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BitConnect Closes Exchange as States Warn of Unregulated Sales

(www.bloomberg.com)
389 points JumpCrisscross | 4 comments | 17 Jan 18 01:04 UTC | HN request time: 0.618s | source
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sitepodmatt ◴[17 Jan 18 01:53 UTC] No.16164805[source]▶
One scam down at least, next the Tether printer and BitFinex boys. Clean up in aisle HKG please.
replies(5): >>16164892 #>>16164948 #>>16165555 #>>16165611 #>>16172919 #
andirk ◴[17 Jan 18 02:12 UTC] No.16164892[source]▶
Tether has remained at about $1/coin for a long time. Isn't it liquid if you trade it for BTC then to fiat?
replies(2): >>16164995 #>>16165626 #
dudus ◴[17 Jan 18 02:32 UTC] No.16164995[source]▶
If you trade it for bitcoin someone is selling you that bitcoin for tether. That person will go ahead and trade that tether for some other coin.... rinse repeat, but in the end someone is holding that Tether, if exchanges stop accepting tether eventually your only option is to cash out to USD. USDT is basically being used as a trade coin, to avoid cashing out (maybe to avoid taxation) or to speculate on USD with the intent to eventually redeem for USD.

At some point someone will try to cash out on the tether. And that's when we'll find out if Bitfinex really has the USD reserves to back that as they say they have.

But it's getting harder and harder to believe that money really exists.

Tether keeps getting printed by the millions specially when bitcoin is on a downtrend (just today 200M was printed). For some reason I doubt someone wrote them a check for 200M USD today.

Also Bitfinex never completed or released audits they promised.

The more you dig the more it looks like Bitfinex is printing fake money to pump cryptocoins.

replies(3): >>16165107 #>>16166076 #>>16166886 #
1. t3chn0SchO0lbus ◴[17 Jan 18 07:10 UTC] No.16166076[source]▶
I keep trying to wrap my head around the economics of this and maybe give Tether the benefit of doubt. I think the most damning technical detail is that there is no client-side wallet. We can't trade Tether amongst ourselves or engage in any trades that Tether doesn't have at least indirect control of.
replies(3): >>16166573 #>>16167496 #>>16168707 #
2. taberiand ◴[17 Jan 18 09:14 UTC] No.16166573[source]▶
Tether is a scam, 100%. It's fake money materialized out of thin air to pump Bitcoin.
3. trophycase ◴[17 Jan 18 12:56 UTC] No.16167496[source]▶
Yes you can. Tether is an asset on the Omni protocol and is expanding to ERC20
4. ufo ◴[17 Jan 18 15:34 UTC] No.16168707[source]▶
The most damning thing for me is that none of the many exchanges trading tethers allow you to trade them for US dollars. The only way to cash out of tether now is to buy cryptocoins and transfer them to a non-tether exchange.