Topic: I'll Contend: There's Absolutely Nothing Shady, Corrupt or Criminal About Tether - page 2. (Read 352 times)

I still don't understand why institutional investors would have to use them at all.  They don't need an intermediary form of money to purchase stocks, bonds, or anything else.  I really don't see what purpose they serve...at all.

I don't believe there's anything criminal about tether or any other stable coin.  It's just that like ico's, there's very little utility other than the fact that a trader is using cryptocurrency rather than fiat.  Where is the advantage there?  I'm not asking this rhetorically.  I'd really love a good explanation, and I'll continue to watch this thread.

Not to mention the thing they are supposedly "backed by" (even though we all know they aren't actually backed at all), is fiat. Even if your $1 million purchase of Tether is still redeemable for $1 million USD in 10 years time (and that's a big if), you will have lost a significant percentage of your purchasing power thanks to fiat being a sinking ship. So you can add that to the list of risks. If you own Tether on an exchange, then someone else is holding an insolvent currency which is constantly devaluing on your behalf.

Tether is a scam. Everyone would do well to exit it as soon as possible.

I'm not confident in that assessment. Centralized stablecoins are functionally no different than balances held on centralized exchanges. They are exchange-issued fiat IOUs. When you hold USDT on an exchange like Binance, the counterparty risk is actually two-fold: Tether could become insolvent because tokens are unbacked or Binance could become insolvent if their USDT wallet gets compromised.

In fact, we already know Tether is insolvent. Given the numerous exchange hacks, scams, and government shutdowns that have separated exchange customers from their money, I'd say holding USDT is pretty risky.


Neither Tether nor Bitfinex serve Americans anyway. There's no peer-to-peer liquidity either.


Of course not. People wiring money to Tether is the same thing as people wiring money to any Bitcoin exchange. It's being used to buy cryptocurrency.

I think the relationship between Tether volume and bitcoin price movement is only a theory that cannot be proven. However, the concern about Tether is legit because it's still a centralized entity. The fact that they don't back Tether 1:1 with USD told all the stories about our concern that we cannot audit what's inside their vault.

Moreover, the suspicion about their criminal activities is not baseless, https://cointelegraph.com/news/head-of-crypto-capital-arrested-in-connection-with-money-laundering

I guess the crypto-community does not easily forget the alleged controversy that Bitfinex illegally and secretly used Tether's fund worth more or less $700 million to cover up its losses which technically defrauded its investors!

Link: Bitfinex Allegedly Covers $850 Million Loss With Tether Funds

Tether has been changing their stand within the short time frame of just two years, I’m sorry sir we aren’t so forgiveful for even one lie, when there is a first time, there will sure be the second time, they will continue to lie their way out of every profit they could accumulate, I’m certain that tether will eventually backed by nothing but a promise, remember federal reserve? We never forget we never forgive we are nobody.

Bitfinex is absolutely corrupt and Tether is a scam.

I would suggest to everyone to have a read of the most latest lawsuit (of several) against Ifinex and Tether: https://www.courtlistener.com/recap/gov.uscourts.nysd.524076/gov.uscourts.nysd.524076.1.0.pdf. If you want a quick skim, just read points 1 through 14, 80 through 91, and 116 through 136.

Essentially, Tether prints USDT out of thin air, sends it to themselves at Bitfinex, uses it to buy bitcoin, and then sells that bitcoin back to users for real dollars. Any time they need to redeem Tether, they can sell the bitcoin they bought for nothing by printing Tether out of thin air, and claim they had that money in reserve all along. That's without even touching on the fact they loaned themselves $850 million by giving fake USDT from Tether to Bitfinex to stop them from being insolvent.

I agree with BitHodler, without transparency Tether is actually in the opinion of many a very suspicious project. If they first say that every Tether is backed with $1, then that this is not true entirely, but that it is backed by some other assets for which they do not want to reveal what it is. So if I have $100 at least I know I have them in my pocket, but with 100 Tether on some exchange, I only have promise that those tokens worth $100.

What if at some point the authorities prove that Tether is mostly printed with no real coverage in dollars? While I do not question the usefulness of a project like this, there are still too many possibilities for manipulation that justifiably cast a shadow over the whole project.

As long as Tether the company doesn't allow a proper audit of resources, there is every reason for people to question their business model, especially with how they have admitted to not have that 100% backing.

They also admitted that they used non backed tokens to buy Bitcoin with. I'm not sure about the amounts they bought Bitcoin with, but the act alone is already extremely shady which people rightfully worry about.

This last pump from 7.5k to 10k probably has nothing to do with tether pumping as far as I can see. Tether marketcap stays same on CMC and bitcoin did a %30. There is still a possibility that it might be the earlier old tethers doing their thing though. So much of them around.

There appears to be a question of what purpose stablecoins like tether can be utilized for. What role they fulfill.

 

IMO stablecoins are one of the best options to purchase crypto via fiat.

Stablecoins retain value well. Its feasible to hold them long term until a good buy in opportunity arises. A trader purchasing $1 million dollars in tether today can rest assured it will be worth $1 million dollars 5 or 10 years from now. This makes stablecoins like tether a better intermediary option than altcoins which normally appreciate or depreciate in value over time.

Stablecoins do not suffer from disadvantages of bitcoin ATMs or services like localbitcoins. ATMs can carry 20% price markups. Localbitcoins can carry similar precedents and introduce possibility of scams. The lack of percentage price mark up make stablecoins a more attractive option.

US markets tend to be limited. The few options americans have for purchasing crypto are restricted to a handful of services like coinbase which do not have the best reputation.

There was a month in 2018 where tether reported $800 million dollars in tokens redeemed. This could indicate the tether and stablecoin markets are an avenue of crypto purchase for whales and large institutional investors.

If all of the above is true. Is correlation between tether volume and bitcoin demand, surprising? If indeed tether and stablecoins are one of the best options for purchasing crypto in current existence?

People might wonder what stablecoins or tether is used for. What if its primary role is an intermediary between fiat and crypto for large institutional investors looking to buy in?