Topic: how realistic is this: create own big crypto trading platform with own USDA (Read 73 times)
December 10, 2021, 07:38:35 AM
Op, while I don't trust Tether and think there's always a risk of it collapsing because there's no proof it's satisfyingly backed up by anything, I don't think Binance is manipulating or anything. After all, they have their own currency which they can play with (BNB), and Tether seems like a completely different product. As for using one million dollars to back up the price, you probably realize that doing it on a popular exchange is not going to help much, but if you actually create your own exchange, $1 million worth of money could make a difference locally (if the trading volume on your exchange is low), but, then again, it won't affect the market as a whole because other exchanges won't have the same discrepancy.
December 10, 2021, 06:41:09 AM
If you think that Binance and Tether are in cahoots, then you’re most probably wrong. A lot of times new Tether prints just enter Binance simply because Binance has the most liquidity in the cryptocurrency markets in general.
Also, if pumping asset prices was just THAT easy, and if Tether can just literally print a trillion dollars today, then dude bitcoin should’ve been in the multi-millions already.
Also, if pumping asset prices was just THAT easy, and if Tether can just literally print a trillion dollars today, then dude bitcoin should’ve been in the multi-millions already.
December 10, 2021, 05:40:36 AM
For me, all this sound sketchy and very far from the original intent of creating a coin that offers certainty and trustless exchanges.
I do not think that manipulating the price of Bitcoin will be easy, but rather volatile, because there are about 90% of the supply in unknown hands and it can be added to the market to control any insane rise in prices or vice versa. Therefore, for large whales and platforms, price manipulation in the medium and short term is very possible.There are also more than a million bitcoins that we may not know who owns them.
Tether (USDT) is a compromise solution for traders and even if it is not present, the platforms will find a way to fix the price.
December 10, 2021, 12:36:08 AM
Your plan all depends on the fact that people believe in the value of this "USDA".
This is harder than it looks. Tether started out with full reserve and the backing of many major players in the crypto space and slowly devolved into this monster that we see right now.
Otherwise, you are just going to have high crypto prices on paper but not in "real terms".
This is harder than it looks. Tether started out with full reserve and the backing of many major players in the crypto space and slowly devolved into this monster that we see right now.
Otherwise, you are just going to have high crypto prices on paper but not in "real terms".
December 09, 2021, 09:01:14 PM
Let us set aside your insinuation on Binance and Tether or USDT for now. That's a different discussion altogether. You are raising a rather serious accusation to which I think you should provide proof.
Anyway, I guess that plan is very possible. If you have the capacity to create a stablecoin backed 1:1 with USD, then you can do that. I mean, you could inflate the price of BTC. You don't even have to create an exchange for it. You only have to have the money. As a matter of fact, you don't even have to create a stablecoin.
But you cannot do that with 100,000 USD. If you checked the market cap of Bitcoin lately, it's almost a trillion USD. Your 100,000 would mean very little to the market.
Anyway, I guess that plan is very possible. If you have the capacity to create a stablecoin backed 1:1 with USD, then you can do that. I mean, you could inflate the price of BTC. You don't even have to create an exchange for it. You only have to have the money. As a matter of fact, you don't even have to create a stablecoin.
But you cannot do that with 100,000 USD. If you checked the market cap of Bitcoin lately, it's almost a trillion USD. Your 100,000 would mean very little to the market.
December 09, 2021, 07:51:52 PM
Tether (USDT) is used to buy bitcoin. Its supply mirrors BTC demand.
In theory they can create tether out of thin air. Don't forget there have also been cases where billions in tether supply was destroyed in an effort to stabilize market forces and keep tether pegged to the US dollar. Billions in tether supply being destroyed, is one of the events which triggered public interest in stablecoins. Many financial institutions can claim to have made billions of dollars. But not many can be profitable enough to afford to destroy billions of their own supply.
Tether's claim to fame is mainly allowing for instant purchase of bitcoin, pegged to the dollar, reducing volatility on the buying side. Its utilized by those who do not want the hassle of coinbase or binance. Or the hassle of trying to buy bitcoin using a debit or credit card. In tether's case, when we say buy bitcoin we're talking about large sums of money being involved. Tether is one of the main bitcoin buying option for whales and large(er) investors.
In theory they can create tether out of thin air. Don't forget there have also been cases where billions in tether supply was destroyed in an effort to stabilize market forces and keep tether pegged to the US dollar. Billions in tether supply being destroyed, is one of the events which triggered public interest in stablecoins. Many financial institutions can claim to have made billions of dollars. But not many can be profitable enough to afford to destroy billions of their own supply.
