Log In

Your email is not your username

Register

If you were a member of the old Bodybuilding.com forums and would like to reuse your previous username, you can request it below. We use your email only for registration and do not store it. For more information, please see our Privacy Policy.

Confirm your email

A registration code was sent to your email. Enter it here.

Welcome

You have successfully setup your account.

Sign in

Quick Navigation Bottom Misc
Forum » Tether (USDT) Legit or Not? (crypto)
  1. Results 1 to 29 of 29
  2. Page 1 of 1

Thread: Tether (USDT) Legit or Not? (crypto)

post 1631989013 02-21-2021, 03:36 PM
-
#1
  1. triception
  2. Premium
  1. triception
  2. Premium
  3. Join Date: Aug 2011
  4. Posts: 3,806
  5. Rep Power: 20368

Tether (USDT) Legit or Not? (crypto)

I've been catching back up on what's going on in the world of crypto recently due to the massive bull run going on and came across claims that one of the main 'stable coins' is being investigated by the NYAG.

A stable coin is a cryptocurrency that has a value pegged to a 'normal' currency, so in this case 1 USDT = 1 USD. There are many out there, but currently there is massive volume going through one called Tether or USDT. Tether has never been audited and there are concerns that it isn't actually fully backed by USD, whereas allegedly USDC (another stable coin) has regular audits. Supposedly unregulated printing of Tether may be artificially inflating the value of Bitcoin and it could all come tumbling down in an ugly fashion if enough people want to sell at the same time.
Green Tea Crew

Meditation Crew

LaCroix Crew
post 1631989073 02-21-2021, 03:37 PM
-
#2
  1. triception
  2. Premium
  1. triception
  2. Premium
  3. Join Date: Aug 2011
  4. Posts: 3,806
  5. Rep Power: 20368
Here are some links giving an overview:

https://crypto-anonymous-2021.medium...e-f8dcf78a64d3

https://amycastor.com/2021/02/14/new...igacx-website/

What do the cryptobrahs here think about Tether? FUD? Or an actual risk to the value of Bitcoin and cryptocurrency as a whole? I'm particularly interested in hearing viewpoints on why Tether either isn't a big deal or if they are actually backed, as I've now read many convincing pieces that there's a big issue.

It seems like the biggest defense I can find is people saying that it doesn't matter if Tether fails because they aren't big enough to effect the overall market. I'm not certain this is true as it's based on the total value of all Tether circulating and the market cap of Bitcoin which seems to be lead by a misunderstanding of what the market cap of Bitcoin is (current price times total # of bitcoins in circulation, NOT the total amount of USD floating around in the Bitcoin ecosystem).

It's near impossible to find reliable info when everyone is so euphoric about the gains happening right now

TLDR:

USDT may not be backed by actual US dollars, may get shut down and tank crypto markets across the board

(posted as two posts because the forum was giving me an access denied error when I tried posting as a single OP)
Green Tea Crew

Meditation Crew

LaCroix Crew
post 1631989203 02-21-2021, 03:38 PM
-
#3
  1. Legendsneverdie
  2. Registered User
  1. Legendsneverdie
  2. Registered User
  3. Join Date: Aug 2007
  4. Age: 40
  5. Posts: 13,471
  6. Rep Power: 97119
not going to get rich off of USDT!!

its great to use for an exchange in situations where you need to GTFO fast during a dump on an alt.

i wouldnt be suprised if usdt wasnt backed.

The usd isnt back itself. what a chit show.

Boyos dont put more in this game than you can afford.
IF YOU DONT SQUAT, YOU AINT SQUAT
post 1631997933 02-21-2021, 05:33 PM
-
#4
  1. triception
  2. Premium
  1. triception
  2. Premium
  3. Join Date: Aug 2011
  4. Posts: 3,806
  5. Rep Power: 20368
Originally Posted By Legendsneverdie⏩
not going to get rich off of USDT!!

its great to use for an exchange in situations where you need to GTFO fast during a dump on an alt.

i wouldnt be suprised if usdt wasnt backed.

The usd isnt back itself. what a chit show.

Boyos dont put more in this game than you can afford.
I get that stablecoins are a good place to dump coins when the volatility gets going but as far as the initial goals/promises of blockchain tech goes I don't see how they make much sense. Haven't done much reading on their history though.

