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Tether

Tether Concerns And Why They Matter BACKGROUND Tether launched in 2014, and quickly became the world's largest stablecoin, with a current market value of almost $70 billion. In order to assure buyers that Tether is Legitimate, Tether claimed it had cash reserves equal in value to the stablecoins it issued. That means that 1 Tether Has 1 U.S Dollar backing it. The US government found that wasn’t at all true. During a period from 2016 to 2018, the CFTC found that Tether held 27.6% of the value of issued stablecoins in fiat currency reserves. The Commission filed and settled charges with Tether that the company made “untrue or misleading statements and omissions of material fact.” The company insisted it always had enough money in reserve, saying in response to the CFTC fine that “There is no finding that tether tokens were not fully backed at all times—simply that the reserves were not all in cash and all in a bank account titled in Tether’s name, at all times.” Tether has also invested some of its reserves in Chinese commercial paper. A document detailing the reserves of Tether Holdings Ltd reveals that Tether has given billions of dollars in short-term loans to large Chinese companies. Tether has also been offering billions of dollars in crypto-backed loans. Some of these loans have Bitcoin as collateral. However, Tether’s lawyers claim that these secured loans are low risk since the borrowers have put up bitcoin that’s way more worth than their borrowings. Just recently, Alex Mashinsky, CEO of Celsius Network, was the latest person to claim that Tether’s stablecoin tokens aren’t fully backed by dollar reserves. “ If you give them enough collateral, liquid collateral, bitcoin, ethereum and so on . . . they will mint tether against it,” Mashinsky told the Financial Times. He explained that new USDT is issued directly for the loan, and then destroyed after so it doesn’t permanently increase the amount of Tether in circulation. Should this occur as Mashinsky describes, it would be in contradiction of Tether’s own terms of service: “Tether will not issue Tether Tokens for consideration consisting of the Digital Tokens (for example, bitcoin); only money will be accepted upon issuance.” Short-seller Hindenburg just set a $1,000,000 ‘bounty’ for details on Tether’s reserves. SO WHY DOES THIS MATTER? In May, Tether published details of its reserves in a pie chart. The breakdown showed it had 75.9% in "cash and cash equivalents." However, looking at that in more detail, only a small proportion of the 75.9% is held in cash: * 65.4% is in commercial paper. That equates to almost half of Tether's total reserves. * 3.9% is in cash. That equates to 2.9% of its total reserves. Commercial paper is a type of short-term loan that's usually made to corporations. The trouble is that Tether hasn't released information about what types of loans it has made. We don't know who the borrowers are or what types of debt it is. Most importantly, we don't know how easy it would be for Tether to access that money. Bitcoin as well as Altcoins are often paired in USDT. Meaning it isn’t real U.S dollars that are being used to purchase cryptos but instead Tether Dollars. Sure you may have used your hard earned dollars to attain Tether dollars but that money goes to Tether, you in return receive tether dollars that are then used to buy crypto. USDT volume often ranges from 50% to 80%, which is higher than any other crypto on the market. Exchange data clearly shows USDT is mainly fueling Bitcoin’s price valuation, which is deeply concerning. Bitcoin mainly rises during times when Tether is seen injecting hundreds of millions into Bitcoin. And during the periods they stopped, we saw major market corrections. When Tether released their questionable pie chart showing the breakdown of their reserves, Bitcoin dropped by another 53% and lost over $520 billion in market cap. Which was also during a period in which tether stopped printing. SO WHY DOES THIS REALLY MATTER? It’s evident that Tether is the glue holding up the crypto markets. With its potential insolvency, we could see a crypto-liquidity crisis which will create extreme levels of panic and fear amongst investors. Since Tether only has 2.9% of its supply backed by actual cash that means that if enough investors decided to convert from Tether back into U.S dollars simultaneously, Tether simply wouldn’t have enough cash to go around. Meaning the value of Tether could actually go far below 1 USD. Nobody can be sure of what will happen in the future but this is just something to be aware of. I love crypto and believe in the technology. I am just not sold on the legitimacy of the current evaluations of top projects. Should Tether go down it would not mean the end of crypto. It would just be a catastrophic event and would go down as the largest case of fraud in history. Thank you for reading. I will attach all sources below. www.coindesk.com www.fool.com cryptowhale.medium.com www.ft.com blockworks.co qz.com www.coinspeaker.com
by Nutty_Trader
3
