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

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6 minutes ago, invest2lose said:

isn't the problem because unbacked tether is causing fake demand? if that demand disappears, who knows what the floor price for btc would be today.

Many different things to consider but I agree . Let’s just hope that big exchanges like binance offer fiat pairings soon and that  xrapid creates constant high demand 

 

according to some reports otc volume is much higher than what we see on lcw and other sites , so I am not too worried . Clever people should probably leave tether alone for now and switch to other stable coins or just btc 

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36 minutes ago, invest2lose said:

isn't the problem because unbacked tether is causing fake demand? if that demand disappears, who knows what the floor price for btc would be today.

    If it’s fake demand, then Fidelity, Bakkt et al got suckered. 

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Hypothetically speaking assuming btc becomes $0-10 and xrp essentially $0 the playing field will be even and we will be able to see the effects xRapid and other Ripple ventures have on xrp price. A true decoupling in other words.

Or people can just dump all their random alt coins and btc and that money pours into a legitimate project like xrp.

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1 hour ago, bayarea510 said:

Hypothetically speaking assuming btc becomes $0-10 and xrp essentially $0 the playing field will be even and we will be able to see the effects xRapid and other Ripple ventures have on xrp price. A true decoupling in other words.

I mean I guess so but that would be a pretty small positive in a pretty catastrophic meltdown. Remember Ripple needs xrp to have value as much as we do. A meltdown in the market would set us back years, if we ever came back at all.

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9 hours ago, automatic said:

Bitfinexed is a moron and will continue to be so. He is like a rabid dog, losing all perspective because of his hate and actually spreads more misinformation and FUD than Bitfinex themselves. I didn't read through that entire pile of horse manure because I have better things to do, but here's one example where he spreads deliberate misinformation.

Quote

What do you mean, “pretend KYC/AML”?

When I say pretend-KYC/AML, essentially there are ways around complying with KYC/AML on the exchange. For example, let’s say you’re a drug dealer. You buy bitcoins with cash. Send the Bitcoins to Bitfinex. Sell for US Dollars on Bitfinex. No KYC required. You need the USD? Buy Bitcoin with the USD on Bitfinex. Withdraw, cash out at an ATM. You have a USD bank account with no-KYC/AML. That’s illegal.

Except when you sell BTC for USD on Bitfinex, you need to be KYC/ AML approved to withdraw it. Otherwise it will sit on the exchange until you do.
I have done KYC / AML applications for several things, not just crypto exchanges and the documents requested by Bitfinex are some of the most comprehensive. 

 

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3 hours ago, invest2lose said:

isn't the problem because unbacked tether is causing fake demand? if that demand disappears, who knows what the floor price for btc would be today

Since there is no way to price Bitcoin on fundamentals, things can get baked in over time. Say you wash-trade BTC from $10 to $100, then real people step in, bid it up to $500 and continue to buy dips and make profit. Both floor and ceiling are psychological now. With a penny stock, you could say the P/E looks ridiculous, but with Bitcoin you can't. 

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8 hours ago, invest2lose said:

so is the current tether scare over until next year?

Not until USDT/USD peg is stabilized.  As long as Tether is running at a discount BFX will be bleeding money out.

Once it stabilizes - yeah, it's back to business until next time.

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3 hours ago, LilBender said:

Bitfinexed is a moron and will continue to be so. He is like a rabid dog, losing all perspective because of his hate and actually spreads more misinformation and FUD than Bitfinex themselves.

Whistleblower personality - it makes him frame the facts is the worst possible scenario and blow the whistle.  This can be seen in the latter part of the interview;  he is doing well when he is describing his research (first half), but once he extrapolates the research to describe anticipated consequences he quickly turns fatalistic.

The truth is always somewhere in the middle.

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