r/CryptoCurrency Uranium Dec 05 '21 Take My Energy 2 Bravo! 1 Giggle 1 Buff Doge 1 Helpful 42 All-Seeing Upvote 6 Dread 1 Carlos award 1 Wholesome 47 Gold 1 Ally 1 Burning Cash 1 Maximalist 1 Silver 49

Tether (USDT) created $1,500,000,000 Worth of USDT Out of Thin Air in the Last 24h: Nothing of it is backed by actual Cash Perspective

In the last 24 hours Tether, the creator of USDT, has minted $1,500,000,000 worth of USDT out of thin air.

Nowhere it is documented where the money which was just created comes from and where it actually went.

Before 2019 Tether claimed 100% of its reserves would be backed by actual cash

Suddenly in April of 2019 Tether claimed only 74% of Tether would be backed by "cash and cash equivalents"

A pie chart (yes, this is how they want to proof their reserves) released by Tether in 2021 revealed that only 2,9% would be backed by cash

How much of it is actually backed of the $1,500,000,000 they somehow created in less than 24 hours? You can probably guess

(source 1) (source 2) (source 3)

18.3k Upvotes

3.4k

u/w00tangel In it for the tech Dec 05 '21 Silver Take My Energy

Tether is the actual magic Internet money.

1.3k

u/TooFitFurious Platinum | 3 months old | QC: CC 232 Dec 05 '21 Silver

They are minting coins like countries print their money lol

1.2k

u/SweetJonesofCrypto Platinum | 4 months old | QC: CC 304 Dec 05 '21 All-Seeing Upvote 'MURICA

Well yeah, it's supposed to mimic the dollar so why not? I actually like the attention to detail there.

800

u/Sup3rPotatoNinja Bronze | QC: CC 17 | r/WSB 63 Dec 05 '21 Gold

But USD has a country behind it. Teather has....19 dudes on some island?

964

u/Gatherun Platinum | QC: CC 377 Dec 05 '21 Helpful Wholesome I'll Drink to That Sidevote

I trust both the same

514

u/matthewsmazes Bronze | QC: CC 16 | r/Politics 191 Dec 05 '21 Silver All-Seeing Upvote

Plot twist: same 19 dudes are behind the US fiat dollar

153

u/Sam443 Gold | QC: CC 23 | r/Privacy 25 Dec 05 '21

Yea isnt it like 19 dudes at the fed vs 19 dudes on an island? Who can print more

72

u/CraftyShark Dec 06 '21

Plot twist: the 19 dudes behind tether are on Jekyll Island...

105

u/PillowTalk420 Dec 06 '21 All-Seeing Upvote Maximalist

Just hyding out.

7

u/wangtrip Dec 06 '21

well done, awards cost money, so I followed you instead.

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u/MD_Yoro Tin | WSB 6 Dec 05 '21

USA can bomb everyone and not pay up, what are 19 dudes going to do?

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u/LordShinRee Tin | 1 month old | LRC 16 Dec 05 '21

Fruity, yet piquant.

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u/hicoBM Tin Dec 05 '21

That’s not bad USA approve this message…..

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u/Eeji_ Platinum | QC: DOGE 46, BNB 42, CC 551 | FOREX 16 | ExchSubs 42 Dec 05 '21

There's actually a Magic Internet Money coin on the top 100

85

u/Nhiyla Dec 05 '21

and MIM is actually great.

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u/WhackertheCracker Tin Dec 05 '21

He sold? Print 1,500,000,000 Tezer and pamp it

43

u/[deleted] Dec 05 '21

Funniest video ever

10

u/Crosseyed_Benny Gold | QC: CC 19 Dec 06 '21

Pomp eeet.. 🤔

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u/JacqueMorrison Bronze | QC: CC 24 | Superstonk 182 Dec 05 '21

Will the rug pull be streamed online to achieve max revenue?

164

u/YoloAlgo Tin | CC critic | LRC 26 Dec 05 '21

The revolution will not be televised

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u/McMillan_man Bronze Dec 05 '21 Silver Wholesome

they made a ton of usdt to buy bitcoin during the dip and back the tether up with bitcoin as an asset

2.7k

u/Ugandan_Karen Bronze | WSB 6 Dec 05 '21 All-Seeing Upvote

infinite money loop

1.5k

u/PhilipJ_Fry Platinum | QC: CC 50 | SHIB 14 | JusticeServed 10 Dec 05 '21

How fucked are we though?

3.0k

u/AstuteClubSandwich Tin | 2 months old Dec 05 '21 Silver Gold Wholesome All-Seeing Upvote Take My Energy

Yes

570

u/TheTrueBlueTJ Developer Dec 05 '21

That's the only right answer

281

u/TooFitFurious Platinum | 3 months old | QC: CC 232 Dec 05 '21 edited Dec 05 '21

While(true) {

Print(Fiat);

Mint(Tether);

}

133

u/Aegontarg07 Platinum | QC: CC 1089 Dec 05 '21

While(true) {

Mint(Fiat);

Print(House of Cards);

}

227

u/xixi_duro Tin Dec 05 '21

Hotel (trivago)

19

u/vicarious_simulation Tin Dec 05 '21

In 2014, Expedia became a pioneer in accepting cryptocurrencies as a means of payment but stopped supporting that option on June 10, 2018. BTC payments on Expedia went live again after Expedia has teamed up with Travala.com, a blockchain-based platform.

