• Light/Dark
  • Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.
  • We have made minor adjustments to how the search bar works on ResetEra. You can read about the changes here.

Cryptocurrency |OT2| Money's New ERA Shoots for the Moon! | Read OP for Thread Rules

Reader mode

Deleted member 8561

user requested account closure
Banned
Oct 26, 2017
11,284
People are clawing their way out of Tether because Bitfinex has been rumored to be insolvent and Tether has been acting funky.

They (Bitfinex) have suspended all FIAT deposits because they apparently no longer have a bank.

Lots of other "stable coins" (which actually act like stable coins and to increase demand), so people are trying to get off a potential sinking ship.

That being said, if you're on an exchange that is Tether based, I don't think it inherently matters if you're in some other stable coin. Unless specific actions are made by exchanges to cut itself off from Tether, assume the potential worse when shit starts popping off.
 
Daitokuji

Daitokuji

Member
Oct 27, 2017
2,602
So I take it that there is no mechanism for people to actually exchange their tethers for real dollars? Otherwise it would never be <$1
 
Daitokuji

Daitokuji

Member
Oct 27, 2017
2,602
But the tether company won't exchange them back for USD, correct? Like how you used to be able to exchange dollars for physical gold via the government. That's why the value of it should never be anything less than $1 because as a last resort, the tether company will exchange them for the dollars that they supposedly have.

The fact that tether won't get a simple audit done seems proof that the whole thing is a scam and the crypto currency market is going to take another Mt. Gox style hit when it collapses.
 
Drifters_

Drifters_

Banned
Oct 25, 2017
1,237
Daitokuji said:
But the tether company won't exchange them back for USD, correct? Like how you used to be able to exchange dollars for physical gold via the government. That's why the value of it should never be anything less than $1 because as a last resort, the tether company will exchange them for the dollars that they supposedly have.

The fact that tether won't get a simple audit done seems proof that the whole thing is a scam and the crypto currency market is going to take another Mt. Gox style hit when it collapses.
Click to expand...
Click to shrink...

That's the theory right now-- That's why stable coins are becoming so popular because of Tether's history and ongoing struggle to inspire any type of confidence from the market as being physically backed.
 
Brandson

Brandson

Member
Oct 26, 2017
2,219
Doing analysis of tether wallets is interesting, but it's very hard to pinpoint exactly what is going on or determine what actual issues the parties are facing, just from the wallet balance analysis.

One thing that I expect will become clear is that if Tether ceases to exist, crypto trading volume is going to shrink massively, which will catch a lot of people by surprise, but it shouldn't. While fiat trading volume can also be faked, it is a lot easier to fake Tether trading volume, especially with weak or absent KYC policies on exchanges.

Coinbase's BTC/USD pair is the 27th ranked for daily volume, while Bitstamp is 45, and Gemini is 53 as of today. See: https://coinmarketcap.com/currencies/bitcoin/#markets. I ask that you consider the possibility that real trading volume for BTC/USD would have those 3 exchanges ranked 1, 2, and 3 respectively, and everything else is massively overstated, fake, or non-existent. It is ludicrous what names appear above those in the exchange list, and points to a huge problem with crypto that needs addressing.
 
Drifters_

Drifters_

Banned
Oct 25, 2017
1,237
Well if you look at Binance USDT/BTC its all bots really so that analysis Mr B. stats above is most likely as accurate as we're going to get.
 
Drifters_

Drifters_

Banned
Oct 25, 2017
1,237
Yeah the CREAM story seems to be the salty owners of other coins trying to trash VeChain into people dumping. Doubtful given the node program is pretty strong.
 

Deleted member 8561

user requested account closure
Banned
Oct 26, 2017
11,284
Donos said:
Where's my promised tetherimplosion fire sale?

Btw, this name gave me a good laugh. A privat coin name "Pirate" (ARRR)... yeah
https://steemit.com/privacy/@lilszi/pirate-chain-arrr-all-about-privacy-and-nothing-about-piracy
Click to expand...
Click to shrink...

Tether is apparently opting for the slow burn as it

1) It's owner/creator currently has no bank
2) Because Bitfinex has no bank they are currently opting to blatant money laundering for withdrawals (twitter threads of people being paid by shell companies)
3) Everyone is exiting Tether and nobody is buying it. If Tether was such a safe and sure fire thing, the whales who have insider info would be what amounts to literally buying 1 USD for 97 cents or so.
4) https://threader.app/thread/1051560132235030528

Since it's inception Tether was always gambling with the fact that the US government and the FBI don't really like the idea of an imitation dollar. The way Bitinex operates in terms of pumping Tether and the actual process of doing their day to day banking is clearly illegal in all definitions.

Anyhow, what the community under appreciates at the moment is that illiquidity is not the only consequence of losing a banking relationship. Banks do talk to each other (quite a bit) and it is difficult to keep billions of dollars under the radar indefinitely.

