Topic: The market effect of Tether collapse - and our survival strategy (Read 391 times)

Obviously tether and the probability of it imploding is not a noise and a whole lot of people have always tend to imagine something like this coming into play in the long run, until they get some proof to get their doubts subdued. There is a lot fishy with tether and bitfinex and that is something that has really raised huge eyebrow for a while now but how things turn out at the end based on whether tether is backed by a physical cash or not, is something that we would only have to wait to see but for now, nothing is guaranteed and the best is to always be watchful of the things going on in the market.

Tether has always been fishy for a very long time now and I can tell the level at which most people are actually being fearful with the impact tether could cause in the market based on the fact that it has been used to pump the market over the years. What is important is to always stay vigilant in the market and be very vigilant for information. The whole thing about tether being audited is even something we have no idea how it all ended or if they really were able to prove they are holding real cash as a backup for every tether printed, but at the same time, i would still be very careful.

Very interesting article.
Tether is surely fishy coin and we should aware holding it.
But I disagree with you. Tether is a good coin for manipulation, even if the market value is not the biggest one .

As long term value investors I don’t pay attention for the noises but this is something I feel it’s not just a noise.

Well, we'll see now how it plays out. It appears exchanges' APIs don't work since all listing sites from CoinCodex.com, through CMC, and even cryptowat.ch don't display the correct price. When USA citizens wake up, we'll see the true nature of the beast.

It appears that Tether could be looking for new banking partners to hold the reserves backing its USDT stablecoin.

https://coincodex.com/article/2430/noble-bank-has-lost-bitfinex-and-tether-as-customers-according-to-report/

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Hi @yo_mama

Great post!
Scenario 6 is the likely one imo. I agree BTC or ETH might pump on exchanges with USTD only as traders would want to sell out of those exchanges. However, I think the exchanges that do accept USD fiat would experience a price differential for the major cryptos because you don't have people on those exchanges suddenly trying to find a safe haven crypto. That would then lead to a momentary arbitration across exchanges (which the bots would no doubt pick up very quickly) until the increased prices of the major cryptos are leveled out across the globe.

@play regarding your points on market sentiment, liquidity and volume, in your view:
 - is there a possibility that market sentiment might not destroy USDT, but indeed support it at some level. ie. the unravelling of fraud for USDT would result in the BTC/USDT cross being say 70% of what the price is at the time? Otherwise I dont see reason for people to keep USDT should USDT turn out to be a complete fraud
 - regarding liquidity, in fiat markets where there is a sudden lack of liquidity, asset prices start to suffer though there is also a flight to safety to assets like gold. There is also flights to safely to alternative  currencies that can be observed in the cross currency spreads due to increased demand. Do you think that rather than the markets tumbling, the market will simply reposition itself such that Btc becomes the quote currency?


I also would like to hear what everyone thinks about the role the following entities would play:
 - bots
 - whales
 - the exchange itself (would they halt trading and prevent withdrawls)

Lol it seems Tether is changing its target of pumping from BTC to ETH.

https://cryptovest.com/news/tethers-abandon-bitcoin-minting-moves-to-ethereum/

Is this fake news or legit?

Uncertain time.

So news... Bitfinex is planning to build decentralized exchanged on EOS...

This is concerning.

http://blocktribune.com/crypto-exchange-bitfinex-build-decentralized-exchange-eos-io-platform/

Ha, Jordan Belfort (the real life Wolf of Wall Street guy who did the $200 million pump and dump) says this whole cryptocurrency mania is a giant pump and dump, orchestrated by Tether/Bitfinex.


See the interview video:
https://www.youtube.com/watch?v=XlBa5liuy9Q&t=627s

So, did bitfinex provide evidence or is tether a scam?

I think such a collapse would significantly change the price reality. Clearly, few hundred million injected in the market at moments of long bear run would change bear into bull. Then you step out slowly to reenter again for another bull. This is much more than 2bn. Thisnwould inflate the whole crypto

the op statement is very correct, if we hodling and buy back, then 3 years to come we will bring one giant bag of profits.
we will ask them, hey where are you in 3 years  

enjoy for a moment and we'll smile back, I'm sure in Q2.

I dont any other good choice than holding.
I know every choice has their own risk and nothing is no risk here so we have to be wise to do something here.
If we think the money that we invest here can afford to loss so i think holding will not hurt you as holder.

This is what hypothesis (6) says:


That would be a strange situation, but likely it won't last long because people then panic sell BTC for fiat.

Isn't tether collapse good for bitcoin cause everyone exits out of tether, but i have not been seeing that happening.

Or, is it totally possible that Tether will be "safe"  by the end?
Tether is now burning their tokens:
https://cryptovest.com/news/bitcoin-cash-strange-transaction-appears-on-tether-minting-wallet/

That means, if tether secretly burn all fake tokens now, any investigation later will only find that Tether is indeed running 1:1 backup.

So looks like on legal paper Tether doesn't guarantee it's 1:1 backed by USD.
Now it looks like collapse of Tether is more likely than not.

Such toxic terms of service. Basically it prevents you from taking legal actions against them if Tether collapses and causes you heavy loss. Even if you sue them you'll likely lose in court.
Dirty but "standard" business practice.

In recent weeks there have been very negative news for the world of cryptocurrencies, I hope that Tether becomes more transparent and that there is no collapse because it would be a disaster for the entire industry

From the Tether Terms of Service (updated in January):

No Representations & Warranties by Tether: Tether makes no representations, warranties, or guarantees to you of any kind. The Site and the Services are offered strictly on an as-is, where-is basis and, without limiting the generality of the foregoing, are offered without any representation as to merchantability or fitness for any particular purpose.

Can anyone tell what are the guarantees, if any, that Tether won't switch to fractional reserves?