Coin Telegraph
GOOD MORNING STEEMIT,
Well, there have been better mornings for crypto markets... but there have also been much worse! Glass half full and all that stuff!
If you’ve seen the sea of red on your crypto trading app today, it’s been caused by the following Bloomberg headline:
The U.S. Commodity Futures Trading Commission sent subpoenas on Dec. 6 to virtual-currency venue Bitfinex and Tether, a company that issues a widely traded coin and claims it’s pegged to the dollar, according to a person familiar with the matter, who asked not to be identified discussing private information.
Oh god. We knew this was coming I guess.
What is Tether (USDT)
Tether (USDT) is a type of cryptocurrency, whose value, just like SBD used to, roughly mirrors the value of the US Dollar.
The idea was to create a stable cryptocurrency that could be used like digital dollars, allowing traders to keep their money on an exchange when not in a position, rather than cashing out to actual fiat.
Why Tether (USDT) Matters?
Every Tether is supposed to be backed by US Dollars kept in reserve, in a 1:1 ratio. Something that is needed by exchanges to pay out customers if the market suddenly decides to withdraw on a mass scale, or goes bust.
Newly printed Tether has meant investment straight into Bitcoin, as the size of the market continues to grow through injections of new money. But the thing is... well nobody knows whether it actually is backed by US Dollars 1:1.
Bitfinex and Tether could well just be a bullshit scam. This is why money is flowing out of crypto and Bitcoin especially is dumping.
Bitcoin Technical Analysis
The daily Bitcoin resistance zone in blue has continued to hold, while the intraday Bitcoin coiling pattern has of course broken to the down side:
BTC/USD 4 Hourly
Down here, price is at the trend line signaling that we are still in a long term bull market. Let’s just say that we don’t want to see this level break.
Peace ✌🏻.
Instagram: @forexbrokr
Website: www.forexbrokr.com
There are other "Stability Coins". bitUSD, available on BitShares seems by far the best (along with bitEUR, bitSilver, bitGold).
There's also dai, and nubits, which I haven't had time to research.
Thanks tweedlewhopper, I’ll have to check them out. I’ve actually never gotten into BitShares which is sort of stupid on my behalf when I’m so into Steem and EOS.
Wooa USDT is really amazing and plays a big role in the cryptocurrency market, The daily volume of USDT with other tokens is always huge. I am just amazed by the idea behind this amazing token,,, soon we will see digital currencies in our real like and it will be equal to fiat globally that time.
It would be so much easier if they just agreed to the audit and got it done. So sick of all this uncertainty!
if TETHER falls, we will have some instability on the market!
I really can’t see it ‘falling’ as such. Even if it’s not fully backed by USD 1:1, the company has so much money that it’s ridiculous. They could back it if they wanted to, just it’s less profitable for them.
Thanks for the information..I hope things get better.
Just need them to be transparent and it should all be fine.
thanks for sharing Sir. This will help crypto markets
Transparency from Tether and Bitfinex will help.
Useful information buddy. At least this is the logical comparison of the cryptocurrencies. Tether used to be one of the reliable cryptocurrencies where chances of loss were limited to some extent till it was backed with USD like conventional currency but being linked to BTC, it's prone to risks of scam and all that stuff.
It’s more like an unregulated broker that doesn’t have the correct capital requirement to mitigate client risk if things go bust.
I wish they’d just sort it out and agree to proper auditing.
Hopefully.
Dont be offended by zero value vote, I'm newbie here.
Haha not a problem mate. Keep providing quality comments/content and you'll make it eventually :)
Tether has been the only thing holding up the price of BTC. So when the Tether house of cards drops then so is the price.
Not sure I agree with this...
Only Tether? I dont think that would be the case.
Thanks for the link. I've been flagging Tether as one of the big risks for the market for a while now, but at the end of the day it's market cap is less than BitConnect was when it went down, so this could just be a short term panic. The MSM dropped the ball on BitConnect but looks like they're ramping up on this one - probably due to it's relationship with the US Dollar.
It’s also the regulatory risk that weighs further on the market as a whole. So frustrating...
if tether is backed by the US$, then it is backed by nothing printed out of thin air.
😂 Something like that.