Eventually, a bank or, more likely, a regulator is going to say "Actually this doesn't look like a legit deposit that we're uncomfortable with supporting due to AML/regulatory reasons. It looks an awful lot like proceeds of crime intermingled with grey money."

And the terrifying outcome, from the cryptocurrency economy perspective, is the regulator doing what the USFH did with respect to Mutum Sigillum (Mt Gox's US front): "OK, we're going to give you two choices."


Door #1: Prove that it's legal money. This should be trivial for you because KYC is the law and your compliance should be automatic. So have your lawyer suit up. BTW we expect this to take 3+ years.

Door #2: We propose a 50% haircut.

Gox's bankruptcy administrator took the haircut. That was an eminently sensible call.

I think there is a material risk that Tether absorbs a billion dollar hair cut.
Click to expand...
Click to shrink...

The current spread between Bitfinix and Coinbase is like 150 dollars. It's only gonna get worse.

Twitter is basically calling it the early stages of a bank run. It doesn't sound far off.
 
Last edited:
Donos

Donos

Member
Nov 15, 2017
6,530
Still have no problem with it. If it implodes, it still won't be crypto ending. Market will be even healthier after it i guess. If it doesn't implode, it rides on as a to-big-to-fail meme till it finally goes up in flames. Have my popcorn ready either way :)
 
artsi

artsi

Member
Oct 26, 2017
2,686
Finland
Daitokuji said:
So the tether scam is finally unravelling?
Click to expand...
Click to shrink...

Well, USDT could implode and very bad things will happen.
Or this could be just FUD that causes people to buy BTC with their USDT and trigger a BTC bull run.

Crypto markets ¯\_(ツ)_/¯

Anyway, I've withdrawn all my assets from Binance today, whatever is happening I don't want my coins to be in any exchange until things clear up.
 
Donos

Donos

Member
Nov 15, 2017
6,530
artsi said:
Looks like it started, holy shit look at BTC run.

Went from $6300 to $7680 in an hour, now dropping.

https://www.binance.com/en/trade/pro/BTC_USDT
Click to expand...
Click to shrink...

https://www.quora.com/Why-did-the-p...spike-up-October-15-2018/answer/Marius-Kramer

At first, there were scam rumors for Tether, because only USDT pairs pumped. Furthermore, there was the rumor that all USDT pairs will be delisted from Binance.

That's why everybody thought all USDT pairs are pumping because everyone wants to get out of USDT.

An hour later Kucoin suspended tether deposits and withdrawals. https://www.google.de/amp/s/bitc...

These were all the assumption.

However, the actual reason is most likely very simple.

It was just a whale buying up lots of Bitcoin with lots of USDT that he held. In fact, he bought up $500M worth of Bitcoin, which made the Bitcoin market cap go up by $25B.
Click to expand...
Click to shrink...

It was probably one of the 10 largest Bitcoin whales who had cashed out half a billion into USDT back in January and now decided to sell all Tether, because of all the sketchiness surrounding it and because he thought Bitcoin has probably found its bottom. That's why he decided to buy back in now.
Click to expand...
Click to shrink...
 

Deleted member 8561

user requested account closure
Banned
Oct 26, 2017
11,284
Don't mind Tether, just selling at a normal...

95 cents on the dollar.

Edit: Back to a $600 dollar premium on Binance.

 
Last edited:

Deleted member 8561

user requested account closure
Banned
Oct 26, 2017
11,284
Donos said:
Still have no problem with it. If it implodes, it still won't be crypto ending. Market will be even healthier after it i guess. If it doesn't implode, it rides on as a to-big-to-fail meme till it finally goes up in flames. Have my popcorn ready either way :)
Click to expand...
Click to shrink...

If Tether implodes it will absolutely spell a massive bear market for years to come.

It will have invalidated the entire 2017 bull run, a market pump based on literal fraud and fake USD being printed endlessly.
 
Donos

Donos

Member
Nov 15, 2017
6,530
Good, that Crypto is so predictable :)
I also have time if that really happens but i doubt it (a deep several year bear market).
 

Spuck-

Banned
Nov 7, 2017
996
Tether collapsing? how is that possible when each tether is backed by exactly 1 actual us dollar that totally exists that it can definitely be redeemed for?!
 

Spuck-

Banned
Nov 7, 2017
996
Daitokuji

Daitokuji

Member
Oct 27, 2017
2,602
The fundamental problem with cryptos is that there is no real world usage. Bakkt will at least help people buy and sell without going through shady exchanges. I expect financial institutions to try to sell their clients on cryptos so that may boost the price.
 
Drifters_

Drifters_

Banned
Oct 25, 2017
1,237
Daitokuji said:
The fundamental problem with cryptos is that there is no real world usage. Bakkt will at least help people buy and sell without going through shady exchanges. I expect financial institutions to try to sell their clients on cryptos so that may boost the price.
Click to expand...
Click to shrink...
Bakkt doesn't solve the spend portion of Crypto and probably won't for a while. It will simply tie BTC to a store of value which is fine, but missing Satoshi's vision.
 
