BitConnect Closes Exchange as States Warn of Unregulated Sales

One scam down at least, next the Tether printer and BitFinex boys. Clean up in aisle HKG please.

Tether has remained at about $1/coin for a long time. Isn't it liquid if you trade it for BTC then to fiat?

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.

The concept of tether is a good one.

I wish that a reputable company or YC startup would do exactly the same thing but in a very legitamate way.

It seems like they could make a good amount of money by charging withdrawal and transfer fees.