Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
fluidjax
on 31/01/2018, 14:03:12 UTC
It might be a bit offtopic but have you already seen this?
https://www.reddit.com/r/Tether/comments/7u3u0c/tether_tokens_on_the_ethereum_blockchain_have/

Quote
Blacklist & Destroy
The following is for Tether tokens on the Ethereum blockchain only.
The Omni/Bitcoin blockchain Tether tokens function differently, though similarly as well as they can freeze addresses.
Looking through their smart contract source on lines 264 through 299 are the blacklist and destroy functions.
I have excerpted these lines in this pastebin.

Summary
Tether is able to unilaterally blacklist any Ethereum address.
Doing so labels the user as evilUser and all their Tether tokens are designated as dirtyFunds.
Once a user is blacklisted the destroyBlackFunds function can be used on their Tether token balances.
This sets their Tether token balances to 0 and decreases the total supply for the affected Tether tokens.

Whats the problem?
Tether is not a real crypto currency, its centralized and it is required that the owners are fully trusted.
If they add blacklisting and fund destruction, you shouldnt be scared, because you already fully trust them.
If a currency is backed by something, you need to trust the people who are holding the backing.
If you don't trust Tether then don't use them.