Some worries about BTC/USDT trading exchanges

AdolfinWolf

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Quote from: odolvlobo on October 20, 2017, 02:55:20 PM

Quote from: noobvie on October 20, 2017, 12:15:09 PM

From the keyword 'USD Tether' in Google, they confirm 1:1 trade to real USD. It sees itself as real USD.
"Tether converts cash into digital currency, to anchor or tether the value to the price of national currencies like the ... So 1 USD₮ is always equivalent to 1 USD."

They say that 1 USDT is equivalent to 1 USD, but don't actually mean it. Read their disclaimer that I posted above.

Even if it is backed 1:1, it still doesn't trade 1:1 most of the time..

Whenever there a major crash, or a major pump, USDT either devalues / becomes overvalued, which makes sense, but is also kind of weird at the same time, since you would think that would correct rather quickly.

It fluctuates ~0.5% daily, and with major events up to 3-4%?

odolvlobo

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Quote from: noobvie on October 20, 2017, 12:15:09 PM

From the keyword 'USD Tether' in Google, they confirm 1:1 trade to real USD. It sees itself as real USD.
"Tether converts cash into digital currency, to anchor or tether the value to the price of national currencies like the ... So 1 USD₮ is always equivalent to 1 USD."

They say that 1 USDT is equivalent to 1 USD, but don't actually mean it. Read their disclaimer that I posted above.

noobvie

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From the keyword 'USD Tether' in Google, they confirm 1:1 trade to real USD. It sees itself as real USD.
"Tether converts cash into digital currency, to anchor or tether the value to the price of national currencies like the ... So 1 USD₮ is always equivalent to 1 USD."

odolvlobo

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Quote from: StraddleHQ on October 17, 2017, 11:04:25 PM

That is the major misconception among traders that USDT: USD is always 1:1 but Trade and market does not follow this even the data does not agree to this.

You just wrote that it is always 1:1 and that it is never 1:1. You can't have both. When is it always 1:1?

noobvie

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Thank you all of your replies. Now I think it's safer/better to trade ALT/BTC than BTC/USDT.
Have a nice day.

mk4

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📟 t3rminal.xyz

Can't answer your questions to my lack of knowledge, but I suggest taking a look at these posts/topics. USDT is really some shady shit. I personally wouldn't hold onto USDT for more than 24hrs.
(Reddit) Tether has created $70 million in new Tethers in the past 3 days.
(Reddit) Tether scares the hell out of me
(Reddit) The truth about Bitfinex and Tether...
(Reddit) As 20m more Tether are issued today, I think it's important for people to know that an unbacked Tether could be a big reason for the recent...
(Blogpays.com) The Controversy Surrounding Tether’s USD ”Backing” Continues

StraddleHQ

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Tether is not a individual organisation but comprises of Tether Holdings Limited, BFXNA Inc., iFinex Inc. They have shareholders from these individual organisation. The major share are being held by BFXNA ( around 36% ).

Quote

If it’s considered to be exchanged 1:1 to USD (according to coinmarketcap), will it can be in danger of being seized by FBI or government…?

That is the major misconception among traders that USDT: USD is always 1:1 but Trade and market does not follow this even the data does not agree to this.
We don't follow coinmarketcap data nor any serious organisation and banks follow it, though for you information if you look in the history of Tether data then you can easily find that sometime back 1 USDT = 1.21 USD [ This was ATH ] and again it was low like 1 USDT = 0.6 USDT [ This was ATL ]. ( Source )
There is a lot of analysis that i have in mind but that's all trading games. Hope you understand it better now, not always USDT can cap your loss.

Brad
Knowledge based support
Straddle.fund
Geneva Branch

odolvlobo

legendary

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This is also important to know:

Quote from: https://tether.to/legal/

There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers.

That legal statement completely contradicts everything that they claim about USDT being backed backed by USD. That's why I stay away from it.

OmegaStarScream

staff

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1. This guy[1] with some other people.
2. I believe that's not the case but after all, It's just a token built on the bitcoin blockchain (omni token).
3. The team claims that they are backed by real assets so that shouldn't be possible to do, the address could be owned by an exchange or something.
4. I'm not sure about the legalities of this but I can tell you something for sure. It's impossible for it to keep 1:1 with USD for ever.

[1] https://twitter.com/reevec?lang=en

noobvie

newbie

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Merit: 0

Hi all;

I'm a new trader to the crypto market. During my research, I notice one weird ‘currency token’ which can be call ‘USD’ tether or USDT (tether.to) in many exchanges.
Then I have some questions below, I'll really appreciate for your explanations:

Who (organization/person) managing this kind of tether tokens?
Does it have open-sourced?
Can they be ‘printed’ massively for (margin) trading (which made btc high pump/dump) recently? I found this address generating so much tokens by days: http://omnichest.info/lookupadd.aspx?address=3MbYQMMmSkC3AgWkj9FMo5LsPTW1zBTwXL
If it’s considered to be exchanged 1:1 to USD (according to coinmarketcap), will it can be in danger of being seized by FBI or government…?

Thanks for your reading and sharing…
Have a nice day.

Topic: Some worries about BTC/USDT trading exchanges (Read 481 times)