Bitfinex and Tether required to end all trading activity with New Yorkers

Re:Bitfinex and Tether required to end all trading activity ... by jcfrei on Tuesday February 23, 2021 @09:10AM (#26237393)

The market doesn't care. Hasn't cared for years now, just look at the Kraken USDT/USD market which is freely tradable. Tethers are mostly backed by USD - no 100% but that's because some funds were seized due to regulatory scrutiny, not because they disappeared.

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Re:Bitfinex and Tether required to end all trading activity ... by vzcx on Tuesday February 23, 2021 @12:03PM (#26239684)

I am not sure why I should trust kraken, but even if I trusted them completely, this only proves tether has enough liquidity to maintain their peg, not that they are "mostly backed." That is to say, it only puts a relatively small bound on their reserve ratio.

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Re:Bitfinex and Tether required to end all trading activity ... by albntomat0 on Tuesday February 23, 2021 @09:15AM (#26237455)

I'm not convinced your argument works. Bubbles exist until they suddenly don't.

This isn't a strong argument that it's a bubble, but the burden of proof is solidly on the tether folks to show that they're 100% backed, not the other way around.

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Re:Bitfinex and Tether required to end all trading activity ... by jcfrei on Tuesday February 23, 2021 @10:01AM (#26238050)

I'm not arguing - I'm making a statement. It's evident from market prices that investors don't care. Whether the market should care is another discussion but the parent asked about the market's reaction.

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