EXPEDIA OWNS TRAVAGO

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u/TooFitFurious Platinum | 3 months old | QC: CC 232 Dec 05 '21

Runtime Error: Out of storage!!

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u/02d5df8e7f Tin | r/Programming 18 Dec 05 '21

while (true) { HODL(shitcoins); } make(big_money);

right?

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u/sloth_graccus Platinum | QC: CC 228 | SatoshiStreetBets 16 Dec 05 '21

We're gonna need a bigger boat(ing accident)

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u/welp_here_i_am1 Dec 05 '21

I literally read the second link, clicked coin market cap and literally said “Holy fucking shit. How is this still a dollar?”

I support crypto, but this makes the community look bad. And I really hope crypto takes hold, I have no faith in the stock market.

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u/Paskee Platinum | QC: CC 67 Dec 05 '21

We are the bottom

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u/Aegontarg07 Platinum | QC: CC 1089 Dec 05 '21

And we also the TOP

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u/purpleefilthh Platinum | QC: DOGE 101 Dec 05 '21

Dont know shit about how fucked.

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u/MsVxxen Bronze | 3 months old Dec 05 '21

It is a game of musical chairs.....depends when that music stops! :)

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u/SauceMaster145 Platinum | 6 months old | QC: ETH 79 | TraderSubs 79 Dec 05 '21

sounds like a video game cheat code

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u/pmbuttsonly Platinum | QC: CC 1255 Dec 05 '21

Sounds a LOT like those money glitches in gta online 😅

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u/JeffersonsHat Platinum | QC: CC 468 | r/WSB 332 Dec 05 '21

I think Hindenberg is still offering $1,000,000 USD for concrete information on Tether's backing. If Tether was actually backed by more than thoughts and prayers this would be the easiest million ever.

175

u/exiledegyptian Tin | CC critic Dec 05 '21

except there are only 19 employees. if the company had even a single neuron they would give each employee 100 million to buy their loyalty.

120

u/sloth_graccus Platinum | QC: CC 228 | SatoshiStreetBets 16 Dec 05 '21

I'm guessing this is why there's only 19 employees

354

u/ambermage Platinum | QC: CC 188, ALGO 266 | Unpop.Opin. 73 Dec 05 '21

5 employees were minted in the last 24 hours.

94

u/Logical-Independent7 Tin Dec 05 '21

backed by people or people equivalent assets

6

u/mOjO_mOjO Tin | r/SysAdmin 12 Dec 06 '21

"Sufficient amounts of organic matter."

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u/33446shaba Tin | 2 months old Dec 05 '21

They can pay them in Tether. Basically allowing them to swap to USD. Its a slow rugpull. But faster than fiat.

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u/exiledegyptian Tin | CC critic Dec 05 '21

It would be my prefered way too...

tether -> multiple exchanges in countries without extradition treaties; split them up then work remote.

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u/Nozomilk Platinum | QC: CC 1349 | TraderSubs 11 Dec 05 '21 Wholesome

FEDs hate this one trick!

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u/AutomaticBit251 Platinum | QC: BNB 15, DOGE 39 | FOREX 11 | ExchSubs 15 Dec 05 '21

Every government is using this one simple trick

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u/EkariKeimei Gold | QC: BTC 50 Dec 05 '21

Because there can only be one

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u/Samvega_California Tin Dec 05 '21

This is what's happening. It's the biggest house of cards in history. Tether inflates bitcoin and then backs itself with said bitcoin. There's nothing really there. It's going to collapse sooner or later and take down all of crypto with it. After that, crypto will be highly regulated.

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u/ambermage Platinum | QC: CC 188, ALGO 266 | Unpop.Opin. 73 Dec 05 '21

So we will get a second chance to buy BTC for $1.

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u/QuizureII Buy High, Sell Higher Dec 05 '21

Literally printing money out of thin air lmao

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u/Better_Objective5650 Gold | QC: XMR 23 Dec 05 '21

USA should be thanking them for backing usd with bitcoin /joke?

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u/Guy_Incognito97 Gold | QC: CC 28 Dec 05 '21 Silver Wholesome

I don't trust tether. That's why I keep all my funds in dog tokens.

2.2k

u/k3eb22 Tin | BTC critic Dec 05 '21 edited Dec 06 '21 Silver Gold Platinum Helpful Wholesome All-Seeing Upvote Bravo! Starry Snek

The problem is that you and everyone else seemingly doesn't understand what the issue is here.

Everyone says "oK I jUsT wOnT hOlD TeThEr" and then acts like it isn't a massive fucking problem that can't hurt their investments.

All of that Tether is counterfeit money that is being used to buy OTHER CRYPTO CURRENCY.

That means that the price of nearly every coin in the crypto space is being driven up by fake dollars.

