Tether: not even a scam - page 12. | Bitcointalksearch.org

ulhaq

sr. member

Activity: 503

Merit: 286

Quote from: cryptohashbrown on January 19, 2018, 05:01:37 PM

Ok, there's something I don't get,

Please, ELI5 here. Tether's utility within the crypto community is to provide safe-parking for your gains when the market is going red, right? Why does it matter whether or not you can cash out USDT if you could cash out changing to BTC and going to any fiat exchange?

I can see why Tether should have a 1:1 back up in some bank, ethically... But for market purposes, all they need to do is keep their value pegged to relative $USD within exchanges.

Idk, is there something I'm missing? Can't see what all the fuzz is about besides negative media attention...

Because they cannot control the "peg". The price is based on what people are willing to pay for it. That's why the value is not always $1 USD, it fluctuates up and down. If people lose confidence because they cannot exchange USDT for USD (because maybe they don't have the reserves), then the price of USDT will plummet.

GR92

member

Activity: 126

Merit: 90

So where can I transfer my dollar? Grin

NaissuR

full member

Activity: 126

Merit: 100

thether is the real bitcoin i hodl

cryptohashbrown

newbie

Activity: 4

Merit: 0

Ok, there's something I don't get,

Please, ELI5 here. Tether's utility within the crypto community is to provide safe-parking for your gains when the market is going red, right? Why does it matter whether or not you can cash out USDT if you could cash out changing to BTC and going to any fiat exchange?

I can see why Tether should have a 1:1 back up in some bank, ethically... But for market purposes, all they need to do is keep their value pegged to relative $USD within exchanges.

Idk, is there something I'm missing? Can't see what all the fuzz is about besides negative media attention...

Kruddler

jr. member

Activity: 51

Merit: 56

Quote from: york780 on April 22, 2017, 04:11:27 PM

Tether was fine until some exchanges like Kraken hate it. Tether to the moon! I expect a Tether pump soon.

Agreed. During the latest downturn, I mortgaged my house and maxed out my credit card to buy tether. It's definitely going to go up this week.

cyber-i

member

Activity: 108

Merit: 10

Quote from: adekogbe on January 04, 2018, 10:05:49 AM

Tether prices aren't all that encouraging at the moment and the issues with exchanges too is not helping, but I think in a couple of months, after its proven that its not a scam, I see the coin pumping up.
Pump to the moon

The whole idea of tether is to be pegged to USD. Any increase or pump would actually be counterproductive.

adekogbe

member

Activity: 854

Merit: 21

Tether prices aren't all that encouraging at the moment and the issues with exchanges too is not helping, but I think in a couple of months, after its proven that its not a scam, I see the coin pumping up.
Pump to the moon

kokojie

legendary

Activity: 1806

Merit: 1003

Hey if all the governments of the world can create fiat out of thin air, then why not BitFinex? As long as people believe 1 Tether = $1 USD, it can moderately inflate till infinity. I mean it still have a long way to go to match the amount of fiat the world government is pumping out every day.

ulhaq

sr. member

Activity: 503

Merit: 286

Quote from: cyber-i on January 03, 2018, 05:44:21 PM

Can someone explain, how is the Tether foundation supposed to make any money if Tether was really fully backed by USD? I mean, what would the motivation of the founders be knowing the price won't go up at all?

Transaction fees from USDT + exchange fees for USD to USDT and USDT to USD.

cyber-i

member

Activity: 108

Merit: 10

Can someone explain, how is the Tether foundation supposed to make any money if Tether was really fully backed by USD? I mean, what would the motivation of the founders be knowing the price won't go up at all?

ulhaq

sr. member

Activity: 503

Merit: 286

Quote from: Pumuckel21 on December 25, 2017, 03:42:59 PM

Can someone please explain me, how it can be that the amount of circulating theter is increasing since january pretty strong ?
Does this mean they can print money ? Why is there no inflation ?

See my post right above yours. They can issue as much tether as they want, but they claim that they only do it 1:1 for each USD deposited in their bank account. But the question is where are these USD coming from, since they say they cannot service US customers.

Pumuckel21

sr. member

Activity: 868

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Empowering crypto w/ sustainable energy

Can someone please explain me, how it can be that the amount of circulating theter is increasing since january pretty strong ?
Does this mean they can print money ? Why is there no inflation ?

ulhaq

sr. member

Activity: 503

Merit: 286

The market cap is now well over a billion: $1,228,723,761

Since they have announced that they cannot serve US customers, where is all the USD coming from that is being deposited and allowing them to issue more tether?

Are people depositing USD from other countries? Any non-US customers having trouble with withdrawals into fiat?

dektox

jr. member

Activity: 114

Merit: 7

The last audit they have is dated 15 Sep 2017 and audit was only for "internal use".

Some consulting firm said: "We are a consulting firm, Tether management team asked us to have a look at their accounts, we've looked at the bank account and found ~420 M USD, which we report to the management"

romani245

sr. member

Activity: 267

Merit: 255

Quote from: mvillar on December 01, 2017, 07:36:18 PM

There's a lot of FUD around tether right now, but what makes all these remarks distinct from other cryptos that are only used as money?

The difference is that Tether isn't a decentralized cryptocurrency. Its ledger is centrally administered, and the entire idea of backing crypto with USD is centralized. That's why they were able to unilaterally hard fork immediately after the recent hack. Tether.to is 100% in control of the ledger, and users have to trust them.

I gotta say, this "media offensive" that Bitfinex/Tether apparently went on is pretty disappointing. They didn't say anything new, just repeated "audit coming soon." Roll Eyes

mvillar

full member

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There's a lot of FUD around tether right now, but what makes all these remarks distinct from other cryptos that are only used as money?

sp_skeptic

member

Activity: 110

Merit: 14

Quote from: Iyanu14 on November 28, 2017, 12:56:25 AM

Can anyone tell me why tether doesn't go beyond $1 even though it's below it now. I found it strange.

The price of Tether is supposed to always be $1. That's the whole point of Tether. It is a lot easier to keep it from going higher than $1 than it is to keep it from going lower.

Quote from: multibit on November 27, 2017, 07:33:40 PM

Someone just pointed me out to a clause in their Terms and COnditions, saying that it should not be used for money laundering. I am unsure what all does that cover. But if they have the ability to pull out coins from someone's wallet who does that, then it would be the most stupid investment ever.

That's what you're worried about? Everybody has AML language. What should bother you is this:

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

...Tethers are not money and are not monetary instruments. They are also not stored value or currency.
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.

And this:

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

We make no representations, warranties, or guarantees to you of any kind, including with respect to any right of redemption or exchange of Tethers for any property.

And this:

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

In the event of any inconsistency between these Terms of Service and any other policies, FAQs, whitepapers, or pages on the Site, these Terms of Service shall prevail.

So if Tether says one thing on its home page, and another in its TOS, the TOS win! So much for that guarantee that Tethers are always backed 1:1 with money in the bank.

Iyanu14

member

Activity: 795

Merit: 10

Can anyone tell me why tether doesn't go beyond $1 even though it's below it now. I found it strange.

eddie13

legendary

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BTC or BUST

Quote from: btcone111 on November 27, 2017, 07:43:45 PM

I'm a little bit surprised as of now there is nothing big coming out of the whole situation?
I was expecting a little bit of negative impact on BTC price Huh

Not me really..
This usdt hack kind of showcases the strength of bitcoin..

btcone111

full member

Activity: 266

Merit: 110

I'm a little bit surprised as of now there is nothing big coming out of the whole situation?
I was expecting a little bit of negative impact on BTC price Huh

Topic: Tether: not even a scam - page 12. (Read 31060 times)