I think a lot of people are waiting for a viable alternative, because there is a reasonable expectation that the US govt. might take legal action against the parent company for fraud. No one wants to be sitting in USDT when that happens, but right now people keep trading it because there is nothing else that fulfills its purpose, and there is also the false security of seeing so many others still doing it. I bet these exchanges heavily in USDT know they’re playing against time and are praying for a way out before the plug is pulled.
Because they’re saying amounts of new tether have receive dollar deposits in amounts too large to be feasible within a given period. They print it on demand, not on availability. I don’t recall the exact numbers anymore from when I really looked at it last year when the govt first opened the investigation, but the numbers just didn’t add up.
Even if the numbers on the surface did not add up, the backend could be telling a very different story. I’m not saying the 100% have it in the bank at all times, but I’m pretty proof of existence should not be hard for them.
Honestly, until the investigation against them falsifying the claim is closed I’m going to be cautious with that coin. I never let myself sit in it for more than a few days, and feel like I’m always increasing my risk when I do. I hope it is decided in their favor (meaning they can prove their claim is true), but I find it too unlikely to bet on.
Tether/Bitfinex were served subpoenas on December 6, 2017, and shortly thereafter the largest amounts of Tether were printed and volume and price action exploded to the highest levels in cryptocurrency history. It is 99% probably not mere coincidence. People are leery of the actions of these entities because they have already drawn investigative scrutiny and are likely being set up to fall when central banks and governments themselves have problems keeping people locked in to their currencies as cryptocurrencies start to look like more viable alternatives for people to park their cash or funnel funds as crises start to hit multiple nations at once.
I think a lot of people are waiting for a viable alternative, because there is a reasonable expectation that the US govt. might take legal action against the parent company for fraud. No one wants to be sitting in USDT when that happens, but right now people keep trading it because there is nothing else that fulfills its purpose, and there is also the false security of seeing so many others still doing it. I bet these exchanges heavily in USDT know they’re playing against time and are praying for a way out before the plug is pulled.
Well how can we be certain that they are committing fraud? The numbers that bitfinix pulls could very easily cover the cost of tether.
Because they’re saying amounts of new tether have receive dollar deposits in amounts too large to be feasible within a given period. They print it on demand, not on availability. I don’t recall the exact numbers anymore from when I really looked at it last year when the govt first opened the investigation, but the numbers just didn’t add up.
Even if the numbers on the surface did not add up, the backend could be telling a very different story. I’m not saying the 100% have it in the bank at all times, but I’m pretty proof of existence should not be hard for them.
Honestly, until the investigation against them falsifying the claim is closed I’m going to be cautious with that coin. I never let myself sit in it for more than a few days, and feel like I’m always increasing my risk when I do. I hope it is decided in their favor (meaning they can prove their claim is true), but I find it too unlikely to bet on.
Tether/Bitfinex were served subpoenas on December 6, 2017, and shortly thereafter the largest amounts of Tether were printed and volume and price action exploded to the highest levels in cryptocurrency history. It is 99% probably not mere coincidence. People are leery of the actions of these entities because they have already drawn investigative scrutiny and are likely being set up to fall when central banks and governments themselves have problems keeping people locked in to their currencies as cryptocurrencies start to look like more viable alternatives for people to park their cash or funnel funds as crises start to hit multiple nations at once.