most likely why tether is a problem (you shouldnt have to "keep the market cap")

maianh09

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Quote from: blandana on August 09, 2019, 03:01:32 PM

If tether was actually what it claimed it was supposed to be...You would be able to buy it for $1. ...And you would be able to sell it for $1....And you would make no profit. And, the market cap should stay exactly the same if there is no real new money coming in.

The serious flaw right now in tether is that someone decided it was ok to make a "pseudo" stable coin and rely on 3rd parties to buy tether or something when it goes below a dollar. Just the -fact- that sometimes tether goes below one dollar is probably illegal.

The conventional Tether rate is valued at $ 1, but Tether's exchange rate remains volatile as the market's buying or selling demand rises. When the dump market, the Tether ratio decreases, and it increases when the pump market. I noticed that Tether was not really stable and that it still fluctuated like all Altcoins.

fullhdpixel

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I have never been interested in having anything to do since they started their operation because Tether right from their start has always been more than a scam coin to me because to speak the truth, there is something so fishy about their operation and you have a fact there that their coin is meant to be like stable coin and have no fluctuation in it.

Tether is not the only stable coin that we have in the market but they are the only one having scam and legal issue already and this is the more reason why people ought to have stayed away from it. Their days are so numbered anyway, one Facebook releases its own stable coin, they will surely overthrow tether which I believe Facebook Libra will be more reliable than tether.

adaseb

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Quote from: Red-Apple on August 10, 2019, 05:37:01 AM

the biggest problem with tether in my opinion is that people don't actually buy it with fiat (USD). instead what they do is that they either use bitcoin to buy it and then use that to trade altcoins. or they use bitcoin to buy altcoins and as they trade altcoins that market tanks (like the entire 2018) then end up being forced to convert their coins to tether.

this also explains why they kept printing more tether during 2018. and also why it is very bad for altcoin market. the day when tether finally is shut down by the governments the altcoin market will be devastated.

First of all people buy Tether with USD fiat. The way it works is someone wires money to Bitfinex, and they want to buy alts not on the exchange. They convert the USD to USDT and then they can withdraw those tethers into another exchange like Binanace. When this happens the market cap of tether increases.

And in 2018 during the middle of the year or so the tether market cap actually started to fall. It rose during the first half of the year but by Oct it ended up actually going down because people cashed their Tether's back to Fiat.

blandana

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thanks for your response everyone they are very valuable. I appreciate it.

Red-Apple

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the biggest problem with tether in my opinion is that people don't actually buy it with fiat (USD). instead what they do is that they either use bitcoin to buy it and then use that to trade altcoins. or they use bitcoin to buy altcoins and as they trade altcoins that market tanks (like the entire 2018) then end up being forced to convert their coins to tether.

this also explains why they kept printing more tether during 2018. and also why it is very bad for altcoin market. the day when tether finally is shut down by the governments the altcoin market will be devastated.

asder250

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Quote from: blandana on August 09, 2019, 03:01:32 PM

If tether was actually what it claimed it was supposed to be...You would be able to buy it for $1. ...And you would be able to sell it for $1....And you would make no profit. And, the market cap should stay exactly the same if there is no real new money coming in.

The serious flaw right now in tether is that someone decided it was ok to make a "pseudo" stable coin and rely on 3rd parties to buy tether or something when it goes below a dollar. Just the -fact- that sometimes tether goes below one dollar is probably illegal.

If people trust Tether then noone would sell it below 1USD. But when people start panicking that Tether is not backed or Bitfinex has a real problem, price could drop.

Javi_Anibarro

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tBTC - https://dapp.tbtc.network/

Quote from: _IRMAN on August 10, 2019, 03:39:36 AM

Quote from: X-ray on August 09, 2019, 06:33:17 PM

It's gone to the less than $0.75 for each tether last year. The CEO was keep minting new and new coin. The flaw is not only in the value of the tether that can drop a lot than what the value of fiat value that has been used to backed tether.
But remember when the team was doing a mistake by printing billions tether a few weeks ago. that means the team can manipulate tether.

So the team is free to make as many new tether as possible? there are no regulations that prohibit it? if so this will be a big problem in the future

Of course, there is, but the problem is any coins out there are not regulated yet. And it was not their first time doing it, remember when they got hacked a while ago? they did the same thing too, that was why no matter what they say or claim. It is not going to change the fact that they are only another so-called stablecoin. While in reality, they are not close enough to be one.

_IRMAN

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Quote from: X-ray on August 09, 2019, 06:33:17 PM

It's gone to the less than $0.75 for each tether last year. The CEO was keep minting new and new coin. The flaw is not only in the value of the tether that can drop a lot than what the value of fiat value that has been used to backed tether.
But remember when the team was doing a mistake by printing billions tether a few weeks ago. that means the team can manipulate tether.

So the team is free to make as many new tether as possible? there are no regulations that prohibit it? if so this will be a big problem in the future

blandana

jr. member

Activity: 209

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thank you for responding x-ray. I do remember that. " Accidentally" printing 1 billion dollars and then deleting it in 5 minutes as if theres nothing to worry about and it doesn't need to be looked into....
Im so tired of tether getting away with stuff like that.

X-ray

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Leading Crypto Sports Betting & Casino Platform

It's gone to the less than $0.75 for each tether last year. The CEO was keep minting new and new coin. The flaw is not only in the value of the tether that can drop a lot than what the value of fiat value that has been used to backed tether.
But remember when the team was doing a mistake by printing billions tether a few weeks ago. that means the team can manipulate tether.

blandana

jr. member

Activity: 209

Merit: 5

If tether was actually what it claimed it was supposed to be...You would be able to buy it for $1. ...And you would be able to sell it for $1....And you would make no profit. And, the market cap should stay exactly the same if there is no real new money coming in.

The serious flaw right now in tether is that someone decided it was ok to make a "pseudo" stable coin and rely on 3rd parties to buy tether or something when it goes below a dollar. Just the -fact- that sometimes tether goes below one dollar is probably illegal.

Topic: most likely why tether is a problem (you shouldnt have to "keep the market cap") (Read 186 times)