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BitConnect Closes Exchange as States Warn of Unregulated Sales

(www.bloomberg.com)
389 points JumpCrisscross | 1 comments | 17 Jan 18 01:04 UTC | HN request time: 0s | 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 #
bhouston ◴[17 Jan 18 02:56 UTC] No.16165107[source]▶
If $200M was printed today, then it likely doesn't exist. Hilarious that this is going on.

At some point the music has to stop.

replies(5): >>16165185 #>>16165620 #>>16165911 #>>16166589 #>>16166829 #
csomar ◴[17 Jan 18 10:18 UTC] No.16166829[source]▶
They don't really "print" a $200million. Finex explanation is that when a user requests USDT they issue new USDT from their USD reserves.
replies(2): >>16167153 #>>16168276 #
arethuza ◴[17 Jan 18 11:46 UTC] No.16167153[source]▶
You really believe they added $200million to their USD reserves to cover the USDT?

Edit: Where would they get that USD?

replies(2): >>16167484 #>>16170073 #
1. dudus ◴[17 Jan 18 17:53 UTC] No.16170073{3}[source]▶
They say it's their "institutional investors", they never release who these are (some people say it's Bitfinex themselves), they never release what bank they use or which country is the money deposited in.

It's rotten to the core... The consensus is that they either don't have that money at all (most likely scenario) or that if they do it's all dirty money and they are operating a money laundry scheme....