Tether's claim to fame is mainly allowing for instant purchase of bitcoin, pegged to the dollar, reducing volatility on the buying side. Its utilized by those who do not want the hassle of coinbase or binance. Or the hassle of trying to buy bitcoin using a debit or credit card. In tether's case, when we say buy bitcoin we're talking about large sums of money being involved. Tether is one of the main bitcoin buying option for whales and large(er) investors.
December 09, 2021, 06:43:49 PM
like binance is doing with tether - they are "printing" fake casino money to inflate price of BTC using USDT (80 billions currently) - if anybody decide to create crypto market exchange and create for example USDA token (just like USDT alternative with also "covered" 1:1 to USD dollar) and print every day few millions of USDA - and then buy BTC to inflate price to 1'000'000 USD/BTC.
Is there any evidence of cooperation between tether and Binance to manipulate USDT prices? I don't think there is a link, it can be understood with the BUSD.There are facts you should know:
USDT is backed by promises: There is no 1 USDT == 1 USD in bank, and therefore all that preserves its value is to continue to make promises that there is a real dollar for each USDT, and therefore you should avoid it if you want a stablecoin outside the platform.
USDT is used within the exchanges and this is only a small percentage (less than 10%) of the real Bitcoins.
I think these numbers do add to the argument in favour of considering that bitcoin price is being artificially inflated by the issuance of "tethers" in all their varieties. Even if only 10% of the bitcoins are exchange, price manipulation is even simpler and the depth of the market is low and it can be easily altered. If the USDT is not effectively backed up 1:1 then is leveraged and thus adds strength to the ability to artificially manipulate the market price and even the marketcap.
For me, all this sound sketchy and very far from the original intent of creating a coin that offers certainty and trustless exchanges.
December 09, 2021, 04:52:44 PM
like binance is doing with tether - they are "printing" fake casino money to inflate price of BTC using USDT (80 billions currently) - if anybody decide to create crypto market exchange and create for example USDA token (just like USDT alternative with also "covered" 1:1 to USD dollar) and print every day few millions of USDA - and then buy BTC to inflate price to 1'000'000 USD/BTC.
There are facts you should know:USDT is backed by promises: There is no 1 USDT == 1 USD in bank, and therefore all that preserves its value is to continue to make promises that there is a real dollar for each USDT, and therefore you should avoid it if you want a stablecoin outside the platform.
USDT is used within the exchanges and this is only a small percentage (less than 10%) of the real Bitcoins.
On the other hand with OP, it's possible to create own platform but, its nothing if it haven't got the liquidity and volatility to deliver on its promises. It would as we be tearmed scam and raise red flags.
December 09, 2021, 02:35:42 PM
like binance is doing with tether - they are "printing" fake casino money to inflate price of BTC using USDT (80 billions currently) - if anybody decide to create crypto market exchange and create for example USDA token (just like USDT alternative with also "covered" 1:1 to USD dollar) and print every day few millions of USDA - and then buy BTC to inflate price to 1'000'000 USD/BTC.
Is there any evidence of cooperation between tether and Binance to manipulate USDT prices? I don't think there is a link, it can be understood with the BUSD.There are facts you should know:
USDT is backed by promises: There is no 1 USDT == 1 USD in bank, and therefore all that preserves its value is to continue to make promises that there is a real dollar for each USDT, and therefore you should avoid it if you want a stablecoin outside the platform.
USDT is used within the exchanges and this is only a small percentage (less than 10%) of the real Bitcoins.
December 09, 2021, 12:45:35 PM
and inflate price of BTC into 1'000'000 USD? of course not at once but slowly with crashes and "dips" to "take profit" like every casino..
like binance is doing with tether - they are "printing" fake casino money to inflate price of BTC using USDT (80 billions currently) - if anybody decide to create crypto market exchange and create for example USDA token (just like USDT alternative with also "covered" 1:1 to USD dollar) and print every day few millions of USDA - and then buy BTC to inflate price to 1'000'000 USD/BTC.
do you think and why do you thing that this plan will fail?
does binance got lucky with USDT to inflate price by 90% because they were the first one or is there still a possibility to have another fake USDtether like currency with billions of "dollars" in it?
let's say you have 100'000 USD to play a game - can you do something like that in current market?
like binance is doing with tether - they are "printing" fake casino money to inflate price of BTC using USDT (80 billions currently) - if anybody decide to create crypto market exchange and create for example USDA token (just like USDT alternative with also "covered" 1:1 to USD dollar) and print every day few millions of USDA - and then buy BTC to inflate price to 1'000'000 USD/BTC.
do you think and why do you thing that this plan will fail?
does binance got lucky with USDT to inflate price by 90% because they were the first one or is there still a possibility to have another fake USDtether like currency with billions of "dollars" in it?
let's say you have 100'000 USD to play a game - can you do something like that in current market?
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