Ninjastic
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Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
fragout
on 21/11/2017, 14:00:10 UTC
Quote from: Cassius on November 21, 2017, 01:49:16 PM
Quote from: fragout on November 21, 2017, 01:40:11 PM
Quote from: Cassius on November 21, 2017, 01:20:43 PM
Quote from: fragout on November 21, 2017, 01:13:11 PM
Tether website gone offline. $30 million "hack" last night. Not liking this

I cannot imagine what taking USDT out of play would do to the ecosystem at this point.

Thats only part of the potential problem. If they (bitfinex/tether) were issuing tether without any backing ($670 million remember) and using margin on top of that to pump btc, We are in a lot bigger trouble. Not only will everyone who holds tether have a worthless token but we have no idea what any coin is actually worth in the real market.
Its been 24hours since bitfinex said they would be releasing an official statement.

I might be getting paranoid here but it feels like de ja vu (goxed)

I don't think it's paranoia if it's happened before. More like suspicion or realism Smiley
Worst case scenario it does look like a Willy/Gox situation, with QE USDT being used to inflate BTC prices. But I don't think it will be that bad. Even if USDT is a fractional reserve, which would be no trivial thing, it accounts for a relatively small proportion of the market and broader demand is growing fast.
Not a picnic, but no Gox/China ban scenario either.

Broader demand is growing because btc is mooning all year long which is making constant headlines. USDT is on almost all exchanges and $670 million with X10 margin is far from a small proportion of the market. Imagine the headlines if the sudden price rise this year is attributed to tether.
When gox happened btc was a much smaller eco system. If it happens again, its going to take years to recover if ever.