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Why Tether won't matter in the long run


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As most of you probably have read by now, Tether is becoming a scary situation.  There is speculation that they have been printing counterfeit money to the tune of 2 billion dollars, and injecting it

I'll try to explain why Tether is a clusterfk: On the surface it may seem that Tether is in essence just another crypto, albeit one that is pegged to 1 USD.   There is nothing particularly proble

Here's a suggestion: Someone who is good at community organizing should start a petition for exchanges to delist Tether.  If a free market is supposed to be self-regulating, then let's self-regul

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5 minutes ago, hodlefer said:

So when Tether takes a sh*t and everyone on reddit and xrpchat is saying that crypto is done forever, just quietly accumulate and hodl.  The market is going to come back stronger and XRP will look like a very attractive investment as it will have real institutional uses and partnerships. 

Isn’t it possible that a huge crypto crash could destabilise those partnerships? A very large and public crash in xrp price would surely damage confidence in its utility, no?

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1 minute ago, Seoulite said:

Isn’t it possible that a huge crypto crash could destabilise those partnerships? A very large and public crash in xrp price would surely damage confidence in its utility, no?

I can see where you are coming from, it would definitely put a strain on institutional confidence.  But another thing to think about is that a large public crash, especially caused by  criminal activity, will likely bring regulation to the space.  XRP is by far the cryptocurrency best positioned to handle regulation, which will help keep those partners feeling safe.

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The crash will drop prices anywhere from 30% to 80%:

http://www.tetherreport.com

https://twitter.com/bitfinexed

Fellow zerpers, get your XRP and $ out of Bitfinex, Kraken, Binance, Poloniex, and all exchanges that use USDT. Using any tether enabled exchange is the same as using bitfinex. When the crash happens there's a good chance you lose everything. Here's a full list of toxic exchanges:

https://coinmarketcap.com/currencies/tether/#markets

And spread the news! The sooner the crash happens the LESS devastating it will be. 

Edited by flanman
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3 minutes ago, flanman said:

Fellow zerpers, get your XRP and $ out of Bitfinex, Kraken, Poloniex, and all exchanges that use USDT. When the crash happens there's a good chance you lose everything. 

While I agree with your message, it sounds a little frantic and panicky, which the whole point of this post is that panic is not necessary and will only cause poor decision making. 

 

Yes, if you store your zerps on an exchange that used USDT (or any exchange in general honestly) you should go ahead and move them to Toast or some other off exchange wallet.  As these exchanges will likely experience unprecedented volume in the case of a large crash and could possibly fail.  That being said don't panic, read the initial post and repeat after me: "accumulate and hodl"

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27 minutes ago, hodlefer said:

The market is going to come back stronger and XRP will look like a very attractive investment as it will have real institutional uses and partnerships.

Absolutely spot on - but the problem is how low will "good" cryptos (eg. XRP) go before it can recover and thrive? 0.50 definitely, 0.20 probably, 0.10 possibly......scary thoughts!

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Just now, RippleHerToShreds said:

Absolutely spot on - but the problem is how low will "good" cryptos (eg. XRP) go before it can recover and thrive? 0.50 definitely, 0.20 probably, 0.10 possibly......scary thoughts!

This is why I plan to do some dollar cost averaging when things get low and it may never drop below $1 or $.50, we just don't know.  Remember that time you thought "man, I wish I had bought more in November when the dips were around $.15",  well if you still believe in the tech and the company you would be crazy not to buy more at the bottom, wherever that may be. 

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Just now, RippleHerToShreds said:

Another thought - why is the Tether "problem" any different form other crypto pairs (eg. BTC/XRP). There is nothing under-pinning XRP (unlike Tether which is supposed to be Dollar backed).

I don't want to go too far in depth about why tether is a problem in this thread.  But here is a reddit thread that will explain it in detail if you have the time: https://www.reddit.com/r/Bitcoin/comments/6ypy58/the_truth_about_bitfinex_and_tether/   

 

Sparknotes version is that Tether is created by Bitfinex and then used to buy BTC.  So they print $100,000,000 in USDT and buy $100,000,000 worth of BTC without any new money entering the ecosystem.  Driving the price of BTC up with buy pressure that should not exist.

 

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7 minutes ago, Premium said:

If this was really happening why is bitcoins price not rising to new highs

Correlation does not imply causation, but these charts are highly correlated.

 

Look at the market cap of tether(blue in first chart) and price of BTC (second chart).  This is for 2017-present.

5a70942a6fca6_ScreenShot2018-01-30at10_48_28AM.png.c64174c76dcf87a31caeedf6af3b65a7.png5a7094246b034_ScreenShot2018-01-30at10_48_41AM.thumb.png.262a1475e67a9d9eb4a6a4357d02a858.png

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Again, this thread is not intended to be a "Why is tether bad?" debate.  If you don't see a problem with tether than great, don't post here.  This is intended to be for those people who do see a problem and have begun to stress about it.  So if we could refrain from the debate over whether Tether is a problem that would be awesome. :)

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