Due to the fake dollars purchasing the crypto, the prices you see for all your favorite coins are fake too. If a significant number of people were going to try to cash out, there would not be enough liquidity to in exchanges to do so. There would be essentially a bank run of epic proportions and the entire crypto space would plummet to almost nothing again.

EDIT

For further clarification so I don't need to keep responding.

Fake dollars are being printed and use to buy BTC.

You go look at the price of BTC see $48k or whatever the fuck it is right now BUT that price isn't "real". The price is being driven up by fake dollars. As is every other crypto. If people in the crypto space in general want to start converting to cash there will be a bank run.

Example scenario with simple numbers:

Person 1 "I will sell my Bitcoin for $46k."

Person 2 "that is too rich for me. I will only by for $43k."

Person 3 (thinks I have a ton of fake tether dollars that I just created illegally. I didn't pay for them with real money.) "I will buy it for $46k. Here is my tether"

Now imagine that happening a few billion times. The price goes up and up and up. People with real dollars get excited and also buy, but the new heights of the price are fake. Sure SOME PEOPLE can sell their Bitcoin on Coinbase for the listed price and cash out safely. BUT NOT EVEN CLOSE TO REMOTELY EVERYONE can do that.

The tether that people are being paid for their coins isnt backed. When they try to go cash out at an exchange they will be unable to do so. The exchange will essentially say when they go to make their Tether cash "hey Tether give me the cash to close these transactions." And the response will be "lol sorry there is no cash" market response.

The problem gets worse every time Tether prints.

Thinking "Well I don't have any tether so this doesn't affect me". Is 100000% wrong.

Also, Mods please take off my "BTC critic flair". I am not a critic of BTC or crypto. Whoever did that is a fucking idiot. I love the idea of crypto. I have bought my home with crypto. I just am also a person who is capable of rational thought and if this doesn't concern you at least a little bit, then you are just a zealot.

Edit 2

A few people have asked "Why is this happening?"

I think that Paulo (CTO on Tether) and Tether/ Bitfinex WANT it to be legitimate. However people are greedy and they have got carried away. They are acting like the FED. Every time the crypto prices stagnate, they print more to pump the price. They hope the pump will cause a frenzy of real money into the system at a rate higher than what they are printing in order to get them out of the hole.

It isn't working out for them. https://www.cftc.gov/PressRoom/PressReleases/8450-21

It tells me the goods aren't back.

If the goods aren't backed that is a huge existential problem to every crypto market.

The amount of then fine is meaningless

The questions are :"How much is backed?" and "At what point do we have a bank run?"

With every print a bank run gets closer.

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u/FriskyGrub Dec 05 '21 Helpful

The comment was probably satire, yeah, but to piggy back of this comment. Imagine you could create money out of thin air whenever you wanted. Now how much would you be willing to pay for your favourite dog token. $1, $10, $100? It doesn't matter to you because you can just make more fake money. But it also means the price isn't real any more.

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u/k3eb22 Tin | BTC critic Dec 05 '21

Exactly

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u/Thee_Cat_Butthole Tin Dec 05 '21 This

I believe it was satire

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u/Smatt2323 Bronze Dec 05 '21

Yeah like parodying old school "I don't trust the banks so I keep cash under my mattress"

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u/Guy_Incognito97 Gold | QC: CC 28 Dec 05 '21

I was being glib because I'm British but I understand the problem.

I try not to use Tether and would encourage other people to move away from it as well. A gradual shift away from it is probably the best outcome.

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u/nofriendseither Dec 06 '21

Yeah, crypto is known for people being reasonable and making gradual moves. /s

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u/gltovar Dec 05 '21

Doge is protected! 1 doge = 1 doge

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u/LiesAboutstuffAlot Tin | WSB 10 | GME 12 Dec 06 '21

Confirmation Bitmart was not hacked and actually faked the hack because they don’t have the cash on hand to cash people out.

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u/Etna Tin Dec 05 '21

Sure, but that is also true without Tether.

If market cap of a coin is $1B dollars, that is just based on last sale price, it doesn't mean there's $1B locked across account as collateral somewhere. If people start selling en masse, they will only gets fraction of the $1B. Regardless of Tether.

Tether is convenient to make trading pairs on the exchanges, but the value of other coins doesn't depend on it directly. If Tether becomes untethered then that is mainly an inconvenience for the exchanges, and will hurt trading.

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u/mark_able_jones_ Silver | QC: DOGE 104, ETH 18, CC 359 | Buttcoin 33 Dec 05 '21

It's half the market volume. Tether unpegs, and the market collapses as exchanges become insolvent.

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u/article10ECHR Tin Dec 05 '21

Half the market volume?

Jeez. Talk about exchanges putting all their eggs in one basket.

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u/lmaccaro Dec 06 '21

This should be relatively obvious.

Invent sh*tcoin.

“Mine” the first billion coins of sh*tcoin.

Promote sh*tcoin using paid promotion and viral ads.

Trade sh*tcoin for Bitcoin.

Cash out Bitcoin.

(They just don’t name the coin sh*tcoin. The name can be anything. The paid promotions are about “how powerful the network is” etc.)

Crypto demand (and market cap) is driven by sh*tcoin production.

