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Topic: Is BitFUnix and the Tether dollar USDT about to crash the Bitcoin market? - page 3. (Read 7039 times)

legendary
Activity: 1241
Merit: 1005
..like bright metal on a sullen ground.
Tether supplied increased by 125% since early march. That must be how they paid back everyone and have managed to stay afloat despite the BTC withdrawals. Also, they have a history of trading on their own exchange, I'm sure they are naked long now.

I wonder how long this is gonna last.

chart here: http://omnichest.info/lookupadd.aspx?address=3MbYQMMmSkC3AgWkj9FMo5LsPTW1zBTwXL

asset there:

http://omnichest.info/lookupsp.aspx?sp=31
http://omnichest.info/lookupadd.aspx?address=3MbYQMMmSkC3AgWkj9FMo5LsPTW1zBTwXL

10M USD were created out of thin air 3 days ago

People buying it are litterally gifting btc to finex LOL



Hmmm... I gotta admit the timing of the token buy back is very fishy. If they wanted to buy back with imaginary tether usd a good time would be right before all the usd gets trapped inside the exchange (IIRC the token buy back happened days before the fiat stoppage).

The thing is the balance of their btc wallet was up about the same percentage since early march. So they might have just issued more tether usd because of the overall crypto bull run since then.

https://blockchain.info/charts/balance?address=3D2oetdNuZUqQHPJmcMDDHYoqkyNVsFk9r×pan=60days

newbie
Activity: 29
Merit: 0
Tether supplied increased by 125% since early march. That must be how they paid back everyone and have managed to stay afloat despite the BTC withdrawals. Also, they have a history of trading on their own exchange, I'm sure they are naked long now.


I would be long too if i had the firepower of finex and 34k BTC shorts to eat. As long as this is under wraps.
hero member
Activity: 723
Merit: 503
Tether supplied increased by 125% since early march. That must be how they paid back everyone and have managed to stay afloat despite the BTC withdrawals. Also, they have a history of trading on their own exchange, I'm sure they are naked long now.

I wonder how long this is gonna last.

chart here: http://omnichest.info/lookupadd.aspx?address=3MbYQMMmSkC3AgWkj9FMo5LsPTW1zBTwXL

asset there:

http://omnichest.info/lookupsp.aspx?sp=31
http://omnichest.info/lookupadd.aspx?address=3MbYQMMmSkC3AgWkj9FMo5LsPTW1zBTwXL

10M USD were created out of thin air 3 days ago

People buying it are litterally gifting btc to finex LOL

member
Activity: 70
Merit: 10
woah that's a lot of money
I think the doom rumors for USDT are played up beyond the reality.

There would be severe negative consequences for the operators of the USDT service regardless of any disclaimer if they somehow defaulted.

I could be wrong, but I don't see it. For every usdt to usd transaction they do they charge $20 or .001% whichever is higher.

It's not a huge profit but it's nearly free money and it allows some exchanges to get around certain legal complications with trading USD.


Who knows? There is obviously going to be a psychological effect seeing the price spread between usdt and usd on bitfinex but so-far I haven't heard anybody claiming that tether.to hasn't honored their USDT with a 1:1 withdraw parity.

Has anybody successfully converted USDT to USD?
legendary
Activity: 1241
Merit: 1005
..like bright metal on a sullen ground.
Is BitFUnix and the Tether dollar USDT about to crash the Bitcoin market?


Ironically the worse the future looks for Tether the higher the price of bitcoin goes on bitfinex, as users scramble for the exits. It's almost like someone planned this  Wink
sr. member
Activity: 476
Merit: 501
If anything, USDT is the scam coin which will ultimately collapse. The Bank of England could not prevent George Soros from making a one way bet against the British Pound whilst in the European Exchange Rate Mechanism. USDT is not backed by a central bank AFAIK, so eventually someone won't be able to prop up its value if the market decides to bet against it. Pegged crypto's rely on the belief of stupidity, better to own the fiat instead.
legendary
Activity: 1245
Merit: 1004
Bitcoin will go $2000 this year or 2018, Kim Dotom will release Bitcache and Megaupload 2.0 and it will be a mainstream success, this will hype up the price to $2000 for sure. Can't risk a future moon ticket trying to short the market so I will stay as I am now. I have holded thought worse crashes.
Which crash where? We are at $1200

Tehter numbers, they reduced their marketcap for the first time, and like -10% just to go up now again on a new ATH.
legendary
Activity: 1204
Merit: 1028
Bitcoin will go $2000 this year or 2018, Kim Dotom will release Bitcache and Megaupload 2.0 and it will be a mainstream success, this will hype up the price to $2000 for sure. Can't risk a future moon ticket trying to short the market so I will stay as I am now. I have holded thought worse crashes.
sr. member
Activity: 440
Merit: 250
And even about Bitfinex, I have some doubts. They would not "crash" the market, but instead would maybe create a small drop in value, of about 100$, in case they run away. Which seems doubtful to me.