SELL USDT BEFORE It gets blacklisted everywhere!!!! NOW!If you're not a crook and have assets in Tether, Move them to ANY coin that's half decent. Bitcoin is the safest, Ether ETH is next. Heck SHIB is even a safer bet!!!!! LOL Seriously! This toxic cryptoscam is getting delisted in Canada. To be a legal, regulated crypto exchange in Canada, you can no longer trade this fake USD. That's a effectively a double fake USD with debasement! Check your crypto trading platform. Is USDT still there? If so, you'r coins are not in custody with a very safe custodian because this appears to be regulated at the World Level. Bitfinex and the crooks can safely stay in the Britsh Virgin Isles. No heat there... LOL
CRYPTOCAP:USDTShort
by UnknownUnicorn2413721
ETH - Ethereum Analogue: A Liquidity TrapI undertook ETH Mining in a Coinbase Wallet one week ago. This morning at 7:00AM EST this experiment in Mining Ended for good. A heavy degree of Skepticism was confirmed - Crypto is a Liquidity Trap. Permit me to explain. ______________________________________________________________ "Money" as we knew it, no longer exists. The very "Moneyness" of it has all but evaporated. Durability - lasting medium of exchange Stability - store of value Divisibility - fungibility to smaller units of exchange Transportability - easily moved to and from to complete exchange Noncounterfeitability - secure, non-reproducable I would counter with a simple rebuttal - The US Dollar as a currency has failed. This is recognized outside of the United States by many Nations. The privileges of Seniorage since Bretton Woods has failed repeatedly. President Nixon closing the Gold Exchange Window was simply the first betrayal in a series of many. As a Store of Value... the US Dollar has lost 99.6% of its Purchasing Power Parity since 1913. There is currently a "Coin Shortage" within the US. Looking to hoard quarters, head to the local Laundromat. Rock, Paper, Quarters... divisibility can be challenging. Substitution effects play an important role, pre 1982 pennies are now worth $0.0307 or 3+ times face Value. They are, after all, 95% Copper, a healthy arbitrage opportunity for those with time to collect millions of them, the return on our time is significant, were they to exist in circulation in quantity. They do not. Should you take up counterfeiting physical currency, you go to prison. Your Cental Bank and Government conduct it... it's Monetary and Fiscal Policy. ______________________________________________________________ Suggesting CryptoCurrency is "Money" - I find it entertaining at best. Through the BlockChain, it certainly has Divisibility and "Portability/Transportability". It checks 2 boxes, but just barely. My recent ETH Mining Adventure had many BRE.X / Ponzi telltale signs... I've closely followed Monetary History for most of my life, it has always fascinated me, beginning with Gold & Silver Coinage. ______________________________________________________________ Prior to jumping headfirst into the results of ETH Mining, my primary concern was the ETH/USDollare "Tether" ... These are somehow assumed to be Tied to the US Dollar... in theory they are... BUT - rumors have been circulating since the creation of the "Tether" it is a liquidity trap design to provide the appearance of US Dollar "Stability" @ Par via Tether. This, of course, assumes there is $1 on Deposit for every $1 USDTether. Bitfinex, the crypto exchange instrumental in the creation of the Tether, has been conspiring for years to drain the reserves from Tether's bank accounts. The SEC has been quietly pursuing Stablecoins since the beginning of 2021, since June the effort gained decided momentum. The results at present have been interesting - Bitfinex will pay a combined $42.5MM Fine for being caught dead to rights in attempting to do what many have suggested for years. $41MM of that coming from Tether and $1.5MM coming from Bitfinex. The "Conspiracists" ( A dirty word as there is Poosbiility and Probability) were correct, Bitfinex's Tether was not backed by the Full Faith and CREDIT of the US Dollar for all Debts Public and Private. The Stablecoins were found to be grossly underfunded against claim(s). Stablecoins are after all assumed to trade at Par, although they never do AFTER conversions to US Dollars due to... Exchange Fees. Counterfeiting abounds... but how? :) Come on... you already know the answer, If not - you may be in denial. The Madness of Crowds is probably worth a read if you are still shaking your head in disagreement, There are consequences to Choice, and although the masses seem to enjoy having those choices made for them... as long as there is a payout, apathy to responsibility and the ability to demand the opposing choices of others are less than desirable. Lovely. Risk-Free, NO, absolutely not. ______________________________________________________________ Let's cut the to "Mining Experience" which was dismal at best. $1000 on Deposit in a Coinbase Wallet Deposited $50 Mining Fee to select Cloud Miner $76 total ETH mined ETH feee for transfer to Coinbase, $72.32 ETH Tether exchange to BTC BTC SELL to USD USD transfer NET to Bank Account - $986.14 A Net Loss of $13.86 for one week of ETH Mining and I escaped at the Lows of the Network Fees. Had I exited at the highs my NET would have been $937.11. And let's not forget to include the $50 Mining Fee... the Net declines into a precipitous Negative ROI. A $986.14 on $1050 Capital Outlay while ETh went from ~3500 to 3900... ***If you read the disclaimer carefully, you will discover there are a number of issues whereby your Tether may become unavailable due to Network Outages... Yeah, naw... I'l pass. This will end badly one day.