5

u/crimeo Platinum | QC: BTC 81, CC 47 | Cdn.Investor 60 Dec 06 '21

Partially driven by hype. Also largely however driven by its inherent usefulness (immunity to inflation, smart contracts, covertness, etc)

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u/Wabi-Sabibitch Platinum | QC: CC 103 Dec 05 '21

What most people don't get is that this is not just a problem for Tether but the whole Crypto market.

1.4k

u/Dizzyeer Tin | 1 month old Dec 05 '21

This is alarming and could legitimately be a sign that the crypto market could be sabotaged.

1.1k

u/Lurkawayzzz Platinum | QC: CC 1343 | Superstonk 12 Dec 05 '21 All-Seeing Upvote

The Fed prints, and Tether mints.

319

u/TooFitFurious Platinum | 3 months old | QC: CC 232 Dec 05 '21

United States approves it!! Bullish on inflation

112

u/TheTrueBlueTJ Developer Dec 05 '21

Inflation is more bullish on you

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u/Skillet918 Dec 05 '21

Yeah but how many aircraft carriers does tether have?

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u/Aegontarg07 Platinum | QC: CC 1089 Dec 05 '21

Tether will have as much as they want, they’re experts of pulling things out of thin air lol

8

u/MsVxxen Bronze | 3 months old Dec 05 '21

Pitting a virtual air craft carrier against a real one?

One shell from the real one and Tether is Toast.

All 19 hands lost (in concept). :)

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u/JeffersonsHat Platinum | QC: CC 468 | r/WSB 332 Dec 05 '21

102

u/TheTrueBlueTJ Developer Dec 05 '21

Now we only need an insider leaking the not-so-fun stuff.

29

u/TooFitFurious Platinum | 3 months old | QC: CC 232 Dec 05 '21

I guess he will be millionaire!!

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u/FragileMango Dec 05 '21

what insider? one of the 28 employees of tether? according to linkedin xD

https://www.linkedin.com/company/tether/

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u/SoulUrgeDestiny Future Millionaire Dec 05 '21

I thought the American government was supposed to be making all the stable coins prove what they’re backed by this month?

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u/BlueChimp5 Gold | QC: CC 17 | r/WSB 18 Dec 05 '21

No apparently one senator sent a request

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u/Pma2kdota Platinum | QC: CC 516 Dec 05 '21

what is funniest to me is that they use TRX USDT , they don't even want to pay the ERC-20 gas fees on the transactions LMAO

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u/Dividedthought Dec 05 '21

If you think the market isn't already sabotaged by people with pockets waaaay deeper than either of us...

Well i got a tiger repellant rock that you may be interested in.

When the key to the kingdom is money, it's the ones with money who will find a way to take it, and the crypto kingdoms like bitcoin and ethereum are probably already bought and sold to the point where they could be made worthless if the right people decided to. Look at what's happening with GME and all that, open market manipulation and nothing happens.

Using a resource (money) to defeat someone who has way more of it at their own game is generally not the most successful plan for a reason. Especially when all the advantages you get for using it are also the same advantages the enemy has.

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u/SauceMaster145 Platinum | 6 months old | QC: ETH 79 | TraderSubs 79 Dec 05 '21

It just feels like a ticking time bomb

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u/DadofHome Silver | 6 months old | QC: CC 170 | LRC 32 | TraderSubs 13 Dec 05 '21

I think most of us get that, but seriously what can we do .. I don’t use it -avoid it- tell people about it- but I can’t stop them from going BRrrrrrrrrr

369

u/[deleted] Dec 05 '21 Helpful All-Seeing Upvote

[deleted]

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u/Zealousideal-Wave-69 Tin | CC critic | r/PennyStocks 13 Dec 05 '21

How about CEX’s stop listing USDT all together. They can do what they want

50

u/phrackage Tin Dec 05 '21

How about DEXes start

40

u/vancity- Dec 05 '21

How about anyone start

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u/Drwgeb Platinum | QC: CC 729 Dec 05 '21

I think for small people what can be done is education on why this is an issue, on what to use instead and just generally being careful about the market.

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u/Aegontarg07 Platinum | QC: CC 1089 Dec 05 '21

I use USDC, DAI and a bit of BUSD

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u/TheGiftOf_Jericho Platinum | QC: CC 807 Dec 05 '21

Definitely creates a lot of distrust in the community.

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u/danieltopo12 Terra - Ocean Dec 05 '21

UST Terra would like to disagree

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u/bosshax Tin | LRC 80 | Superstonk 860 Dec 05 '21 Silver Helpful Wholesome

The problem is really on the CEXs.

If you are P2P, wallet to wallet, you can't invent anything.

Take Metamask for example... You can FIAT fund that (buy ETH) and trade that ETH with a counterparty. No bullshit.

With a CEX though they can receive your FIAT deposit (thanks for the USD) and give you USDT (magic money). You can take that magic money and do all kinds of things within that CEX. You can, theoretically, create USDT, buy Bitcoin, sell Bitcoin, return USDT, and make a profit.

