Bad news: Time to avoid TETHER/USDT and maybe Bitfinex
If you're using tether/USDT, some bad news is coming to light.
When I discovered tether USDT, I was in heaven! FINALLY, I had a stable USD-pegged crypto I could use to lock in gains on another currency. It was so good, there were times a month or two ago when I thought the market had peaked that I parked the entire value of my crypto in USDT. I stopped doing that, when, the following day, I realized I had missed out on another 12% gain overnight. Nevertheless, I started worrying.
I did some research and found one or two lone voices, sceptics calling out words of caution. The person had the in-depth knowledge of crypto and markets that ze's criticisms were authoritative. They described how tether was not trully pegged to the USD, and described something fishy going on with bitfinex. Unfortunately, I don't remember that person's username and I didn't save links to their writings. Otherwise, I'd share them with you here now. However, I was so worried by these warnings and the writer's expertise that the impact on me was profound: I moved all of my (already puny) holdings out of USDT/tether and decided to never touch it again.
Now, over the past few days, there are new reports of problems:
- It seems that Tether broke off relations with the auditor it hired to review its books.
- Bitfinex, which owns tether, may be using tether to cover losses from being hacked last year.
- It seems that USDT isn't really pegged to the USD.
There's just too much bad news coming up now to be overly confident. So, buyer beware. Put your money somewhere safe.
If this article was helpful or interesting, please show your support by upvoting it NOW!
Then, please follow up by reading these sources:
- https://www.coindesk.com/tether-confirms-relationship-auditor-dissolved/
- https://medium.com/@bitfinexed/bitfinex-never-repaid-their-tokens-bitfinex-started-a-ponzi-scheme-86a9291add29
- https://news.bitcoin.com/tether-coin-may-be-a-precarious-us-dollar-peg/
- https://mktstk.com/2018/01/28/tether-is-breaking-its-peg-to-the-dollar/
- https://medium.com/@michaelx777/is-tether-being-used-for-money-laundering-34b29fdc2b74
- https://www.ccn.com/?s=tether
*** Interesting, well there are ways to go about doing everything. Using tether can def be helpful when locking in gains and preventing losses, what i do is i only keep my trading value in USDT to trade with and the gains are transfered else where. (or to steem hehehe) either way I think every one that uses tether is concerned but for now it works and with everything there is risk. Just don't keep all the value there lol ***
oh yeah and by the way, in the voice of all the youtube people "this is not finacial advice"
Yikes! https://www.ccn.com/cftc-subpoenas-bitfinex-and-tether-as-questions-mount-over-audit/
Hey. Thanks for the comment. Your approach makes sense. I was just putting too many eggs in that tether/bitfinex basket. Even though that risk seems to be growing, it might make sense to put use usdt/tether for the short term. I wonder if there are any other cryptos that promise stable values (anti-volatility). THAT would be a great idea!
Instructions for exchanges on how to untether and save their customers from losing money: https://medium.com/@bitfinexed/tether-exchanges-how-to-avoid-getting-tethered-d02c6ae2c52c
hey so nice I really like your post! Thanks for it! I actually wrote my 2nd part of my introduceyouself and I write about that I went to jail because of cryptos... lets make steemit together to a better place with our content! I would like to read a bit more about you and maybe do you have some more pictures? Maybe you upvote me and follow me swell as I do? https://steemit.com/counterfeit/@mykarma/2-jail-review-counterfeit-euro-speeeeending-time
More bad tether https://www.coindesk.com/bitcoin-price-looking-heavy-news-turns-negative/