COINBASE:ETHUSD
by HK_L61
14
BTC buying opportunityHello guys. In this video, I am going through the structure of BTC and my forecast for its short term move. I believe this one will be the last buying opportunity before the next leg up. Unless something huge and unexpected happens, such as china default, US debt default or a world war, I see bitcoin hit 165k in the next 3-5 months. I hope you will enjoy the video...if you do, and you learn something new, please do me a favour and FOLLOW ME, SHARE, LIKE AND COMMENT. Remember, nothing discussed in any video or post from my account has to be taken as financial advice. Always remember to do your own research. Educational purpose only.
BITSTAMP:BTCUSDLong
by CFcryptoTA
1
Evergrande and the Cryptocurrency Market Selloff ExplainedIn this post, I'll be providing an explanation on a theory regarding the potential connection between China's giant real estate developer, Evergrande, and Tether. If you aren't familiar with Evergrande and the crisis it's currently going through, make sure to check out my previous post below: Disclaimer: This is not investment advice. This is for educational and entertainment purposes only. I am not responsible for the profits or loss generated from your investments. Trade and invest at your own risk. Evergrande's Shadow Banking Funds - In my previous analysis, I mentioned the existence of Evergrande's $67B liability from shady sources. - People, including renowned investors like Michael Burry, are posing doubts as to whether this liability has connections with Tether, a company that offers stablecoins in the cryptocurrency market. About Tether - Tether offers $USDT, a stablecoin that is convertable for 1 USD. - Essentially, what it does is not so different from what banks used to do, and continue to do today. - During the gold standard, when you took $500 to the bank, they'd give you an ounce of gold. - Tether guarantees that they'll provide 1 USD per 1 USDT - But, some say that Tether is faced with a bank-run like situation, looking at its reserves. - According to their March 2021 Reserves update, commercial paper accounts for 65% of Tether's cash reserves. - For those of you who don't know, commercial paper, or CP, is a way to finance extremely short term loans at a very cheap rate. - Tether did not disclose whose CPs they were, in order to protect their partner's privacy. Tether's Commercial Paper - Back in July this year, Tether’s CTO and general counsel had an interview with CNBC, and made a few important points. - They said that they have about $30B in AA rated International Commercial Paper, and these were rated AA by S&P and Fitch. - The point that some people are making is that Tether’s commercial paper might actually be Evergrande’s commercial paper. - This may seem like a conspiracy theory, but there are certain points that line up. Reason #1 - First, Tether currently has $30B in commercial papers, and that’s an insane amount of money. - Reuters reported that Shengjing Bank, the bank affiliated with Evergrande, is under investigation for providing illegal loans up to $20B. - Considering that even a more renowned company like JP Morgan can’t write $20B loans, there is plausible reason to doubt that the capital may have come from Tether. - So taking into consideration the size of the loan, some say that it’s highly likely that the capital flowed into Chinese real estate companies. Reason #2 - Secondly, even after Bitcoin peaked in mid April, Tether continued to print more USDT. To be precise, they printed $15B between mid April and early June. - In case you don’t know what bitcoin has to do with this, there have been claims that Tether has been arbitrarily printing USDT. - This USDT would be used to manipulate the price of Bitcoin, and the overall cryptocurrency market in general. - While Tether has been printing money like crazy, and as soon as Evergrande CPs defaulted on June 7, they stopped printing USDT. - Now this is a chicken or egg question where we don’t know if Evergrande’s liquidity problem caused Tether’s collateral to impair, or whether Tether’s cutoff caused the liquidity issues at Evergrande, but something sure smells fishy. How the Market Structure Would Break - Tether claims that they don’t hold any Evergrande commercial papers, but we don’t know anything for sure yet. - If it turns out that Tether was lying, and we see a domino effect take place, it would look something like this: - Evergrande, along with other real estate developers in China, would go default. - Tether, who lent them money in the form of commercial paper, could also go default. - And with tether going default we would see the cryptocurrency market take a huge hit. Where is Bitcoin Headed? - So at this point, you may be wondering: where would Bitcoin be headed with this absolute mayhem of a situation? - While Bitcoin and the overall crypto market crashed, we