though. 
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