That is called synthetic leverage and it shouldn't exist in Crypto. The whole thesis behind Crypto/Bitcoin is there is limited supply. It is a scarce resource. But the CEX's are basically the new banks and they allow all this trading within their ecosystem which introduces synthetic leverage and dilution.

The price of Bitcoin CAN and like IS artificially inflated by USDT sitting on CEXs.

Stablecoins are the life blood of Crypto and there are some that have better transparency/auditing than others... I think USDC is more legit... But we absolutely need stablecoins.

Here's a sort of hint into how absolutley fucked things are on Binance (the largest exchange in the world).

The maximum daily deposit is $200,000 USD. The maximum daily withdrawal is $200,000 USD.

If you had, $10,000,000 USD in assets... It would take you 50 days to withdraw your money. In the event of some kind of systemic panic, you would be fucked.

You CAN transfer up to 60 bitcoin in/out per day (notional value of $3M. So the limitation on the FIAT is not some kind of KYC limitation.

The reason they have this limitation is because IF EVERYBODY started transferring out from USDT to USD they would have a bank run and be fucked - they are doing some kind of fractional reserve banking.

This is why I hold no coins in CEXs... If there is some kind of fraud revealed then everyone will try to withdraw USD and transfer their coins and you will not be able to. Binance is totally unregulated, incorporated off an East African island... We're totally due for a massive scandal and maybe that will be the catalyst for the next 80% drop.

Unfortunately there won't be any coin that will escape a USDT fallout, even other legit stables will get un-pegged.

34

u/dr14er Tin Dec 05 '21

That's why I'm a fan of Gemini. I'm in the process of moving mostly everything from Gemini to a ledger wallet, but I can appreciate at the very least that they don't take Tether and that they trade GUSD for $1 no matter what (for now anyways... hence my moving most things off the platform)

6

u/mrc_13 Tin Dec 05 '21

Is there a ridiculous fee you're paying everytime you transfer from the exchange to your ledger wallet?

9

u/dr14er Tin Dec 05 '21

10 free transfers (any amount) per calendar month. Then reasonable fees afterwards

6

u/mrc_13 Tin Dec 05 '21

Oh wow... I might need to switch to Gemini. Thanks for the info

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u/Manikhas Platinum | QC: CC 106 Dec 05 '21

Tether is the thing we hate most about fiat. I don't care if crypto takes its time to rise and we shouldn't have to use shady practises that will come and bite all of us in the ass.

496

u/RIMS_REAL_BIG Tin | CC critic | Buttcoin 81 | Politics 120 Dec 05 '21

Have you seen the chart of tether's market cap over the last few years. This whole bullrun was 90% created by tether.

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u/Manikhas Platinum | QC: CC 106 Dec 05 '21

I know, its insane but this will come to haunt us. I fear the bear market will be even worse than before

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u/Dyolekythos Dec 05 '21

This whole bullrun was 90% created by tether.

Could you explain why you think tether has a link with the bullrun?

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u/[deleted] Dec 05 '21 Silver Wholesome

[deleted]

324

u/Squirmin Dec 05 '21

This is the robinhood dude that used his like 1k to leverage, then used the leveraged assets to get more leverage, then went bankrupt in 30 seconds.

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u/Letitride37 Platinum | QC: CC 408 Dec 05 '21

Guh

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u/exiledegyptian Tin | CC critic Dec 05 '21 All-Seeing Upvote
  1. Print tether
  2. buy bitcoin causing the price to increase
  3. wait until fomo sets in and people start buying and price goes even higher.
  4. sell bitcoin on actual usd pair like on coinbase and extract usd to back the tethers you printed.

in the event, this is uncovered that meant all the price growth that happened since 2016 is fraud and the price will fall like thunder.

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u/ExSqueezeIt Buy high sell Low Dec 05 '21 Tree Hug

finally someone who gets it.

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u/Castle789 Bronze Dec 05 '21

1 of the 5 employees at Tether: We found this broken chair in the basement !

Tether: mhhh its probably worth 10.500.000 $ !!

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u/inevitable_username Platinum | QC: CC 380 Dec 05 '21 edited Dec 05 '21

Tether claimed their USDT is backed by "cash and cash equivalets..." equivalents like USDT?

311

u/primal_screame Bronze | QC: CC 18 Dec 05 '21

Cash equivalents like cocaine, weapons, and toilet paper.

125

u/LargeSackOfNuts BitchCoin Dec 05 '21

Like Chinese bonds which default

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u/Schapsouille Silver | QC: ETH 18, CC 132, BTC 46 | ADA 13 | Superstonk 19 Dec 05 '21

Debt, cash equivalents are debt.

Curious as to how much of this debt is composed of Evergrande's toxic assets.

90

u/primal_screame Bronze | QC: CC 18 Dec 05 '21

No kidding, this feels like a cash grab before the wheels fall off. People are getting more bold with their fuckery after seeing decades of people not going to jail for this kind of shit.

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u/Prob_Pooping Silver | QC: ETH 18, CC 60 | CryptoMoonShots 91 | TraderSubs 14 Dec 05 '21

Ok guys, here's what we do. I'll setup a bank account where everyone can send me cash and in return I'll send you tokens that represent that cash. I'll write up a pdf receipt to send to each person also, in case the irs gives you a hard time.

