Topic: USDT Tether Tale (Read 451 times)

I've shared the same concerns about the Tether supply. It's increased more than 6x since Bitfinex (and Tether) lost its banking capabilities. But this can possibly be explained if the hundreds of millions of USDT represents an exodus of funds from Bitfinex to exchanges that accept USDT for deposit, like Poloniex, Bittrex or Kraken.

Even aside from the worry that they are being printed, they are tied to Bitfinex (hence third party risk), and frankly, I think Bitfinex is facing a legal shitstorm in the future, for being an unlicensed MSB and for their whole token distribution scheme. If anything happens to Bitfinex, the value of USDT could plummet, and since it is a standalone asset (not USD obligations of another exchange), customers on many exchanges could be devastated as a result.

I also like their interface and trading options a lot, but they come with a lot of baggage. On top of it, they are a security risk, given that they still can't even explain how they got hacked last year.

https://hackernoon.com/the-curious-tale-of-tethers-6b0031eead87
https://medium.com/@bitfinexed/are-fraudulent-tethers-being-used-for-margin-lending-on-bitfinex-5de9dd80f330

Now I  don't want to FUD and fine if this article is not approved here but..

Basically shows that USDT is being printed out of thin air.  Not many people seem to care about it  on Reddit.

I have stopped using  Bitfinex due to this article and wary of using Bittrex which also uses USDT, although Bittrex is more compliant with US laws compared to Bitfinex. If USDT is busted can Bittrex come out and say .. sorry there is no money ..

Sad that I got scared of using Bitfinex though .. it is the best platform for day to day trading.

I guess I want to hear opinions including why it is fine that they print it. Printing USDT in itself is a "scheme". They are effectively printing Bitcoin or anything that trades on any USDT platfrom, since they can print USDT as much as they want.

Effectively they must have printed as much USDT as to cover all deposits accross all USDT exchanges .... a lot.  Lets say it is fine for them to print it since crypto pumping covers it.......  But what if someone(US SEC, FBI, etc ) shuts down USDT for some reason .. for example there is an audit that shows there is no USD reserve therefore the claims on the USDT site are fraudulent. If they close down USDT  servers, would Bittrex survive long enough to pull coins out ? Could Bittrex continue working long enough to withdraw,  if USDT servers were shutdown ?  

Also, has anyone seen a USDT Audit , which they claim on their site is done "regularly" ?