Here's more on Tether:

https://www.nasdaq.com/articles/a-su...2021-02-19?amp
Green Tea Crew

Meditation Crew

LaCroix Crew
post 1632038623 02-22-2021, 07:57 AM
-
#5
  1. triception
  2. Premium
  1. triception
  2. Premium
  3. Join Date: Aug 2011
  4. Posts: 3,806
  5. Rep Power: 20368
one bump in case the Monday brahs have any insight
Green Tea Crew

Meditation Crew

LaCroix Crew
post 1632042903 02-22-2021, 08:53 AM
-
#6
  1. niospecv
  2. I mean yeah...
  1. niospecv
  2. I mean yeah...
  3. Join Date: Mar 2006
  4. Posts: 38,152
  5. Rep Power: 214442
no one cares about USDT
**Texas Crew**
**Ultra MAGA Crew**
**Pure Blood Crew**
**Dallas Cowboys Fan Crew**
post 1632054213 02-22-2021, 11:17 AM
-
#7
  1. triception
  2. Premium
  1. triception
  2. Premium
  3. Join Date: Aug 2011
  4. Posts: 3,806
  5. Rep Power: 20368
Originally Posted By niospecv⏩
no one cares about USDT
Guess not, which will make the Tether implosion even more of a bombshell if it turns out to be true.

Here's JP Morgan's chart showing how more and more Bitcoin trading is using USDT vs. USD:



Gonna be nasty if it turns out there's only a fraction of USD that they claim to have in reserves
Green Tea Crew

Meditation Crew

LaCroix Crew
post 1632061053 02-22-2021, 12:42 PM
-
#8
  1. jittinfl
  2. Registered User
  1. jittinfl
  2. Registered User
  3. Join Date: Feb 2021
  4. Age: 56
  5. Posts: 197
  6. Rep Power: 557
its backed by math



lolol
post 1632098663 02-22-2021, 08:27 PM
-
#9
  1. triception
  2. Premium
  1. triception
  2. Premium
  3. Join Date: Aug 2011
  4. Posts: 3,806
  5. Rep Power: 20368
Originally Posted By jittinfl⏩
its backed by math



lolol
Green Tea Crew

Meditation Crew

LaCroix Crew
post 1632099013 02-22-2021, 08:33 PM
-
#10
  1. JamesA1990
  2. Ruslting Jimmies
  1. JamesA1990
  2. Ruslting Jimmies
  3. Join Date: Jul 2011
  4. Location: Australia
  5. Posts: 20,302
  6. Rep Power: 273051
Bit a smooth brain question, but whats the downside of converting your savings into USDT, then putting it in a celsius wallet and earning 14.99% interest?

Seems to good to be true?
Twinkcel fitness log
post 1632108553 02-22-2021, 10:27 PM
-
#11
  1. triception
  2. Premium
  1. triception
  2. Premium
  3. Join Date: Aug 2011
  4. Posts: 3,806
  5. Rep Power: 20368
Originally Posted By JamesA1990⏩
Bit a smooth brain question, but whats the downside of converting your savings into USDT, then putting it in a celsius wallet and earning 14.99% interest?

Seems to good to be true?
tbh I haven't read much about those sort of defi setups but they give me scam vibes. there are likely legitimate ones but I bet there will be quite a few that pull something to allow them to run off with people's coins

especially wouldn't touch one that required USDT though
Green Tea Crew

Meditation Crew

LaCroix Crew
post 1632108733 02-22-2021, 10:29 PM
-
#12
  1. The Prime Nip
  2. Prime Nip PharmD
  1. The Prime Nip
  2. Prime Nip PharmD
  3. Join Date: Aug 2007
  4. Posts: 9,019
  5. Rep Power: 31132
They were supposed to send in evidence that their stuff is backed by real stuff on the 20th.

Looks like it didn't happen and now the market is tanking.
*Fulfilling My Destiny Crew*
*Kaizen Crew*
*Audiobook Crew*
*Alexander The Great Crew*
*Patrice O'Neal Crew*
post 1632108913 02-22-2021, 10:32 PM
-
#13
  1. bibimbape
  2. Registered User
  1. bibimbape
  2. Registered User
  3. Join Date: Sep 2018
  4. Age: 56
  5. Posts: 369
  6. Rep Power: 668
Been following tether since 2017. Probability that it is always pegged 1:1 with USD is slim.

