What the experts are saying about Tether

3년 전

Negative news is accentuated by a bear market. This is especially true with the cryptocurrency market as the moves are large and the investor base is inexperienced. As a result, the community tends to latch onto any negative news and disseminate it wildly. The negative news cycle during this bear market was intense. First it was news that China was banning Bitcoin mining and offshore cryptocurrency trading (turns out it was simply discouraging Bitcoin mining). Next was news that South Korea was banning cryptocurrency trading (which ultimately turned out to be false). Then it was news that the CFTC subpoenaed to Bitfinex/Tether. Most recently, it was news that India was also banning cryptocurrency trading (which also ultimately turned out to be false, nevermind the fact that the Indian cryptocurrency market is incredibly small).

We'll be focusing on the Bitfinex/Tether news and whether the huge negative sentiment around it is justified. I've already written a post on why I believe the negative news is overblown and in this post, I want to focus on what some cryptocurrency experts are saying about the situation. You'll find that most of them are dismissive of it.

But first, here's a brief primer on the Bitfinex/Tether situation. The whole debacle started with a Twitter account, Bitfinexed, posting several damning articles on possible misbehaviour by Bitfinex/Tether (two very closely related companies). Bitfinexed accused Tether of being insolvent, i.e. it does not have enough real USDs to back up their issued USDTs. Bitfinexed also accused Tether of continuing to fraudulently print USDTs and, with the help of Bitfinex, is using the USDTs to prop up the market.

In the midst of a raging bear market, Bloomberg released an article claiming that the US regulatory body, CFTC, very recently subpoenaed to Bitfinex which significantly alleviated fears that Bitfinex/Tether was insolvent (Bloomberg corrected the article to state that Bitfinex was actually subpoenaed almost 2 months ago). The bad news was accentuated by the fact that Bitfinex, which had been ceaselessly critical of Bitfinex/Tether for several months now, had ramped up the criticisms during the bear market.

Is the Tether "crisis" overblown? Here's my take on it. TLDR I think it's overblown. But don't just listen to me, here are what some cryptocurrency expert are saying on Twitter:






So the experts are not worried about Tether. If they were commiting fraud, Tether certainly went the extra mile to make it super transparent to all, including regulators, yet no problems have been found so far. Why panic?

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I'm not sure I see the relevance of the article about NEO (under "more reading") to all this, but that was a great article and I'm very glad I read it.

Upvoted ☝ Have a great day!

Tether is a temporary solution

good post
Thanx for sharing

  ·  3년 전

anytime :)

SatoshiLite Charlie Lee [LTC] tweeted @ 30 Jan 2018 - 19:53 UTC

1/ With respect to the Tether situation, it's expected for CFTC to subpoena Bitfinex to investigate if there are an… twitter.com/i/web/status/9…

el33th4xor Emin Gün Sirer tweeted @ 01 Feb 2018 - 01:31 UTC

Leaving Tether's solvency aside for a second, this whole episode, the fact that we are having this discussion at al… twitter.com/i/web/status/9…

fundstrat Thomas Lee tweeted @ 01 Feb 2018 - 01:15 UTC

The scenario for tether $USDT that fundamentally undermines crypto is if there is no collateral and thus an outrigh… twitter.com/i/web/status/9…

fintechfrank Frank Chaparro tweeted @ 31 Jan 2018 - 00:32 UTC

Important context for the Tether/Bitfinex subpoenas report by @business:

The fact that it happened 2 months ago -… twitter.com/i/web/status/9…

AriDavidPaul Ari Paul tweeted @ 02 Feb 2018 - 23:39 UTC

1/ The big tether tweetstorm: I get asked about tether constantly by reporters, investors, fellow fund managers, e… twitter.com/i/web/status/9…

Disclaimer: I am just a bot trying to be helpful.

Thanks @kjnk something I think about is Bitfinex makes so much money on fees in its exchange that it could easily afford to back Tether with USD.