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ALT Coin discussion

Discussion in 'Blockchain & Cryptocurrency Mining' started by Gunna, Oct 10, 2017.

  1. douver

    douver Member

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    Man there is literally nothing exciting happening in crypto markets lately.

    Bitfinex has got a bit of a price premium, not liking the look of it (liquidity issues somewhere in the market???), so hedging my coins here. Current plan is if BTC breaks around $6.9k will buy back.

    By the way, both Bittrex/Poloniex have non-tether based USD trading now so you only have to trust the exchange, rather than both the exchange and tether. Wish they had that back in January.
     
  2. clonex

    clonex Member

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    has anything actually happened since everyone was blaming the upcoming chinese new year earlier in the year? :D
     
  3. whatdoesthisdo

    whatdoesthisdo Member

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  4. koss

    koss Member

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    Well that's a bit article about some serious drama at the Cardano Foundation, doen't sound like it will have any impact on development. It's kind of a division that hasn't been doing much good anyway.
     
  5. whatdoesthisdo

    whatdoesthisdo Member

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    It's not an article, it's an open letter from Charles H. Hopefully it wont effect price negatively.
     
  6. douver

    douver Member

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    Well if you're in a coin that hypes the crap out of it when you should be selling, expect FUD shakeouts when you should be buying. The letter talks about problems that started over two years ago, with what real problems caused now or over that time??? My guess would be plans are in place for some new board appointments at the Cardano Foundation.

    Speaking of FUD, starting to think the Bitfinex FUD is a bit overplayed now, if Bitfinex had real ongoing fiat depositing issues as reported - surely it would be trading lower than other exchanges rather than higher. Anyway I've bought my coins back and plan to hold unless BTC 5.8k-6k support fails.
     
  7. koss

    koss Member

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    https://cointelegraph.com/news/cryp...fiat-deposits-expects-to-resume-within-a-week

    Doesn't sound over played to me.
     
  8. douver

    douver Member

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  9. koss

    koss Member

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    Do you know anyone who has successfully purchased Tether with fiat from Tether inc?
    Go try to, see if you can.
     
  10. douver

    douver Member

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    That's like me saying AUD is a scam because you don't know anyone who had bought it from the RBA. Their target market is corporates or individuals through Bitfinex.

    It has been easily bought or redeemable for years and exchanges (who are their target market) like Binance/Bittrex/Poloniex/Kraken/Okcoin trust it.

    On a side note, as US raises rates - these stablecoins are getting more and more profitable. Example Fed Reserve has set 2.25%, Tethers has 2.7Billion is a interest of 60Million per year - they pocket the lot. Wonder when someone releases a stablecoin with a bit of interest?
     
  11. koss

    koss Member

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    That's not what I asked you. I will repeat the question:
    "Do you know anyone who has successfully purchased Tether with fiat from Tether inc?"

    Tether inc supposedly takes $US deposits and creates Tether tokens in a 1:1 relationship with the deposits.
    I can't find any evidence of anyone depositing $US to back these Tether.
    Try and do a $US deposit on the Tether Inc site, I couldn't.
     
  12. whatdoesthisdo

    whatdoesthisdo Member

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    Do they need to? AS far I see it, all they need to do to is buy USD with whatever coin was used to buy the tether? eg I buy tether with btc they then sell the btc for usd and bank the usd. It seems like a strategy to get around KYC laws? I am no expert though and haven't really been following the saga.
     
  13. douver

    douver Member

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    You also didn't prove the AUD wasn't a scam either as you can't buy it direct either. I'm just saying your conclusion that just because a someone doesn't do business directly with the general public makes them a scam is a bit of a leap and a half.
     
  14. shredder

    shredder Member

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    That same inaccessibility makes a bank run difficult/impossible. Which is one of the protections Tether has.

    Kraken is the only USDT-USD exchange with any significant liquidity, but it is only a small fraction of the liquidity to enable a Tether-to-fiat bank run.

    Therefore the only way for the population to exit Tether en-masse is to buy crypto with it, which would in turn pump crypto prices.

    It's not so much a scam, as it is a clever, complex, multi-layered money-making racket (i.e. not unlike fiat itself).
     
    Last edited: Oct 14, 2018
  15. dirkmirk

    dirkmirk Member

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    What's the business case for tether?

    If the money is locked away earning interest from bonds or bank accounts, how are they making money?

    If someone is loaning tether the money, they invest in low risk investment and they need to take a cut, why would anyone loan tether the 2.7 billion dollars?
     
  16. douver

    douver Member

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    If the deposits are real, tether is making over US$50million plus per year in interest. They don't pay interest to USDT holders, who effectively lose money based on inflation every year. Very little risk or work on their Tether's part for a pretty big payday. Seems a pretty good business case to me, that's why everyones making a stablecoin at the moment.
     
  17. dirkmirk

    dirkmirk Member

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    Something doesn't come from nothing, didn't they go from 10 million at the start of last year?

    I'd argue if the deposit/money was real tether aren't making 50 million a year or anywhere close to it, why would tether get to keep all the interest on the deposited money and where did it come from?
     
  18. douver

    douver Member

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    I think you're effectively asking the same thing as 'why did crypto go nuts in 2017'?.

    So Tether got popular started when altcoins went crazy on Poloniex 1st half 2017, people wanted somewhere to keep their profits and didn't trust BTC, so people bought Tether. Tether was in high demand again Nov'17/Dec'17/Jan'18 as altcoins went crazy again on Bittrex/Binance. Also major altcoin exchanges like Binance/Polo/Bittrex's USDT volume is similar to their BTC volume now, so a lot of people are using it.

    Total altcoin marketcap versus Tether is actually pretty similar (more accurate in my mind would be altcoin volume vs tether - if you could get accurate volume), Tether just hasn't dropped off as much:


    upload_2018-10-14_11-29-15.png upload_2018-10-14_11-29-45.png
     
  19. koss

    koss Member

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    Video blog from Charles Hoskinson about the recent Cardano events.
     
  20. dirkmirk

    dirkmirk Member

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    Maybe a blip but tether trading at 96 cents was 97 cents which intially sparked my interest.

    Lots of trust for tether if people/entities were trading dollars for thethers, seems a premium right now for dollars
     

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