Keep in mind that fraud can take a long time to unravel. The Madoff investment scandal took almost 20 years to collapse since the first accusation.
post 1632139723 02-23-2021, 10:07 AM
-
#14
  1. triception
  2. Premium
  1. triception
  2. Premium
  3. Join Date: Aug 2011
  4. Posts: 3,806
  5. Rep Power: 20368
Originally Posted By The
They were supposed to send in evidence that their stuff is backed by real stuff on the 20th.

Looks like it didn't happen and now the market is tanking.
Looks like they reached a settlement today, Tether pas 18.5 million in fees and has agreed to start providing quarterly reports to show that they have full USD backing, along with separation between client/business accounts. Some highlights:

The OAG’s investigation found that, starting no later than mid-2017, Tether had no access to banking, anywhere in the world, and so for periods of time held no reserves to back tethers in circulation at the rate of one dollar for every tether, contrary to its representations. In the face of persistent questions about whether the company actually held sufficient funds, Tether published a self-proclaimed ‘verification’ of its cash reserves, in 2017, that it characterized as “a good faith effort on our behalf to provide an interim analysis of our cash position.” In reality, however, the cash ostensibly backing tethers had only been placed in Tether’s account as of the very morning of the company’s ‘verification.’

On November 1, 2018, Tether publicized another self-proclaimed ‘verification’ of its cash reserve; this time at Deltec Bank & Trust Ltd. of the Bahamas. The announcement linked to a letter dated November 1, 2018, which stated that tethers were fully backed by cash, at one dollar for every one tether. However, the very next day, on November 2, 2018, Tether began to transfer funds out of its account, ultimately moving hundreds of millions of dollars from Tether’s bank accounts to Bitfinex’s accounts. And so, as of November 2, 2018 — one day after their latest ‘verification’ — tethers were again no longer backed one-to-one by U.S. dollars in a Tether bank account.
Because Tether did not have a significant bank relationship in its name from at least March2017 until September 15, 2017, it could not directly process any fiat deposits for purchases of Tethers by customers on either the Tether website or via the Bitfinex trading platform. At the same time, neither the Tether website or the Bitfinex trading platform allowed for the direct purchase or exchange of tethers in exchange for any other virtual currency, including the two most popular virtual currencies, bitcoin and ether.
Tether’s misrepresentation would continue until late February 2019, at which time Tether updated its website to note that “[e]very tether is always 100% backed by our reserves,which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, ‘reserves’).”Tether did not announce that it had changed its disclosure, and indeed there were no media reports about the change until several weeks later on March 14, 2019.
https://ag.ny.gov/press-release/2021...finexs-illegal

https://ag.ny.gov/sites/default/file...oag_signed.pdf

Overall seems like the can's been kicked down the road again until the first quarterly report at least, stay safe out there bitcoin brahs
Green Tea Crew

Meditation Crew

LaCroix Crew
post 1632140133 02-23-2021, 10:11 AM
-
#15
  1. PimpMasterC
  2. Banned
  1. PimpMasterC
  2. Banned
  3. Join Date: Apr 2013
  4. Location: Norway
  5. Age: 31
  6. Posts: 6,984
  7. Rep Power: 0
The probability of them doing shady stuff is pretty high. Tether, bitfinex and tether´s bank, Deltec is all owned by the same group of people.
They have been claims on a lot of different things against them, such as anti competition stuff and such, which there easily could be made a case for. This Tether thing is not over yet. Of course Tether acts like everything is good, but it´s really not.