Wimps

Wimps

Member
Oct 27, 2017
467
Daitokuji said:
The fundamental problem with cryptos is that there is no real world usage. Bakkt will at least help people buy and sell without going through shady exchanges. I expect financial institutions to try to sell their clients on cryptos so that may boost the price.
Click to expand...
Click to shrink...
No real world usage? You can use bitcoin to buy stuff.

You mean wide spread adoption. That's still lacking yes. But things don't change overnight. It will go slow.
 

Deleted member 8561

user requested account closure
Banned
Oct 26, 2017
11,284
http://blog.bitfinex.com/announcements/improved-fiat-deposit-system/

Today we are introducing a new, improved and increasingly resilient fiat depositing system for sending fiat currencies to Bitfinex.

This new process will once again allow KYC-verified users from around the world to initiate deposits across USD, GBP, JPY and EUR.

The new fiat deposit system will function as follows:

  • A user wishing to initiate a fiat deposit on Bitfinex will create a deposit request to signal interest in completing a deposit. Through this deposit request, a user will be able to specify the exact amount and currency which they wish to deposit.
  • Following an account review (which may take up to 48 hours), the user will receive a deposit notification which will include, among other things, bank details specific to the individual's transaction.
  • The user will be able to initiate the deposit based on the information received through the deposit notification. The deposit will subsequently be processed within 6-10 business days from Bitfinex.
Click to expand...
Click to shrink...

Just some casual money laundering with unknown third parties, nothing to see here

Who needs banks amirght

 
Last edited:
Luschient

Luschient

Member
Oct 30, 2017
1,622
Hmmm, ZRX now live on Coinbase.

CB app gave me a heart attack since it put ZRX's price on BTC so for a minute I thought BTC had crashed to $0.85.
 
artsi

artsi

Member
Oct 26, 2017
2,686
Finland
Meanwhile VET keeps on building legit blockchain business.

- DNV GL
- VeChain
- PICC (People's Insurance Company of China)
- BYD Auto
- Bright Food Group
- Tsinghua University

today signed a joint agreement regarding a blockchain (VeChain) based carbon banking ecosystem.
My bags are light as ever despite any FUD.

 
Donos

Donos

Member
Nov 15, 2017
6,530
Stumbled over this ICO and future shitcoin, which i'm not interested in, but their event video is pretty ballsy:

Go big or go home.
 
Drifters_

Drifters_

Banned
Oct 25, 2017
1,237
VeChain is either going to go down as the new IMF of Blockchain or the biggest scam in the history of the planet.
 
Cipherr

Cipherr

Member
Oct 26, 2017
13,435
Sup crypto era. Anything new? Another month before I start accumulating again once holiday spending is over just before the holidays.

Looks barren in here, lol.
 
Sulik2

Sulik2

Banned
Oct 27, 2017
8,168
Wow I have't paid attention to the market since I sold out in January and the first posts I see are still about Tether? So is that pyramid scheme continuing to destabilize the entire market?
 
Donos

Donos

Member
Nov 15, 2017
6,530
BAT is doing rather well atm (+50% for the month). One project i have my eyes on for a long time. Brave Browser downloads are rising too.
 
Donos

Donos

Member
Nov 15, 2017
6,530
Stablecoin on coinbase (Ethereum based)
https://blog.coinbase.com/coinbase-...e-launch-of-usdc-a-digital-dollar-2cd6548d237

Starting today, Coinbase customers in supported jurisdictions can buy, sell, send and receive the USD Coin stablecoin (USDC) at Coinbase.com and in the Coinbase iOS and Android apps
Click to expand...
Click to shrink...

The new USDC stablecoin is fully collateralized by US dollars and supported by Coinbase and Circle as co-founding members of the CENTRE Consortium
Click to expand...
Click to shrink...

The longer it takes for tether to go up in flames, the more alternatives will arise.

Why a stablecoin when you can trade to Fiat anyway?
The advantage of a blockchain-based digital dollar like USDC is easier to program with, to send quickly, to use in dApps, and to store locally than traditional bank account-based dollars. That's why we think of it as an important step towards a more open financial system.

Use cases for USDC today include:

  • Improved send and receive. Two Ethereum wallets can quickly send and receive any amount of USDC at any time of day. Large transfers for business purposes become as easy as small e-commerce payments. Consumers can use the Coinbase app to send USDC to someone, while remaining confident the value is stable.
  • Use in dApps and exchanges. There is a burgeoning ecosystem of crypto dApps, exchanges, and blockchain-based games. A USDC follows the ERC20 standard, which means it can be used with any app that accepts tokens based on that standard. The USDC can thus be used as a stable digital dollar to buy items in the crypto ecosystem, from Cryptokitties to tickets for blockchain-based games.
  • A programmable dollar. For developers and fintech companies, a digital dollar like USDC is easier to program with. For example, given the private keys for USDC, a program can easily send and receive them back and forth using the public Ethereum blockchain.
Click to expand...
Click to shrink...
 
Last edited:
Reader mode
You must log in or register to reply here.