Some time ago I expressed my concerns about Tether and their stable coin USDT. They’ve always promised that every single USDT issued will be backed by one USD. As long as that’s the case, there is nothing to worry about. They promised regular audits by a reliable third party, but never delivered. Tether’s website was changes multiple times throughout 2018, but a recent change now says that Tether no longer backs their issued USDT by USD. Instead it gets 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’)”.
The part: “loans made by Tether to third parties” worries me. This is essentially what a bank does. But Tether doesn’t have a banking license.
To demonstrate my concern:
- Someone gives Tether 10 million USD
- That someone receives 10 million USDT so he can trade on all exchanges
- Someone else borrows 5 million USD from Tether (the “loan” part from their updated website)
- That person now buys bitcoin with it for example (still no problem up until this point)
- Bitcoin loses 50% of its value in just 2 weeks time (this becomes a problem)
How is Tether supposed to get its money back? They’re basically running a fractional reserve just like a bank, only without the proper licensing.
I’m expecting some government (probably the US because the DoJ is already looking into it) will eventually try to shutdown this shady operation. That won’t end pretty, because at time of writing 83% of all bitcoin trading volume is due to Tether, according to CryptoCompare. The picture below comes from Coinlib.
The part: “loans made by Tether to third parties” worries me. This is essentially what a bank does. But Tether doesn’t have a banking license.
To demonstrate my concern:
- Someone gives Tether 10 million USD
- That someone receives 10 million USDT so he can trade on all exchanges
- Someone else borrows 5 million USD from Tether (the “loan” part from their updated website)
- That person now buys bitcoin with it for example (still no problem up until this point)
- Bitcoin loses 50% of its value in just 2 weeks time (this becomes a problem)
How is Tether supposed to get its money back? They’re basically running a fractional reserve just like a bank, only without the proper licensing.
I’m expecting some government (probably the US because the DoJ is already looking into it) will eventually try to shutdown this shady operation. That won’t end pretty, because at time of writing 83% of all bitcoin trading volume is due to Tether, according to CryptoCompare. The picture below comes from Coinlib.
Waking up to so much green. Ah I'm going back to bed
Hashed Plutus (Crypto Signals, Technical Analysis, Education and News)
Photo
Couch potatoes it time we push the stops higher or book profits. I would choose the latter and secure the gains by closing long.
Some resistance over head. Watch out bullies.
Some resistance over head. Watch out bullies.
Hashed Plutus (Crypto Signals, Technical Analysis, Education and News)
ETC/BTC has been quite lately Looks bad in here. Lots of selling pressure came in lately and the ichimoku has a big ass red cloud hovering over the candles. SMA combo needs some more time for confirmation. I would wait for them to cross. RSI and MACD seem…
Never have I ever seen this follow so perfectly.
https://www.tradingview.com/x/k5BKpbYn/
https://www.tradingview.com/x/k5BKpbYn/
📨 Hashed News Update
🇯🇵 The Japanese authorities are pursuing charges against an 18-year-old over an alleged $134,000 cryptocurrency theft.
via CoinDesk
🗓 Riot Blockchain plans to launch a regulated cryptocurrency exchange in the second quarter this year.
via ccn
💠 Ethereum core developers have reaffirmed that they will introduce a novel Progressive Proof-of-Work (ProgPoW) mining algorithm in an upcoming hard fork.
via Cointelegraph
🇺🇸 U.S.-based cryptocurrency exchange Poloniex has committed 50 percent of trading fees from the first month to the Grin General Fund.
via official blog
🎵 Social music streaming app Playlist plans to embrace the Cosmos network in an attempt to design a decentralized hybrid ecosystem.
via The Block
🇯🇵 The Japanese authorities are pursuing charges against an 18-year-old over an alleged $134,000 cryptocurrency theft.
via CoinDesk
🗓 Riot Blockchain plans to launch a regulated cryptocurrency exchange in the second quarter this year.
via ccn
💠 Ethereum core developers have reaffirmed that they will introduce a novel Progressive Proof-of-Work (ProgPoW) mining algorithm in an upcoming hard fork.
via Cointelegraph
🇺🇸 U.S.-based cryptocurrency exchange Poloniex has committed 50 percent of trading fees from the first month to the Grin General Fund.
via official blog
🎵 Social music streaming app Playlist plans to embrace the Cosmos network in an attempt to design a decentralized hybrid ecosystem.
via The Block
Time for a community requested analysis. I want you'll do hit me with the altcoin you find potential in. Both short term and long term. I'll need a substantial reasoning behind your claim for it to be the best in both terms.
Also if you want me to post an update about a coin that I have forgotten about (I sincerely apologise) ping me.
Send @cryptopotatoes a message with your version of "The next big thing"
Also if you want me to post an update about a coin that I have forgotten about (I sincerely apologise) ping me.
Send @cryptopotatoes a message with your version of "The next big thing"
I asked for help and I got love. So many people from all across the globe sending me the love. I wouldn't ask for something else.
Lmao okay that's a lie. I want you'll to show some love to daddy. Get the word out. Share @hashedplutus with everyone you can.nit would be of great help.
You surely don't want them to be eaten by the money hungry sharks when they can get such great content for free.
Lmao okay that's a lie. I want you'll to show some love to daddy. Get the word out. Share @hashedplutus with everyone you can.nit would be of great help.
You surely don't want them to be eaten by the money hungry sharks when they can get such great content for free.
Hashed Plutus (Crypto Signals, Technical Analysis, Education and News)
Told y'all the SMA is gonna cross. Entered our blue zone where I longed. Clean entry and no mashing of my potatoes. This one is a low leverage mid term trade. It's gonna have a beautiful painting setup in a couple of days. https://www.tradingview.com/x/cUsXcmQI/
ADA Trade Update
One of our longer trades. About 1 week down from our entries and the results are mesmerising. Even if you didn't open the long on bitmex and just bought it on binance, 18% in the kitty. I'm the wilder spec who would choose bitmex.
Picked a nice 5x long and now im chilling on it. Reduced position a couple of hours ago by closing about 50% of my trade. Now I would suggest you guys do the same and push the stops higher.
Depends on your gameplan. I would push it to atleast 1150 ranges to ensure profits.
https://www.tradingview.com/x/HhStvm6g/
Mash that Potato Baby!
One of our longer trades. About 1 week down from our entries and the results are mesmerising. Even if you didn't open the long on bitmex and just bought it on binance, 18% in the kitty. I'm the wilder spec who would choose bitmex.
Picked a nice 5x long and now im chilling on it. Reduced position a couple of hours ago by closing about 50% of my trade. Now I would suggest you guys do the same and push the stops higher.
Depends on your gameplan. I would push it to atleast 1150 ranges to ensure profits.
https://www.tradingview.com/x/HhStvm6g/
Mash that Potato Baby!