Tether sent millions of pages of paper to NY AG. Isn´t that a little much? Maybe not, but it sounds like a lot lol
There will be stricter regulations on stable coins that are coming, we will see how Tether handles that.
post 1632141113 02-23-2021, 10:23 AM
-
#16
  1. Barteh
  2. Registered User
  1. Barteh
  2. Registered User
  3. Join Date: Jan 2012
  4. Location: -, -, Netherlands
  5. Age: 36
  6. Posts: 20,781
  7. Rep Power: 125767
I've owned dozens of coins over the years and never once in my life have I touched USDT. I remember rumours all the way back in 2017 that they weren't backed already and as far as I'm aware they've never actually passed a real audit.
post 1632141573 02-23-2021, 10:29 AM
-
#17
  1. THATSfunnyOP
  2. Penthouse resident miscer
  1. THATSfunnyOP
  2. Penthouse resident miscer
  3. Join Date: May 2013
  4. Posts: 3,864
  5. Rep Power: 11815
I heard a portion of Tether's assets is backed by bitcoin. Jfc, what a scam lmao.
King MANLET the 3rd
post 1632141763 02-23-2021, 10:33 AM
-
#18
  1. THATSfunnyOP
  2. Penthouse resident miscer
  1. THATSfunnyOP
  2. Penthouse resident miscer
  3. Join Date: May 2013
  4. Posts: 3,864
  5. Rep Power: 11815
Originally Posted By Barteh⏩
I've owned dozens of coins over the years and never once in my life have I touched USDT. I remember rumours all the way back in 2017 that they weren't backed already and as far as I'm aware they've never actually passed a real audit.
This is true. And likewise... except for the past weeks i've been starting to hedge in USDT... :/ not proud of it... but eh
King MANLET the 3rd
post 1632142513 02-23-2021, 10:44 AM
-
#19
  1. Barteh
  2. Registered User
  1. Barteh
  2. Registered User
  3. Join Date: Jan 2012
  4. Location: -, -, Netherlands
  5. Age: 36
  6. Posts: 20,781
  7. Rep Power: 125767
Originally Posted By THATSfunnyOP⏩
This is true. And likewise... except for the past weeks i've been starting to hedge in USDT... :/ not proud of it... but eh
I can't help but feel there's shady chit going on with tether but short term you're most likely safe.
post 1632169753 02-23-2021, 03:35 PM
-
#20
  1. triception
  2. Premium
  1. triception
  2. Premium
  3. Join Date: Aug 2011
  4. Posts: 3,806
  5. Rep Power: 20368
Originally Posted By PimpMasterC⏩
The probability of them doing shady stuff is pretty high. Tether, bitfinex and tether´s bank, Deltec is all owned by the same group of people.
They have been claims on a lot of different things against them, such as anti competition stuff and such, which there easily could be made a case for. This Tether thing is not over yet. Of course Tether acts like everything is good, but it´s really not.

Tether sent millions of pages of paper to NY AG. Isn´t that a little much? Maybe not, but it sounds like a lot lol
There will be stricter regulations on stable coins that are coming, we will see how Tether handles that.
I could turn out to be wrong but I feel like Tether is in over their head and are riding things out until a bigger fish comes after them (SEC/DoJ etc), then they will likely take profits where they can and disappear from the face of the earth.
Originally Posted By Barteh⏩
I've owned dozens of coins over the years and never once in my life have I touched USDT. I remember rumours all the way back in 2017 that they weren't backed already and as far as I'm aware they've never actually passed a real audit.
I was into crypto back in 2016, then settled into a hodl waiting for things to really explode. I didn't even learn about stable coins until this year and I don't really see their purpose with regards to the original aim of the crypto community (anonymity/freedom from centralized finance). Seems like it's just another tool to help the crypto day traders
Green Tea Crew

Meditation Crew

LaCroix Crew
post 1632184713 02-23-2021, 06:38 PM
-
#21
  1. Barteh
  2. Registered User
  1. Barteh
  2. Registered User
  3. Join Date: Jan 2012
  4. Location: -, -, Netherlands
  5. Age: 36
  6. Posts: 20,781
  7. Rep Power: 125767
Originally Posted By triception⏩
I could turn out to be wrong but I feel like Tether is in over their head and are riding things out until a bigger fish comes after them (SEC/DoJ etc), then they will likely take profits where they can and disappear from the face of the earth.



I was into crypto back in 2016, then settled into a hodl waiting for things to really explode. I didn't even learn about stable coins until this year and I don't really see their purpose with regards to the original aim of the crypto community (anonymity/freedom from centralized finance). Seems like it's just another tool to help the crypto day traders
Yeah I don't see any purpose of even utilizing stable coins unless you're an active day trader. If you're just holding chit like BTC/ETH you just sell it on a good exchange for actual money and get out. If holding is your main strategy you shouldn't even be checking your wallet multiple times a day. I know so many people who just hold and still regularly check their wallets. Brb you're a few K in the green and aren't doing chit anyway, you're just wasting your time.
post 1632291363 02-24-2021, 10:51 PM
-
#22
  1. triception
  2. Premium
  1. triception
  2. Premium
  3. Join Date: Aug 2011
  4. Posts: 3,806
  5. Rep Power: 20368
Originally Posted By Barteh⏩
Yeah I don't see any purpose of even utilizing stable coins unless you're an active day trader. If you're just holding chit like BTC/ETH you just sell it on a good exchange for actual money and get out. If holding is your main strategy you shouldn't even be checking your wallet multiple times a day. I know so many people who just hold and still regularly check their wallets. Brb you're a few K in the green and aren't doing chit anyway, you're just wasting your time.
Ironically I've been checking the prices 1000x more than I was before I sold, mostly just trying to figure out why tf the price is shooting so high