31

u/lozedas Bronze Dec 05 '21

Albert Einstein is that you

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u/dajohns1420 Platinum | QC: CC 43, Kucoin 41, BCH 17 | ExchSubs 41 Dec 05 '21

The SEC gas been rejecting spot ETFs the last few months and every time the site the reason as being because it's blatantly manipulated by stable coins.

Also, Cornell released a study a few weeks ago showing 70% of crypto volume is wash trading, that' some projects and NFTs volume is 99% wash traded. Everyone in crypto just wants to stick their head in the sand and active all these projects are naturally worth billions.

56

u/Due-Advisor6057 Dec 05 '21

Yeah.. the denial is real in the crypto world. I believe in block chain and the technology but I refuse to buy in currently due to the massive amounts of trick fuckery happening in the stable coin world.

The fallout of tether going tits up is going to be immense. However, once it happens (it needs to happen for crypto to be healthy), I’m most likely all in.

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u/mihnealazar Bronze | QC: CC 20 Dec 05 '21 Helpful

fuck tether

73

u/ihatenuts69 Tin | 2 months old | CC critic Dec 05 '21

fuck tether

48

u/GroundbreakingLack78 Platinum | QC: CC 1339 Dec 05 '21

fuck tether

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u/tahahussaini Platinum | 4 months old | QC: CC 151 Dec 05 '21

I don't know if anybody has said it yet butt fuck tether

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u/PhotonAttack Gold | QC: CC 37 | r/Android 31 Dec 05 '21 Silver Helpful Wholesome Starry

The minting is the first step. Minted tokens cannot be backed by anything, they are just there to be issued. Then it is issued in exchange for the dollar. When dollar is redeemed the said tokens are burned. This minting, issuing, burning happens all the time. Only the minting makes the news because idiots can't read.

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u/TheUwaisPatel Bronze | QC: CC 15 | NANO 127 Dec 05 '21

Scrolled too far to find this

35

u/FeynmansRazor Tin Dec 06 '21

Welcome to this sub. It's literal garbage.

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u/LieV2 Dec 05 '21

Oh so this actually means nothing lol. Thank you for the clarity.

If it was "1.5tn tether issued without backing" then I assume collapse before I could get to the exchanges. Right?

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u/g_squidman Platinum | QC: ETH 97 | Buttcoin 14 | TraderSubs 33 Dec 05 '21

The only intelligent comment. Out of more than 7000. And it only has 15 up votes. I knew I could find it, but it wasn't easy.

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u/LegendOfJeff Tin Dec 05 '21

This makes a lot of sense. But how do we know that they are receiving any assets in exchange when they issue Tether?

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u/immibis Bronze | r/WSB 25 Dec 05 '21

We don't

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u/gabsternc 1 - 2 years account age. 35 - 100 comment karma. Dec 06 '21

If this process is so goddamn transparent why is there no evidence? Yes we can all see the minting. Can you link here the issuing and burning logs? Am I missing something?

4

u/i_have_chosen_a_name Silver | QC: CC 166, BCH 714 | Buttcoin 53 Dec 06 '21

This minting, issuing, burning happens all the time.

The mints are on the blockchains we can see them happen.

What we don't see is the burns. Tether in their entire existence have not even burned 1 billion, but printed 74 billion.

14

u/KryptixTraveler Tin | 1 month old Dec 05 '21

Lmao, the above comments are so scary

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u/beklog Platinum | QC: CC 1459 | CelsiusNet. 20 Dec 05 '21

But this wont stop anyone from purchasing/using USDT

Part of the blame is for CEX that sometimes only allow USDT trading pairs on some coins

235

u/MasterReindeer Tin | ADA 11 Dec 05 '21

I wouldn’t hold anything in USDT for more than 5 minutes.

177

u/rePAN6517 Tin | CC critic Dec 05 '21

That's 5 minutes longer than my risk tolerance.

57

u/roberthonker Send me 1 moon, I will send 2 back Dec 05 '21

I wouldn’t touch Tether with my 10 inch dick

51

u/AlecW81 Bronze | QC: CC 20 | WSB 10 Dec 05 '21

but your 2inch dick is holding a surprisingly heavy bag?

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u/SaneLad Platinum | QC: BTC 173, CC 206 | r/WSB 255 Dec 05 '21

It stops me. Fuck USDT. I'm not touching this shit with a long pole.

3

u/LegacyAngel Bronze | ADA 7 | Politics 153 Dec 05 '21

We are all touching it indirectly unfortunately.

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u/guido_lois Platinum | QC: BNB 19 | ExchSubs 29 Dec 05 '21

Tether is a danger to crypto. The exchanges need to ween themselves off of its fantasy value.

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u/MinnesotaNice92 Minnesota weather go Brrrrr Dec 05 '21

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u/GroundbreakingLack78 Platinum | QC: CC 1339 Dec 05 '21

Tether be like.

88

u/EthanGibson2 Platinum | QC: CC 157 Dec 05 '21

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u/TooFitFurious Platinum | 3 months old | QC: CC 232 Dec 05 '21

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u/SweetJonesofCrypto Platinum | 4 months old | QC: CC 304 Dec 05 '21

Fun fact: Christine Lagarde looks exactly as evil on the inside as she looks on the outside.