USDT is used on Poloniex also!

Yes, but for several reasons it does not frighten me, even though I am a rather active trader on Poloniex.
- Poloniex is known as an altcoin exchange, and people trading USDT there are only doing it to diversify to Bitcoin, not the inverse. That it why the USDT market is so little on Poloniex.
- As I said, it is quite little, and not very exposed. Few people use it and the volume is small compared to the rest of the site.
- It would ruin only people using USDT, and it would probably not taint Poloniex's reputation since the fault would be rejected on Tether. Moreover, Bitcoin market price not being made at Poloniex, the collateral effect would be very small I guess.

As I wrote, perhaps we need to wait a while before USDT is more widely used until a default might occur. This timing is one issue I wanted to discuss.

How can you view the volume of USDT on Poloniex?

Sure you know the answer, since you have stated the volume is low.

You view it by going on Poloniex page, in the very top bottom, there is the daily volume in all the currencies, including USDT, which today is 9 973 707 USDT. I did not say that it was low, but low compared to the rest of the site, since there has been in the meantime a volume of 65 483BTC, which is worth 78 250 000$, a lot more.
legendary
Activity: 1316
Merit: 1005
Because Bitfinex is making news that they can pay back the former thefts which no one thought to be mathematically possible, so it means that Bitfinex is trying to raise confidence so more people will put their money there, so it indicates they need money. It also indicates they stole the money from Peter to pay Paul. The likely source of the money is perhaps coming from printing USDT out-of-thin-air.

The conversion of BFX tokens to shares of Bitfinex completed and was the catalyst for full token redemption on the exchange. Interestingly, the amount of capital raised is 54513657[1]. This number is quite close to the total authorized line and, since Bitfinex is associated, I have to wonder whether there's any connection.

I've been opposed to the idea of a pegged unit well before Coinapult had its "locks" and still view such a system with suspicion for anything beyond very short-term utilization.

[1] https://bnktothefuture.com/search/pitches
sr. member
Activity: 336
Merit: 265
Of course not. tUSD and whatever else peg are separate entities from bitcoin and the way they pave has close to no effect on bitcoin's longlivity, as well as its markets. If they were to go through a rough patch, certainly people would lose money through those trust based systems but bitcoin markets unnafected by them would survive and outlast them.  

Why do you say that if $54 million of Bitcoin investors' (speculators') money was "poof, it's gone", that Bitcoin's price wouldn't crash?

The Bitfinex hack caused a -33% crash. Mt. Gox caused a -90% crash.

So $54 million compared to the $70 million lost in the Bitfinex incident.

However, given USDT is backing store for two exchanges, one might contemplate how it might impact margin trading and whether it could cause a cascade of forced liquidations that would exceed the reserves in the system. In other words, the 2.5x leverage in Poloniex is actually fractional reserves if the markets move too fast.
legendary
Activity: 2422
Merit: 1451
Leading Crypto Sports Betting & Casino Platform
Of course not. tUSD and whatever else peg are separate entities from bitcoin and the way they pave has close to no effect on bitcoin's longlivity, as well as its markets. If they were to go through a rough patch, certainly people would lose money through those trust based systems but bitcoin markets unnafected by them would survive and outlast them. 
sr. member
Activity: 336
Merit: 265
https://wallet.tether.to/transparency

That link purportedly shows the total balance of all tether.to holdings.

Yes I had seen that. So $54 million compared to the $70 million lost in the Bitfinex incident.

However, given USDT is backing store for two exchanges, one might contemplate how it might impact margin trading and whether it could cause a cascade of forced liquidations that would exceed the reserves in the system. In other words, the 2.5x leverage in Poloniex is actually fractional reserves if the markets move too fast.

I haven't figured it all out yet.

But it may be a smoldering problem that isn't yet ready to strike.
member
Activity: 70
Merit: 10
woah that's a lot of money
https://wallet.tether.to/transparency

That link purportedly shows the total balance of all tether.to holdings.


sr. member
Activity: 336
Merit: 265
You malign me, because you don't see the connections. Ostensibly because you aren't so astute or you have an agenda against me.

in that case i am ending this argument here since i am too dumb (according to you) and too lazy to open thesaurus.
good day.

