←back to thread

BitConnect Closes Exchange as States Warn of Unregulated Sales

(www.bloomberg.com)
389 points JumpCrisscross | 2 comments | 17 Jan 18 01:04 UTC | HN request time: 0.414s | source
Show context
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 #
Alex3917 ◴[17 Jan 18 04:51 UTC] No.16165555[source]▶
Tether just hit a new all time high of $1.07, making the return on investment significantly better than most VC funds.
replies(3): >>16165727 #>>16167127 #>>16168957 #
mcintyre1994 ◴[17 Jan 18 11:42 UTC] No.16167127[source]▶
Isn't the entire point of it to be pegged 1USDT === 1USD? Obviously it fails at that by being backed by nothing like enough USD, but what does it being worth $1.07 even mean? Also, where do you sell Tethers given Bitfinex won't exchange them for USD?
replies(3): >>16167473 #>>16167488 #>>16168784 #
1. benmmurphy ◴[17 Jan 18 15:43 UTC] No.16168784[source]▶
doesn't the fact that its trading at 1.07 mean that tether doesn't have easy access to USD or an easy way to exploit the arbitrage. tether as a company can take USD and print tethers. so they could take USD $100, print 100 tethers, exchange them for USD $107 and walk away with $7 profit. i don't think people would even be mad if they did this. this is exactly what they should be doing to preserve the peg.
replies(1): >>16171147 #
2. makomk ◴[17 Jan 18 19:50 UTC] No.16171147[source]▶
People have, in fact, been getting mad when it appears they may have been doing this because people are weird like that. (Though I don't think there's enough market depth for that particular Tether-related arbitrage to be profitable, unlike some of the other options.)