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u/TooFitFurious Platinum | 3 months old | QC: CC 232 Dec 05 '21

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u/OperatorJo_ Platinum | QC: CC 80 Dec 05 '21

Looks like Tether really wants to become the digital dollar, they print the same as well!

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u/_grdz Tin Dec 05 '21

Tether: Countries need a printer for more money? Pathetic...

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u/LostMyPPMs Bronze | 3 months old Dec 05 '21

I thought this required a premium membership?

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u/ArtSchoolRejectedMe Platinum | QC: CC 60 | SysAdmin 32 Dec 05 '21

Apparently no

34

u/LostMyPPMs Bronze | 3 months old Dec 05 '21

Copy comment text for r/cryptocurrency will be like right click and save for NFTs.

Thanks for the advice Hitler.

10

u/ArtSchoolRejectedMe Platinum | QC: CC 60 | SysAdmin 32 Dec 05 '21

LOL. Nice

7

u/EthanGibson2 Platinum | QC: CC 157 Dec 05 '21

Lmaoooo

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u/Abiii90 Platinum | QC: CC 93 | CRO 20 | ExchSubs 20 Dec 05 '21

I am not ready for the bear market caused by USDT.

12

u/mercuchio23 Bronze Dec 05 '21

should've been around in 2018

18

u/Abiii90 Platinum | QC: CC 93 | CRO 20 | ExchSubs 20 Dec 05 '21

Unfortunately the damage is going to be bigger this time. That’s why I tell all my friends to always convert coins to USDC instead of USDT.

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u/Tatakae69 Platinum | QC: CC 865 Dec 05 '21

Flair checks out

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u/ManagementProof2272 Bronze | IOTA 6 Dec 05 '21

Regulators are about to come down hard on this kind of stablecoins.

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u/D_Trickster Tin | r/SHIBArmy 5 Dec 05 '21

That's an interesting point. Perhaps some type of regulation incoming and they tried to cash out as much Tether as possible before then.

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u/Sea_Mathematician_84 Dec 05 '21

Exactly. This is literally what they are looking to regulate. This is why we have threats of regulation on the crypto market; because these coins are acting as unbacked securities in the market and masquerading as asset-backed, which is dangerous.

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u/Eislemike ES Bitcoin Bonds will oversubscribe Dec 05 '21

I don’t understand how 100% of comments call tether a fraud and yet it’s still being used that much. Clearly this sub is in no way representational of the market.

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u/Jason_DeHoulo Tin Dec 05 '21 edited Dec 05 '21

I'll be completely honest, I've still been using tether because I day trade crypto and USDT is the only coin that has high liquidity in most of its trading pairs.

I called myself out on it last week and switched to BUSD. Not perfect, but better than tether.

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u/Physiocrat Dec 05 '21 Gold

BUSD is about as perfect as it gets. It only is branded by Binance but is actually run by Paxos and regulated by the state of NY. That means the funds that back it are audited and have to be almost entirely cash.

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u/Galveira Platinum | QC: CC 41, ETH 46 | TraderSubs 33 Dec 05 '21

Aren't USDC and GUSD also audited and regulated?

24

u/JuanBARco Bronze | QC: CC 18 | WSB 12 Dec 05 '21

To my knowledge yes.

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u/igoris1959 Tin Dec 06 '21

Reminds me of taxes. We pay taxes using money that was already taxed in our paychecks .

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u/frajeris70 Tin Dec 05 '21

YOU WERE THE CHOSEN ONE! It was said that you would destroy the FIAT, not join them, bring balance to the economy, not leave it in darkness.

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u/roberthonker Send me 1 moon, I will send 2 back Dec 05 '21

Darth Tethereus, Rise!

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u/CalistnX92 Platinum | QC: CC 102 Dec 05 '21

Let's go to the comment section to see what the EXPERTS think!

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u/teddy_swits Platinum | QC: CC 410, ETH 23 | TraderSubs 23 Dec 05 '21

Irresponsible and greedy. We are trying to create a better money system, and then these jokers come along and create a bubble

98

u/TheTrueBlueTJ Developer Dec 05 '21

The whole market relies way too much on Tether. Every coin's largest volume is always with Tether. I hope this doesn't come to bite us later.

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u/roberthonker Send me 1 moon, I will send 2 back Dec 05 '21

It’s definitely going to come to bite us later. But once that happens we will be better off once the market moves to something else.

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u/Roflcopter71 Bronze | NANO 44 | Politics 43 Dec 05 '21

Exactly. Tether is the last major FUD that needs to get dealt with one way or another at some point, just like how China banned mining. It hurt a bit once they ultimately did that but after that they could no longer threaten to do so. Arguably if Tether goes tits up the consequences will be far worse but at least it would eventually force people to use a better stable coin, just like how Chinese miners moved to other countries more accepting of Crypto. Short term pain for long term gain.

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u/Pipkin81 Gold | ADA 19 Dec 05 '21 Helpful

We are trying to create a better money system

Not me, I'm just trying to get rich.

