Crypto Market Roiled by New Allegations Against Tether, Bitfinex

Re:Crypto Market Roiled by New Allegations Against Tether, B... by aedron on Friday April 26, 2019 @04:16AM (#19755627)

This article goes to great alarmist lengths, past the point of being deceiving. Just the very first line:

> One of the world’s most widely traded virtual currencies faces renewed doubts about its stability [...]

Tether is nothing in terms of crypto currency penetration. It does not even have a percent of daily trading. Then a few paragraphs down:

> [...] within an hour of the attorney general’s statement and Tether slid 1.4 percent.

1.4 per cent. Even big cap stocks fluctuate that much some days.

> At the time of the correspondence, Bitcoin was trading at around $6,500. It dropped 4.7 percent to $5,236.03 at 12:10 p.m. in Hong Kong on Friday.

So they mention a price from 8 months ago, and then mention yesterday's price, implying that it fell that much because of this event.

Garbage journalism.

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Re:Crypto Market Roiled by New Allegations Against Tether, B... by ccjnsn on Friday April 26, 2019 @04:36AM (#19755693)

For something pegged 1:1 with the US dollar a 1.4% decrease is quite unusual.

It's volume is 2nd only to Bitcoin per [1]coinmarketcap.

With your 3rd point about pricing changes, yeah correlation/causation, it's a theory that is plausible though.

1.coinmarketcap.com

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Re:Crypto Market Roiled by New Allegations Against Tether, B... by carrja99 on Friday April 26, 2019 @08:36AM (#19756773)

You would think, but not for tether. I've seen it sit comfortably at 98-99% and even once dip as low as 89%.

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Re:Crypto Market Roiled by New Allegations Against Tether, B... by GreaterFool on Friday April 26, 2019 @05:04AM (#19755798)

If the peg was actually backed by anything then yes, that'd be unusual.

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Re:Crypto Market Roiled by New Allegations Against Tether, B... by askmike on Friday April 26, 2019 @05:22AM (#19755858)

Not really no, it depends on how much liquidity of a certain type is worth compared to liquidity of another type. Given the volatility in crypto markets this tends to change drastically in different times.

Same as why lending rates for crypto & fiat can go from 0.0001% to 0.08% (per day for example) in a matter of hours based on certain sudden price action.

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Re:Crypto Market Roiled by New Allegations Against Tether, B... by tim333 on Friday April 26, 2019 @06:53AM (#19756190)

> One of the world’s most widely traded virtual currencies

Looking at coinmarket cap just now it's No 2 by 24hr trading volume. Bitcoin $18bn, Tether $16.5bn, Ethereum $8bn, all others less than 4.

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Re:Crypto Market Roiled by New Allegations Against Tether, B... by faxi on Friday April 26, 2019 @11:35AM (#19758593)

5236.03 is not 4.7% less than $6500.

If those were the prices before and after, the drop was 19.45%.

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Re:Crypto Market Roiled by New Allegations Against Tether, B... by arisAlexis on Friday April 26, 2019 @10:03AM (#19757569)

journalism in crypto space is indeed ridiculous

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