bruh
Green Tea Crew

Meditation Crew

LaCroix Crew
post 1632292683 02-24-2021, 11:19 PM
-
#23
  1. zyzzliftswjesus
  2. Registered User
  1. zyzzliftswjesus
  2. Registered User
  3. Join Date: Nov 2019
  4. Age: 56
  5. Posts: 1,871
  6. Rep Power: 6763
Do you guys think I should invest in tether? Think it's gonna moon. Huge mcap but hasn't gone up in ages surely due
post 1632292893 02-24-2021, 11:23 PM
-
#24
  1. iloveus
  2. snailsrus
  1. iloveus
  2. snailsrus
  3. Join Date: Sep 2014
  4. Posts: 33,694
  5. Rep Power: 105430
What is crypto?
Financial Freedom/Passive Income Crew
Entrepreneur Crew
MMA Crew
Cinematographer Crew
Photographer Crew
Ski/Snowboard Crew
Guns Crew
post 1632294543 02-24-2021, 11:59 PM
-
#25
  1. Sinan09400
  2. Registered User
  1. Sinan09400
  2. Registered User
  3. Join Date: Dec 2012
  4. Location: Türkiye, Turkey
  5. Posts: 23,647
  6. Rep Power: 73617
legit brah.

I suggest selling your house& car and taking loans from banks and loan sharks and invest everything on it.
post 1632294743 02-25-2021, 12:06 AM
-
#26
  1. beegeener
  2. Gold Account
  1. beegeener
  2. Gold Account
  3. Join Date: Apr 2006
  4. Location: Victoria, Australia
  5. Posts: 3,292
  6. Rep Power: 12324
All they had to do is send a bank statement with their $34,913,912,972 to the feds, but they can't because they don't have the cash.

Every 90 days they now have to submit documents showing everything is legit and backed up. So at best, theres another 90 days this scam can continue.

Anyone who has half a brain is exiting crypto now

And before you say the Tether market cap is tiny and wont effect anything, someone just sold $2M worth of BTC and it took about $130B worth off the bitcoin market cap. Also Tether does TRILLIONS of volume a month. Without Tether the whole space comes tumbling down
post 1632295273 02-25-2021, 12:23 AM
-
#27
  1. beegeener
  2. Gold Account
  1. beegeener
  2. Gold Account
  3. Join Date: Apr 2006
  4. Location: Victoria, Australia
  5. Posts: 3,292
  6. Rep Power: 12324
You can read the settlement here:
https://ag.ny.gov/sites/default/file...oag_signed.pdf
post 1632295783 02-25-2021, 12:52 AM
-
#28
  1. moosik85
  2. Registered User
  1. moosik85
  2. Registered User
  3. Join Date: Nov 2011
  4. Posts: 14,890
  5. Rep Power: 81638
Tether is a massive scam and completely useless.

Let’s create a fake crypto that indexes fake money.... brilliant
Plant the trees in whose shade your grandchildren will play
post 1633201713 03-07-2021, 07:34 PM
-
#29
  1. triception
  2. Premium
  1. triception
  2. Premium
  3. Join Date: Aug 2011
  4. Posts: 3,806
  5. Rep Power: 20368
Crypto party continues, looks like nothing big is going to happen on the Tether front for now, they've resume printing and allocation USDT throughout the market.

However I came across something else, Circle (company that controls USDC) published their last transparency report in December which is right when crypto began to surge again. Wonder if that's at all related - could just be that the audits have become more complex and time consuming with everything that's going on.

https://www.centre.io/usdc-transparency
Green Tea Crew

Meditation Crew

LaCroix Crew
Quick Navigation Top Misc
Bookmarks
Digg.com
Digg
del.icio.us
del.icio.us
Stumbleupon.com
StumbleUpon
Google.com
Google
Facebook.com
Facebook
Posting Permissions
  1. You may not post new threads
  2. You may not post replies
  3. You may not post attachments
  4. You may not edit your posts