Topic: USD Thethers just unraveled here's the Crypto Meltdown (Read 275 times)
Tether should have been investigated as soon as the company who had issued it claimed that it was backed by dollars. We talsk so much about "trustless systems" and then we just believe just a claim?
USDT has always been a destabilizing factor in cryptocurrency markets.
Because they may have too many USDT issues, and the USDT's finances are not disclosed, they may be suspected of manipulating market prices.
Because they may have too many USDT issues, and the USDT's finances are not disclosed, they may be suspected of manipulating market prices.
Must say I have alwasy been a little wary of Tether, and this latest story of their auditors ending the relationship certainly will not give ayone much confidence. As long as the coins are backed by the $ they are supposed to represent I don't see the issue with creating more of them, but if it is frational reserve lending then that will be a problem.
Look out for a new improved version of Tether, X8 just finished up their ICO
Look out for a new improved version of Tether, X8 just finished up their ICO
People are going to be like "FUUUUUUUUUD" but we need to be real for a second. This is happening and it is going to hurt. I will be launching a video on youtube talking about it tomorrow.
The irony here is this is exactly one of the reasons why BTCBTCBTC and cryptocurrencies were created for, to avoid scenarios like these. I really do hope Tether did not operate on a fractional reserve to cover for BitFinex's previous fiascos.
There is no way they have money to back tether. It is just being created out of thin air. How can they jus create 600 million tethers?
In a related development, 600,000,000 Tethers just came into existence within the last few hours, according to coinmarketcap.
If there is a meltdown, what are the odds people will flock to established altcoins?
Depends how much real world utility those tokens will have. I think if there is a burst, then all the speculative coins like ETH, NEO etc offering no actual value will fall, whereas alts that offer shares/dividends for some real life company will probably not crash. That's IF the Tether thing is found to not have their reserves to back it up.. they very well may.
So far, there is no meltdown - few hours after the news I see the crypto market is doing great, Market Cap is over $583B and looks like ETH gained 10% and BTC 6%. The auditor never confirmed anything, so it might be a simple speculation wich of course was immediately picked up by the media just to boost the audience with another BREAKING NEWS title. If indeed Friedman won`t complete the audit procedures, suspicion will plane over Tether and it might affect the whole market...
Read his article
It says exit of tether causes spike in prices coins
We seeing it
Then people lose faith in exchanges exit to wallets and banks
Then there's not enough coins due to fake tether
The exchanges fall like dominoes
So we are seeing what he said happen
The spike before the crash of exchanges not being able to cover the huge exit that's in progress
Guys, keep your shirts on. Even in the worst case scenario there are only 2.2b tethers, even if they are all made out of thin air I'm pretty sure a 600b market can absorb that quite easily.
All the article says is that they had a falling out with thei auditor. Tether is suspect, but small. Compare it to bitconnect destruction and you get an idea why the market has 0 reaction to the news.
Here's an example link, FYI:
https://www.coindesk.com/tether-confirms-relationship-auditor-dissolved/
https://www.coindesk.com/tether-confirms-relationship-auditor-dissolved/
omg why the hell are there still people reading coindesk
If there is a meltdown, what are the odds people will flock to established altcoins?
Depends how much real world utility those tokens will have. I think if there is a burst, then all the speculative coins like ETH, NEO etc offering no actual value will fall, whereas alts that offer shares/dividends for some real life company will probably not crash. That's IF the Tether thing is found to not have their reserves to back it up.. they very well may.
So far, there is no meltdown - few hours after the news I see the crypto market is doing great, Market Cap is over $583B and looks like ETH gained 10% and BTC 6%. The auditor never confirmed anything, so it might be a simple speculation wich of course was immediately picked up by the media just to boost the audience with another BREAKING NEWS title. If indeed Friedman won`t complete the audit procedures, suspicion will plane over Tether and it might affect the whole market...
Read his article
It says exit of tether causes spike in prices coins
We seeing it
Then people lose faith in exchanges exit to wallets and banks
Then there's not enough coins due to fake tether
The exchanges fall like dominoes
So we are seeing what he said happen
The spike before the crash of exchanges not being able to cover the huge exit that's in progress
If there is a meltdown, what are the odds people will flock to established altcoins?
Depends how much real world utility those tokens will have. I think if there is a burst, then all the speculative coins like ETH, NEO etc offering no actual value will fall, whereas alts that offer shares/dividends for some real life company will probably not crash. That's IF the Tether thing is found to not have their reserves to back it up.. they very well may.
So far, there is no meltdown - few hours after the news I see the crypto market is doing great, Market Cap is over $583B and looks like ETH gained 10% and BTC 6%. The auditor never confirmed anything, so it might be a simple speculation wich of course was immediately picked up by the media just to boost the audience with another BREAKING NEWS title. If indeed Friedman won`t complete the audit procedures, suspicion will plane over Tether and it might affect the whole market...