did manage to close above $40.7k on the daily. - This would indicate that the overall uptrend remains intact, despite the awful news. Conclusion So many answers still remain unanswered. Where does Tether put its billions? Who issues $30B in AA International Commercial paper, willing to pay anything? Why did Tether stop printing money as soon as Evergrande’s liquidity died? As I've said in the previous post, the best thing we can do as investors is to prepare for all probable situations. In my personal opinion, the Chinese government seems willing to indirectly solve the issue by injecting capital via open market operations, so it's more likely that this situation will be settled at one point, as opposed to leading to the entire global financial market collapsing. If you like this educational post, please make sure to like, and follow for more quality content! If you have any questions or comments, feel free to comment below! :)
HKEX:3333
by Michael_Wang_Official
17
ETHUSDT_Daily: UPDATE ANALYSISEther is in a critical point! Both two pink movements are possible for it, Be cautious :) If we consider the July to Sep 2021 as a minor wave 1, building the 5th wave of Intermediate degree, it will be two possibilities : 1- The correction wave 2 is finished up to 38% of wave 1 movement. 2- The correction is still going on to 61.8% and we are in wave B of 2 in minor degree. If we go to the first idea Ether is building its third minor wave of 5th wave in intermediate degree, So we can reach the targets easily. Other wise Ether will continue the correction to 3,100 USDT or even 2,600 in the worst scenario. ********************************************************************************************************************************************************* Trading idea: Depending on your investment period, if you are a long term investor and entered Ether previously then keep it, and if the price fall down buy more! otherwise maybe you should weight for the traded volume at least to cross the avg vol or keep an eye on weekly candle close point Enjoy your trade ;)
by NK_Moalla
7
Venus (XVS) vs Tether (USDT) | Trading Tips & More!Ok... The last one is Venus (XVSUSDT). Notice I always draw a green arrow here on the chart. This arrow represents the potential bullish scenario but there is a catch. This is not to say that XVSUSDT will move right away up, but this can happen. This means that above the current price levels the potential remains up but I am never predicting time. Meaning, we can see this same pair consolidate sideways for weeks before moving up. It remains above the EMAs (EMA10/50/100, etc) and then jump. If at any time prices go below support (light blue square on the chart) prices can drop... The catch is that it can go sideways for months before the breakout shows up. Now, the potential is leading towards the bulls (green). This is what I try to show with these charts. Venus is bullish above "support". As long as it remains above these level, at any time, it can break up. I can also work on predicting the time but this is harder, the throw of a dice, too many variables... Nope. We keep it simple. We trade we patience. WE BUY AND WE HOLD. If we go below support we close at a loss. If we break up, we enjoy, collect the profits and rejoice. Always being extremely grateful. Thanks a lot for your support. Namaste.
Long
by AlanSantana
5
Qtum Chart Analysis W/ TargetsEver since the 14-Aug. high, QTUMUSDT has been consolidating... A higher high took place later on 15-Sept. yet the price range still remains within an accumulation zone. Why accumulation and not distribution? We have a bullish market overall. We are on a bullish wave. The strong bearish candle on 7-Sept. which closed above EMA50 and EMA100 results in a bullish signal. A higher high after 14-Aug. gives the bulls additional support. The RSI is above 50... This all means that QTUMUSDT remains strong. Prices can drop here, for sure, but we have more bullish than bearish signals and we are reading a chart afterall. You still need a plan/strategy to trade. This is not financial advice. Thank you for reading. Namaste.
Long
by AlanSantana
1
USDT DOMINANCE SPIKE: RELIEF RALLY SOON FOR ALTS/BTC?USDT Dominance measures USDT market cap against all other coins. While not as potent as BTCD or TOTAL2, it can be a helpful indicator to know what traders are doing, as many of them use USDT over fiat. Obviously, when BTC sells off, USDTD spikes. Based on a little TA, we might expect a relief rally for the market soon. USDT is basically at resistance, but it did put in a slightly higher high. Recent volume is decreasing, signaling a reduction in selling pressure. RSI is nearly at Overbought levels (which would be considered oversold for the rest of the market) Just remember - When you think BTC can't go any lower... it always can. Happy trades, CD
CRYPTOCAP:USDT.D
by cryptodonovan
1