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flanman

*PSA* Tether is putting these XRP exchanges at risk: Bitfinex, Bittrex, Kraken & others.

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Get your XRP out of the exchanges listed in the title. Now.

What's a Tether?

Tether is a cryptocurrency that's supposedly backed by USD. 1 Tether = 1 USD. Many exchanges use Tether because it's easier to move than traditional USD, as it doesn't require a bank and avoids regulations. Many exchanges rely on Tether.

What's the fuss about?

The problem is that nobody knows if Tether is actually backed by USD, and after issuing billions of Tethers in a short timespan, it's more likely that this is fraud.

This article neatly sums up the problems:

https://mashable.com/2018/01/29/bitcoin-tether-stablecoin-alleged-scam

I own XRP, why should I care?

The risk to you as an XRP holder comes when enough people demand real USD for their Tethers, which could shutter many of the exchanges in the title and cause a BTC crash between 30% to 80% as estimated by a report here:

http://www.tetherreport.com/

A BTC crash would likely cause an XRP crash, and further scare the banking industry away from all cryptos.

What's being done?

Today we learned that the US government is not happy about the idea of counterfeit digital USD:

If this is indeed fraud (which would not be surprising at this point) we need Tether to crash sooner than later to lessen the impact on the industry.

What should I do?

Unless a full and transparent audit is done, which is unlikely, you should assume Tether is a scam. Stay away from any exchange that uses "USDT" aka Tether. A full list is here (edit: i guess that's not a full list, check your exchange!). Tell friends and family to get out of Tether-based exchanges.

Move your XRP to the XRP Ledger. You can do this via Gatehube, Toast, or other places.

or use quality exchanges that trade in real USD, such as Bitstamp, Gatehub and Uphold.

And stay up to date:

https://twitter.com/Bitfinexed

Edited by flanman

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Did we not know this was coming with the overall Crypto market being so young and the average Crypto buyer not having a clue what he or she is getting into.  Welcome too the Dark age of Crypto soon to be followed by the Golden age where regulations rule the few that have withstood the onslaught become household names.  It's time for the riff raff to be shaken out anyway.

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Just now, 1todd960 said:

You'll have to teach me that math.  Lol

I calculate it from where BTC started at the beginning of 2017 before the tether fraud drove the price of BTC from $800->$20,000.  Since BTC has already traced back to $9500ish now I can see it falling back to $800ish if tether was found to be completely fake, which wipes the remaining 1000% gain remaining from the beginning of 2017.  Basically tether being fake implies the valuations generated from all of 2017 are more or less fake to a degree.

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Just now, Zedy44 said:

I calculate it from where BTC started at the beginning of 2017 before the tether fraud drove the price of BTC from $800->$20,000.  Since BTC has already traced back to $9500ish now I can see it falling back to $800ish if tether was found to be completely fake, which wipes the remaining 1000% gain remaining from the beginning of 2017.  Basically tether being fake implies the valuations generated from all of 2017 are more or less fake to a degree.

Guess my point is.... u can go up 1000%.  But how do you go down 1000%?  $10,000 minus 1000% = negative $90,000

 

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1 minute ago, 1todd960 said:

Guess my point is.... u can go up 1000%.  But how do you go down 1000%?  $10,000 minus 1000% = negative $90,000

 

No I understood your point that's why I was trying to explain it the way my brain works it out, which often gets me into these kinds of confusing moments throughout my life. :lol:

I guess I should have just said -95%, but my brain tells me -1000%! :wacko3:

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29 minutes ago, dadofzara said:

I thought BTC Markets was way bigger than Coinspot.

Yer coinspot doesnt even get a mention on cmc market listing for btc

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2 minutes ago, TLG said:

i can’t search the list on my phone 

was bitstamp on there? 

No. Actually the ones that use it are exchanges that CANNOT accept USD wires. Tether is like a substitute for USD.  Bitstamp uses USD.  

Of course this wouldn't be the first time I was wrong.  Or the last.

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4 minutes ago, TLG said:

i can’t search the list on my phone 

was bitstamp on there? 

No. Bitstamp uses real USD according to OP. That said... still might be a good idea to take control of your own secret keys for a while until this blows over.

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