Topic: bitcoin and Tether: " Canceled Audit and Issuance of 300 Mln New Tokens " (Read 125 times)

Concern? As you still have doubts about this?
I give them 0.00% chances of passing an audit.
If you refuse something like this while your coin's (or token, as contently I don't have a clue what this tether really is) value is entirely built on the trust you are able to buy them back at 1$ it's pretty clear you can't pass an audit.

They either have invested the money in bitcoins, or altcoins, and they have quite the loses or they've just lost it, spent it, invested in something not related to crypto..god knows.

But I'm willing to bet they're fiat reserves are not even close to 10% of the value of tokens issued.



Tether is crypto fiat.
We don't need this. We already have the euro and the usd for this.
Any coins that are "stable" because the developers or owners are pegging them artificially to a currency are useless.

Tether and the people behind it seem to be putting off any serious audit in to what is actually going on for as long as possible, this has loomed over the crypto economy for too long and I'm starting to fear as to what will actually be uncovered when some serious investigations take place. I don't see why a legitimate currency would hide away for so long.

and that makes me worried, why is it so hard for them to do such an audit and stop the noise? if they have the money, then I see no reason why they do not want to do such an audit and prove that the guy who accuses them is wrong and reassure me because I use USDT to trade and I'm also worried that this will affect the price of bitcoin. not only that, it makes governments and banks not take us seriously. they need to do this audit in the future.


at least that shows that these guys who posted the article are wrong, but I still remain concerned that they are not auditing

I think by some standards my last post was borderline FUD, guess not expanding on it by replying to this thread

There have been reports/assumptions suggesting both correlation between Tether issuance and Bitcoin price movements and no correlation. A lot of FUD on whether issuance of Tether is organic to meet market demands or intentionally issued when Bitcoin market is falling. All these questions would have been irrelevant if Tether could simply validate their claims through an audit, without doing so they are blurring the line between FUD and fact, until then it is a real concern for the crypto community.

Either they will prove they actually do have fiat reserve or carry on issuing Tether without an audit to the point where it's revealed they aren't backed by USD and are insolvent, collapse and it would be really bad. The crypto market needs more stablecoins with absolute transparency, more spread out so that collapse of any centralized pegged cryptocurrency doesn't have a significant effect on the market. Rather than centralized fiat-collateralized stablecoins, crypto-collateralized stablecoins are a better option, wouldn't be as stable as fiat-pegged, but decentralized/transparent, no manipulation, and a mutual commitment to keep the decentralized collateral/ecosystem intact.

During most of Bitcoin's price surge, Bitcoin's trading volume was at least a few times higher than Tether's.  While Tether could have some effect on the Bitcoin price, I doubt it would be enough to cause a surge by itself.

Still, I've been suspicious of Tether for ages.  Cancelling an audit halfway through is even more suspicious, especially when their main reason for cancelling the audit was that it was taking a while (which it obviously would) and then they didn't find any other reputable company to audit them.

They're dealing with billions of dollars worth of crypto here.  It's easy to forget just how huge their business is to have not had a professional audit.

I'm actually interested in one thing the article claims.

They claim that Tether issued 300 millions on the 20th and this is why the price rebound...
But the rebound happened two days earlier...


Moreover, the data shows it happened at Mar 20 2018 20:51:14 GMT+0200 so it's basically 21.
https://omniexplorer.info/tx/f3efac4b6203248fc06e2788b61e732319a6e596768f5240680f944780ff84f4

Not that I'm defending tether but it's kind of a far fetched to accuse them of this.
But I won't miss this coins if it will end up worthless by tomorrow.

the only thing this and a lot of other situations in the recent past months of new Tethers and bitcoin continues fall proves is that this guy @Bitfinex'ed was mostly butthurt for some reason and has been spreading FUD trying to scare people!

the collapse of Tether will surely hurt the whole cryptocurrency scene since it is being used quite a lot in this market but that doesn't still mean bitcoin price went up because of it and it still doesn't mean bitcoin will die if tether dies!

Small introduction about Tether: Tether Case, Explained

1 - What is Tether?

Tether is a cryptocurrency that represents real currencies in a Blockchain market.

The project was founded in November 2015. It has two tokens USDT and EURT, which were made as analogues of USD and EUR in a Blockchain world. These cryptocurrencies are closely connected with the exchange Bitfinex. At first, Tether was based on the Bitcoin Blockchain system, but in June 2017, the transition to Litecoin was declared.



4 - What about tokens liquidity and emission?

Without any audit information, it cannot be stated for sure.

Despite all the issues described above, the Tether capitalization was growing. It has been growing rapidly, so it means investment flow. But where does it come from? As the official site says reserve holdings are subject to professional audits. However, Tether does not give any names of auditors or companies.

Tether cannot use bank facilities, so where does the company hold its money? Why is the information not known for token holders? What is the real circulation of tokens? The Blockchain community has more questions than answers. Emission can be excessive, which means unbacked tokens.

The pair USDT/USD is presented on only two exchanges: Kraken and Bitfinex. Bitfinex fixed the price of one USDT at a rate of one USD. The volume of these transactions is tiny, so the question about the liquidity is open.

source: https://cointelegraph.com/explained/tether-case-explained

Ok, let's go to the article:



well, this seems to be a very serious problem, I have been following this story about Tether for some time, but I would like to hear your opinion on this subject.

A possible collapse of Tether, what would be the immediate effects caused by this possible collapse?

this guy @Bitfinex'ed, has become a big enemy of the owners of Tether, why? Would not it be easier to do such an audit and end all this noise?

What is your opinion on this story?

PS: I'm not accusing Tether of anything, I just want to better understand this whole story.