If there is a meltdown, what are the odds people will flock to established altcoins?
Depends how much real world utility those tokens will have. I think if there is a burst, then all the speculative coins like ETH, NEO etc offering no actual value will fall, whereas alts that offer shares/dividends for some real life company will probably not crash. That's IF the Tether thing is found to not have their reserves to back it up.. they very well may.
If there is a meltdown, what are the odds people will flock to established altcoins?
I think it will continue to do a good job of staying pegged to the dollar... How they make money... I don't really understand it.
They take their dollars, give people a sketchy token, buy Bitcoin with the dollars and make bank. It's really simple actually. The give out something that the generate by the hundreds on millions over and over again and keep buying and inflating crypto. This is definitely going to be huge because Tether is so big that when it fails (not if, when) we're all going to feel it. Shit that's annoying.
At least someone else understands it!!
There are some people who have unshakable faith that Bitcoin will continue to climb forever, even when things like this are the driving force behind it.
WOW
If this is the end of tether, you can bet your hard earned BTC that it will fall... and fall hard. If you think you saw a bloodbath of crypto in early January, just wait and see what this CAN do when the fake Tether additions are kept from the markets.
If this is the scam that brings down crypto, how ironic will it be? Digital currencies were mostly used because people hated the fact that central bank printed money as they wanted. Now, tether seems to be doing the exact same thing! How's this for decentralized currency?
If this is the end of tether, you can bet your hard earned BTC that it will fall... and fall hard. If you think you saw a bloodbath of crypto in early January, just wait and see what this CAN do when the fake Tether additions are kept from the markets.
If this is the scam that brings down crypto, how ironic will it be? Digital currencies were mostly used because people hated the fact that central bank printed money as they wanted. Now, tether seems to be doing the exact same thing! How's this for decentralized currency?
Tether got popular, and it's pretty amazing people and exchanges adopted it like this. I will never really trust it.
I think it will continue to do a good job of staying pegged to the dollar... How they make money... I don't really understand it.
They take their dollars, give people a sketchy token, buy Bitcoin with the dollars and make bank. It's really simple actually. The give out something that the generate by the hundreds on millions over and over again and keep buying and inflating crypto. This is definitely going to be huge because Tether is so big that when it fails (not if, when) we're all going to feel it. Shit that's annoying.
Here's an example link, FYI:
https://www.coindesk.com/tether-confirms-relationship-auditor-dissolved/
https://www.coindesk.com/tether-confirms-relationship-auditor-dissolved/
omg why the hell are there still people reading coindesk
WOW
If this is the end of tether, you can bet your hard earned BTC that it will fall... and fall hard. If you think you saw a bloodbath of crypto in early January, just wait and see what this CAN do when the fake Tether additions are kept from the markets.
If this is the scam that brings down crypto, how ironic will it be? Digital currencies were mostly used because people hated the fact that central bank printed money as they wanted. Now, tether seems to be doing the exact same thing! How's this for decentralized currency?
If this is the end of tether, you can bet your hard earned BTC that it will fall... and fall hard. If you think you saw a bloodbath of crypto in early January, just wait and see what this CAN do when the fake Tether additions are kept from the markets.
If this is the scam that brings down crypto, how ironic will it be? Digital currencies were mostly used because people hated the fact that central bank printed money as they wanted. Now, tether seems to be doing the exact same thing! How's this for decentralized currency?
only idiots trusted teather in the first place, tether LTD with 4 employees effectivly prints more USD than the federal reserve....
If tether can't have enough money to make their entire system worth its data then there's definitely going to be a slide for a large portion of the market. The good news is that people might flock back to Bitcoin if USDT can't find enough money to keep their currency liquid. It's not even surprising though, to be honest. I never thought that they had enough money to maintain their operation and I was waiting for some news like this.
Hopefully, we can see Bitcoin go up in response to the people flocking away from USDT. It's the only way to keep their money in cryptos right now, at least until something else comes along that will act as a proper tether.
Hopefully, we can see Bitcoin go up in response to the people flocking away from USDT. It's the only way to keep their money in cryptos right now, at least until something else comes along that will act as a proper tether.
People are going to be like "FUUUUUUUUUD" but we need to be real for a second. This is happening and it is going to hurt. I will be launching a video on youtube talking about it tomorrow.
I think it will continue to do a good job of staying pegged to the dollar... How they make money... I don't really understand it.
BitFinex owns Tether, so they're only happy cause it brings more and more people to their exchange as they're able to give people the stability of the dollar on an exchange which doesn't do much KYC, or even any anymore as they're not even doing business in the United States.
While I do think this is a large problem which is brewing, I do think it will take some time until shit really does hit the fan and we are in FULL panic mode. As of right now, we're OK. Awaiting some sort of issues with Tether and mass withdrawals is when we'll see a meltdown.
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