Tether manipulating cryptocurrency markets once again, another 300mln new tokens issued, BTC up 6%
If you haven't been following the cryptocurrency space lately, Tether is a coin that is always supposed to be pegged to USD and no matter what direction the market is going Tether should always be worth 1$. Also, every Tether is alegedly backed 1:1 in USD and EUR. Something people have been questioning for quite some time and Tether firing the auditor that was supposed to prove that they got the money to back all of the tokens they are issuing just added fuel to the fire of suspicion that has been building up for months now.
Everyone in crypto is very worried about the tether situation, and if these really count as dollars
And if it turns out they don't, Tether has no legal responsibility
If that wasn't enough to raise a couple of eyebrows, Tether has been linked multiple times with affecting the cryptocurrency markets direction with issuing new tokens and shady trading.
Example of wash trading on Kraken where in 24 hours, Tether has shown over a billion US dollars in market volume. Can this be the reason btc went up from 1k to 20k and dropped rapidly all the way to 7k? Most likely not the only one but probably the biggest effect in this bull run is caused by Tether printing and illegal trading.
Printing new Tether and manipulating the market
When the 6 month long bull run for btc and other altcoins finally came to and end, rapidly decreasing cryptocurrency prices and taking the whole market down the drain. Tether jumped in on Tuesday at 6:51 PM UTC issuing another 300mln of new tokens for the first time after firing their auditor. And guess what. BTC went up by 6% that day. It is also worth mentioning that Tether has issued nearly $1bn worth of USDT since January.
“$300,000,000 NEW TETHERS IN ONE DAY.
The largest grant of fraudulent and unaudited Tether tokens in history. Oh look, Bitcoin jumped up big time today.
What a f****** surprise. First new Tethers since they fired their auditor.”
Note: Bitfinex shares leadership with Tether. And Tether has been linked numerous times to other high ranking exchanges and using illegal trading techniques to manipulate the direction of the cryptocurrency market. This has led critics like Bitfinex’ed to criticize both, the exchange and the token for their apparent lack of transparency, since the company has not had an external audit done of its cash reserve.
In response to Bitfinex’ed’s previous online criticisms, crypto exchange Bitfinex had threatened legal action against its critics in December of last year. In response, Bitfinex’ed has reportedly hired a D.C. based lawyer for any legal battle with the exchange.
Bitfinex'ed fears no one and daily continiues to expose Tether and the shady business they are operating.
What does this mean?
The whole cryptocurrency market bull run we were so excited about might be nothing but fake and caused by Tether and Bitfinex illegal trading to acquire profits from issuing new tokens and selling them for other coins. Literally creating money and traffic out of thin air for who knows how long. Meaning the markets are most likely overalued by a lot. That's not a problem if people continue paying the high prices and the demand for crypto stays the same. But what if Tether falls appart and everyone realizes that they don't even have half of the money to back all the tokens they are issuing? What if feds come in and arrest them for illegal trading and the pumps stop?
The ticking timebomb
This surely can't go on forever, or can it? IMO it must go down. It's just a matter of time because if for some reason Tether stops pumping the markets and/or gets proven to be a scam the whole cryptocurrency market might go down so low that the whole world will be questioning the legitimacy of cryptocurrencies. While I'm allmost sure that Tether is one of the main reasons of the recent crypto bull run I really don't know how and when this will end. But similar to Bitconnect, Tether is just raising too many questions that they can't/won't answer and when they will finally be taken to court for their illegal practices we will experience a bloodbath like you never seen before. With prices up to 80% in the red and people loosing almost everything they had Tether going down will be something that will have an enormus impact on the markets and the future of cryptocurrencies.
The problem
Having a coin always worth 1$ is a great tool for traders wanting to escape the volatility of the markets and something that is necesary for long term viability of cryptocurrencies. But Tether is not going to be our go to USD pegged coin as it's not being able to prove that they indeed have all the USD to back the Tethers they are issuing.
Solution
An open source code coin pegged to USD with an transparent and confirmable bank account balance 24/7 that we can trust. And a way to stop illegal trading by big exchanges or big money investors. Just having a pegged coin isn't enough if there are traders pumping and dumping coins left and right, day and night. This just isn't viable for long term and we will never get to use cryptocurrencies as "everyday money" if we don't find a way to stop it.
Conclusion
Tether most likely isn't sustainable long term and the people behind it have the money and power to move the markets in any direction they want. We are safe until Tether falls appart but when that finally happens (soon, I hope) we will have FUD like you never seen before. Markets crashing by enormous numbers and shrinking to where they were a couple of years ago. That will be a big setback for cryptos and something that will be really hard to recover from. I really hope it happens now rather than in a couple of years so that we can get it over with and continue growing. If you want to prepare for the worst case scenario and profit from the Tether fall just save your useless pieces of toilet paper we like to call money and have them ready for the Tether bomb exploding and when it does, wait for the FUD to kick in and buy at the lowest point of the dip and hodl.
Been looking at the tether situation for a while.
