Crypto Market Roiled by New Allegations Against Tether, Bitfinex

Re:Crypto Market Roiled by New Allegations Against Tether, B... by geofft on Thursday April 25, 2019 @11:14PM (#19754540)

I don't understand cryptocurrency markets at all, but, could there be something where the only people participating in the USDT market are those who are at least somewhat confident that USDT is what it claims to be and therefore are pricing it at $1?

What do you get out of participating in the market if you expect Tether to be fraudulent? You'd personally price it at zero, then, right? Can you profitably short it, or does everything just break down if you're right?

That is, if you hold USDT and want to sell it for cheap, who is going to buy it for cheap-but-nonzero?

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Re:Crypto Market Roiled by New Allegations Against Tether, B... by panarky on Friday April 26, 2019 @12:51AM (#19754942)

> if you hold USDT and want to sell it for cheap, who is going to buy it for cheap-but-nonzero?

The market price for one Tether is currently $0.9984 because traders are buying at that price.

So if anyone holds Tethers and believes there's greater than 1% probability that it goes to zero, the rational trade is to sell.

The fact that the price holds at parity tells me that Tether is not an obvious fraud.

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Re:Crypto Market Roiled by New Allegations Against Tether, B... by gzu on Friday April 26, 2019 @03:52AM (#19755539)

There is complacency among the exchanges though. You really believe all that volume and price action is legitimate? Exchanges want tether to be worth what they say it’s worth, 1 USD. The alternative is a massive crash in tether and therefore bitcoin price therefore altcoins price therefore profit (trading fees) for exchanges. The scam can go on much longer than you/anyone can imagine.

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