The thread is intended to be a discussion, not an argument. You made it personal by maligning me. It is possible to state your ideas or opinions without impugning the other.

There you go again dropping implied insults by insinuating that I use a Thesaurus.

I am still waiting to read your cogent explanations. I doubt they will be forthcoming.

More logic, more facts, more real work, less useless unproductive elbows and acrimony.
legendary
Activity: 2128
Merit: 1293
There is trouble abrewing
You malign me, because you don't see the connections. Because you aren't so astute.

in that case i am ending this argument here since i am too dumb (according to you) and too lazy to open thesaurus.
good day.
sr. member
Activity: 336
Merit: 265
And even about Bitfinex, I have some doubts. They would not "crash" the market, but instead would maybe create a small drop in value, of about 100$, in case they run away. Which seems doubtful to me.

USDT is used on Poloniex also!

Yes, but for several reasons it does not frighten me, even though I am a rather active trader on Poloniex.
- Poloniex is known as an altcoin exchange, and people trading USDT there are only doing it to diversify to Bitcoin, not the inverse. That it why the USDT market is so little on Poloniex.
- As I said, it is quite little, and not very exposed. Few people use it and the volume is small compared to the rest of the site.
- It would ruin only people using USDT, and it would probably not taint Poloniex's reputation since the fault would be rejected on Tether. Moreover, Bitcoin market price not being made at Poloniex, the collateral effect would be very small I guess.

As I wrote, perhaps we need to wait a while before USDT is more widely used until a default might occur. This timing is one issue I wanted to discuss.

How can you view the volume of USDT on Poloniex?

Sure you know the answer, since you have stated the volume is low.
sr. member
Activity: 336
Merit: 265
Famous last words. How can you know what Bitfinex is doing? How can you know what the true reserves of Tether's USDT really are?

How can you know what is bitstamp doing?
How about Kraken?
How about the biggest altcoin exchange out there, Poloniex?

I already told you that Poloniex does all trades to USD in USDT. Go to Poloniex and look for yourself if you don't believe me.

Those other exchanges don't apparently use USDT by default. But Bitfinex and Poloniex do, so that is a lot of speculator money that could go poof if USDT is ever found to be fraud. Speculators would refuse to buy USDT, so its value would plummet.

Did you not click the links in the OP about the recent news stories?

I am well aware of the news, their bank, the withdrawal, ... that is why I said what I said.

Which news are you referring to specifically and do you know how it applies to what I wrote in the OP? Explain your understanding.

The risks, that you are raising today is a drama and nothing more. because nothing has changed in the past 6 or so years with bitcoin exchanges. they are still the same shady businesses that can run away at any moment.

the question is why spread the drama now?

Because Bitfinex is making news that they can pay back the former thefts which no one thought to be mathematically possible, so it means that Bitfinex is trying to raise confidence so more people will put their money there, so it indicates they need money. It also indicates they stole the money from Peter to pay Paul. The likely source of the money is perhaps coming from printing USDT out-of-thin-air.

And the news about Wells Fargo blocking their wire transfers is another warning sign that a default is developing.

You malign me, because you don't see the connections. Ostensibly because you aren't so astute or you have an agenda against me.
legendary
Activity: 2128
Merit: 1293
There is trouble abrewing
Famous last words. How can you know what Bitfinex is doing? How can you know what the true reserves of Tether's USDT really are?
How can you know what is bitstamp doing?
How about Kraken?
How about the biggest altcoin exchange out there, Poloniex?

Did you not click the links in the OP about the recent news stories?
I am well aware of the news, their bank, the withdrawal, ... that is why I said what I said.

The risks, that you are raising today is a drama and nothing more. because nothing has changed in the past 6 or so years with bitcoin exchanges. they are still the same shady businesses that can run away at any moment.

the question is why spread the drama now?
sr. member
Activity: 440
Merit: 250
And even about Bitfinex, I have some doubts. They would not "crash" the market, but instead would maybe create a small drop in value, of about 100$, in case they run away. Which seems doubtful to me.

USDT is used on Poloniex also!

Yes, but for several reasons it does not frighten me, even though I am a rather active trader on Poloniex.
- Poloniex is known as an altcoin exchange, and people trading USDT there are only doing it to diversify to Bitcoin, not the inverse. That it why the USDT market is so little on Poloniex.
- As I said, it is quite little, and not very exposed. Few people use it and the volume is small compared to the rest of the site.
- It would ruin only people using USDT, and it would probably not taint Poloniex's reputation since the fault would be rejected on Tether. Moreover, Bitcoin market price not being made at Poloniex, the collateral effect would be very small I guess.
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