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u/midwestck Dec 05 '21

The only honest one

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u/Cramer02 Silver | QC: CC 47 | LRC 40 Dec 05 '21

Same as 99% of the people here but they wont all admit it

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u/MildlySerious Gold | r/Programming 10 Dec 05 '21

If you can't mint Bitcoin out of thin air, you mint a shitcoin out of thin air and convince people to sell you Bitcoin for it in return.

I'm really more mad at myself for not doing it than I am at them for doing it.

The joke is going to be on exchanges and whoever else fell for it.

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u/Pinheaded_nightmare Silver | QC: CC 24 | WSB 12 | r/Politics 65 Dec 05 '21 Wholesome

Yeah, the tether crash is what I’m betting is gonna cause the start of this bear market. We shall see, it has to collapse……eventually.

33

u/Real_Happy_Potatoman Platinum | QC: CC 109 Dec 05 '21

Looks inevitable at this point. A bad joke, might hurt us for some time.

If nothing else regulators will have to step in. Plus this just gives them a reason to be more extra thorough not allowing this to happen again.

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u/majani Tin Dec 05 '21

How though? There's still no stablecoin regulation and I don't think you'll have too many people clamoring for it

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u/[deleted] Dec 05 '21 edited Dec 13 '21

[deleted]

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u/wists Platinum | QC: CC 395 Dec 05 '21

"They can't keep getting away with this!"

Wait, actually it seems they can

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u/FinishGloomy Can’t spell bullshit without bullish Dec 05 '21

Digital printer go brrr

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u/loulan Dec 05 '21 edited Dec 05 '21

I wonder how bad a USDT collapse would be for the crypto market as a whole.

That's the scary part in all this.

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u/exiledegyptian Tin | CC critic Dec 05 '21

Stable currencies are about 50-60% of the trading volume everyday. That volume would disappear overnight so 50-60% price crash justifiably right there then there will be the panic selling causing a nice 80-90% price crash and this is if it only tethers doing this and not the other stable coins too..

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u/BicycleOfLife Platinum | QC: CC 337 | Politics 25 Dec 05 '21

How else would they print it? If there wasn’t demand for it the price would crash. What incentive would they have to print it without collecting value for it? Therefore it’s backed. If People are flocking from bitcoin to tether, they have to print more or the stablecoin would suddenly rise in price…

God damn tether truthers are stupid…

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u/PrxdGF Tin | CC critic Dec 06 '21

So why is it tagged as misleading?

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u/PiickleRiickk Tin | 4 months old Dec 06 '21

Damn it, Tether is really like a currency that came out of Alice in Wonderland.

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u/Schlaufons Tin | 6 months old Dec 05 '21 edited Dec 05 '21

Guys, we should really not only take this seriously (more or less, given some of the „duh“ replies), but we should act.

  • Firstly, whenever it is feasible for you personally (say time-pressure, extra fees, inconvenience, whatever) simply do not use USDT, not even as a intermediate token when swapping some other coins on an exchange.
  • In addition, spread this notion in a serious, informative way.

We all are responsible. If we act accordingly, market mechanisms will sort it out. Problem there: only if we act accordingly. So goddamit, DO IT!

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u/BatTechCrazy Dec 05 '21

I’m not understanding crypto at all now . If it’s a new currency why does it need to backed by cash currency ? Isn’t the whole point to move away from cash ? What is bitcoin backed by ? I need a ELI5 . Sorry for the dumb question

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u/62725252725 Platinum | QC: CC 90 Dec 05 '21

Tether is a stablecoin that always equals one dollar. Bitcoin is a currency itself, it doesn’t need to be backed by anything.

But every tether has to be backed up by a dollar. A stablecoin does not fluctuate in price. They are used by countries with huge inflation rates, on exchanges for lower transactions fees or as back up cash.

To remain exactly one dollar, Tether has to have one dollar for every coin as backup. And apparently they don’t have one dollar for every tether. Which could end up being a huge problem.

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u/BodybuilderFun6847 Tin | CRO 5 Dec 05 '21 Wholesome

Evergrande

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u/SantiagoAndDunbar Dec 05 '21

Tethergrande

13

u/leopardoo Platinum | QC: CC 128 Dec 05 '21

Arianagrande

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u/Blueberry314E-2 Gold | QC: ETH 123 | TraderSubs 114 Dec 06 '21 edited Dec 06 '21

No one is going to see this but I am so tired of reading about Tether, I just have to say some stuff.

  1. Tether has recently had their reserves audited by a well known and respected global accounting firm, the document is here.
  2. Tether was recently investigated by the New York Attourney General about these claims. Tether was found guity of not disclosing a $400m redemption of USDT to cover a temporarly liquidity issue, but nothing even close to the grand conspiracy you are claiming. (source)
  3. It seems no one in crypto land has ever heard of fractional reserve banking. As of March 2020, banks in the US are no longer required to hold ANY cash reserves on transactional accounts (source). Why are we holding Tether to this unrealistic, and frankly, stupid standard?
  4. Can we please, please cut it out with this garbage arguement. It's getting tired.
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