It seems to me another avenue to keep the broken fiat system afloat for as long as possible. I think it's also the banking cartel's most transparent attempt to crash the crypto space as a whole in an attempt to give governments and herd-mentality people the excuse to ban any and all forms of currency that aren't tethered to the fiat system - pun intended.
I agree, better if tether crashed sooner than later. Great article!
It seems worse as every new story about it comes in. You might be correct on the attempts to crash crytos. That's something I was generally thinking the governments want to do so that they can in the same time let their monetary system fall appart and blame cryptos on it. Anyone with a common sense could judge that to be ridicilous as their house of cards was about to fall anyways because it's broken, fake and dependant on credit. Fucked up world we live in.
Anyway if/when that happens I still believe crytos will survive, but most will just evaporate under down pressure of btc colapsing, leaving only a couple alive. Steem will be one of them, just because we are building an infrastructure around our blockchain and expanding with stm's and a lot of very interesting projects.
Btw when I saw you use herd-mentality to describe people I had to see what you blog about. Read your first blog and wasn't surprised to see that you are a critical thinker trying to make others do the sam. Was dissapointed to see you get so little for such an amazing post, and I'm sure others don't fall far from that level. Don't get discouraged by low rewards, you will surely get the recognition deserved sometime. When? Idk, but with that kind of quality work, success is inevitable.
Upvoted and resteemed!
I am far from being discouraged. I constantly meet aware people on here every day, and I am super glad for being able to have added you to that circle today. High five for parachute minds!
As for the potential tether situation - my question at the moment is whether it would happen before EOS launches its main net.
Went to bed early but woke up refreshed after an hour despite my best efforts - and I had your article on my mind. I think I just finally had to read it from someone else on that level of clarity. Now I am seriously pondering holding all my tiny fiat investments into crypto until we really hit bottom, as you mentioned in your last paragraph of the article. It's all my decision of course, but I feel you hit the nail on the head with it.
I will keep you updated if I hear anything of substance to that situation.
Thank you for your support!
Had to say it just to be sure someone as talented as you doesn't leave Steemit :) Yep, meeting likeminded people here is awesome. And what I noticed is that there is a lot of critical thinkers here and the most of the high sp people are the same. Although I had absolutely no inspiration to write about important things/events sheeple need to know about, I'll continue my evangelism as soon as I get inspired again.
Sadly I don't have an answer for your qeustion because only they can know when it will happen. Who knows how/if they will pull it off. When is EOS launching their main net? I have been thinking about investing some as I'm a real danfan, think he is a total legend and his projects will go very far in this crypto world.
BTW how's the situation with fake imigrants in Germany? A friend of mine told me he saw 6 of them doing drills he was doing in the Foreign Legion! Preparing for an attack from the inside? Most likely so. What do you think?
Np, keep up the good work!
Eos launch is scheduled for June or July, and it might be a good idea to get some before then. On the other hand, if the tether crash is going to happen, it's really a gamble investing anything before then - "will eos launch before the crash" is the question and nobody can say for sure.
City images are changing drastically, it's noticeable everywhere. And while I did not have any negative experiences so far, there are many reports, testimonies and reports about it happening every day. A situation which forces everyone to wake up or be forever silent. In a strange way we needed something major to shake up the sleepy herd here, but it has gotten to a point where you can see the bitter end at the horizon, and it's still being defended by the dogmatists thinking they are virtuous.
The real issue is that the actual refugees who need our help are not the focus of concern at all. If we actually helped palistinians for example - I don't know of anybody who would have something against that. Problem is we don't help them, only all the others who are not fleeing bombs but followed the traiterous invitation that the supposed Western elites gave to them.
I am really focussing on my work and path, I don't owe this "country" anything. Have tried for years but the herd mentality is so sickening that I see my energy dwindle because of the stubborn indoctrination of people here. So I will move on, to a place where I feel I can actually be of service and not being shunned for wanting to help people see the flaws in what they perceive as "the way it has to be". I'd rather not get into specific stories, suffice it to say - there are horryfying ones on a daily basis.
The "kindergarten"-world is taking huge hits every day, yet people cling to their misguided patterns of thought, that never were their own to begin with. But they just can't see it. They think a certain worldview to be "tolerant" and "virtuous" while it is provably the exact opposite.
This entire Tether situation doesn't make me feel warm and cozy inside, thanks for the update.
That's seriously worrying. I wouldn't touch USDT anyway. In regulated stock markets the stock trading would be suspended pending clarification while in the crypto world investors must make their own judgement. If someone's buying tether despite these worrying news then he can blame himself.
I'm not 100% sure but I think bitshares have a token linked to USD too with way more transparency then tether.
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very good post :) @runicar
Wondered about Tether since I first heard about and used it. I was curious about virtually everything mentioned in this article and my primary professions are alternative healing and art. :D
I am @kingsteen, allow your post I resteem, thank you, happy work.
Thank you for bringing this to light in a clear concise format, many people just like to say teether is a scam (which it looks to be) without properly articulating why.
Thanks again.
but exchanges still use them as a currency. about sustainability. half of the tokens that we see today are already dead. in the longterm btc might be the only one.