kurtwuckertjr posted on October 28, 2019 21:48:42
Ever wanted the worst parts of fiat to combine with the worst parts of the bitcoin economy? That’s tether. A fractionally back “fake” dollar issued by thieves in order to artificially pump the price of BTC so insiders can launder out “real” dollars in a giant Ponzi scheme that exists between venture capital firms that own Blockstream, Bitfinex, Block One and Tether Corp.
This is the real, modern creature from Jekyll Island.
mistergrin posted on May 15, 2019 17:36:18
In late April 2019, Bitfinex and Tether's parent company iFinex got "outed" by New York financial regulators for "losing" $750 million of Tether funds in late 2018. At that point, their USDT/Tethers were no longer backed 1-to-1 with US dollars anymore. Many crypto influencers are saying this may cause a "bank run" with everyone trying to withdraw funds from Bitfinex - much like Mt. Gox 2.0. Twitter analyst @Bitfinexed especially has been calling out all the shady stuff regarding Bitfinex for years and this recent event has given him a lot more ammo. Personally I don't care if Tether stays or dies since there are a lot more stablecoin options in the marketplace these days. I'd stay away from Tether and definitely do not HODL Tether for long periods of time.
Update (May 2019): Bitfinex raised $1billion from Chinese investors to fully recoup their Tether imbalance. Still a lot of shadiness and lack of info surrounding that debacle but for now I won't rate it the worst rating.
Crypto Anonymous posted on April 20, 2019 23:29:36
Indeed there is no proof at all that circulating tokens are fully backed by USD and thus the fractional reserve banking theory Tether is accused of can't be debunked so far. The mere fact that they aren't able/willing to provide an official audit despite their promise to do so, makes it all the more suspicious. It has been the only functioning stablecoin for the longest time though and due to its liquidity quite useful and convenient on most exchanges. But because there is practically no way of cashing out USDT tokens at Tether for regular users, a real bank run seems quite impossible. The market price could however completely implode and we already have seen the first crack in its reputation with the recent Tether crash where it lost its dollar peg for quite some time and has a hard time to recover. I would only use USDT if I absolutely had to and for the shortest amount of time have funds in it. There are other stablecoins available now if you wanna store against USD value for a bit longer.
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