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Other options. Close drawer menu Financial Times International Edition. Search the FT Search. World Show more World. US Show more US. Companies Show more Companies. Markets Show more Markets. Opinion Show more Opinion. By moving value to USDT, a trader might reduce their risk of exposure to a sudden drop in the price of cryptocurrencies. Yes, Tether is the first and most well-known stablecoin in the crypto world.
Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein.
As of the date this article was written, the author does not own cryptocurrency. New York Attorney General. Accessed April 12, Your Money. Personal Finance. Your Practice. Popular Courses. Part of. Part Of. Related Definitions. Understanding Cryptocurrencies. Exchanges and Wallets. Key Takeaways Tether USDT is a stablecoin, a type of cryptocurrency which aims to keep cryptocurrency valuations stable.
Tether is used by crypto investors who want to avoid the extreme volatility of other cryptocurrencies while keeping value within the crypto market. Tether tokens trade under the USDT symbol. What Is Tether Used for? What Is the Point of the Tether Token? Is Tether a Stablecoin? Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.
We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear.
Investopedia does not include all offers available in the marketplace. Related Terms What Is Stablecoin? Bridging the gap between fiat currency and cryptocurrency, stablecoins aim to achieve stable price valuation using different working mechanisms.
The funds were allegedly co-mingled corporate and client deposits and no contract was ever signed with Crypto Capital. Reggie Fowler , who is alleged to have connections with Crypto Capital, was indicted on 30 April , for running an unlicensed money transmitting business for virtual currency traders.
Research by John M. Griffin and Amin Shams in suggests that trading associated with increases in the amount of tether and associated trading at the Bitfinex exchange account for about half of the price increase in Bitcoin in late Reporters from Bloomberg, checking out accusations that tether pricing was manipulated on the Kraken exchange , found evidence that these prices were also manipulated.
Red flags included small orders moving the price as much as larger orders, and "oddly specific order sizes—many going out to five decimal points, with some repeating frequently. According to Tether's website tether can be newly issued, by purchase for dollars, or redeemed by exchanges and qualified corporate customers excluding U. Journalist Jon Evans states that he has not been able to find publicly verifiable examples of a purchase of newly issued tether or a redemption in the year ending August JL van der Velde, CEO of both Bitfinex and Tether, denied the claims of price manipulation: "Bitfinex nor Tether is, or has ever, engaged in any sort of market or price manipulation.
Subpoenas from the U. The letter was two paragraphs long and signed with an illegible squiggle, without a printed author's name. A Deltec spokesperson declined to confirm the information in the letter to Bloomberg reporters. Some studies [ who? In fact, it has even been thought [ who?
During the course of a price manipulation investigation by the U. Tether claims that it intends to hold all United States dollars in reserve so that it can meet customer withdrawals upon demand, though it was unable to meet all withdrawal requests in Tether has stated that as of 19 December , it has re-enabled limited cryptocurrency wallet services and has begun processing the backlog of pending trades.
An online critic who goes by the name "Bitfinex'ed"  has raised questions about the relationship between Bitfinex and Tether in ,    accusing Bitfinex of creating "magic Tethers out of thin air". In September , Tether published a memorandum from a public accounting firm that Tether Limited claimed showed that tethers were fully backed by US dollars;  however, according to the New York Times , independent attorney Lewis Cohen stated the document, because of the careful way it was phrased, does not prove that the Tether coins are backed by dollars.
This information is intended solely to assist the management of Tether Limited Tether has repeatedly claimed that they would present audits showing that the amount of tethers outstanding are backed one-to-one by U. They have failed to do so. However, FSS stated "FSS is not an accounting firm and did not perform the above review and confirmations using Generally Accepted Accounting Principles ," and "The above confirmation of bank and tether balances should not be construed as the results of an audit and were not conducted in accordance with Generally Accepted Auditing Standards.
Stuart Hoegner, Tether's general counsel said "the bottom line is an audit cannot be obtained. The big four firms are anathema to that level of risk. From Wikipedia, the free encyclopedia. US dollar linked cryptocurrency. For other uses, see Tether disambiguation. The New Republic. ISSN Retrieved 12 August Tether, which was founded under the brand name Realcoin in , isn't decentralized like Bitcoin or many other cryptocurrencies: One company owns, mints, and manages the Tether supply, which means it's also not transparent.
Tether Limited, the company behind the eponymous coin, can mint as many coins as it wants. Archived from the original on 23 February Retrieved 1 March Archived from the original on 5 December Retrieved 5 December Archived from the original on 15 October Retrieved 15 October Retrieved 23 February The Financial Times.
Archived from the original on 1 October Retrieved 24 October Archived from the original on 5 May Retrieved 5 May Financial Times. Archived from the original on 16 May Retrieved 16 May The Japan Times. Archived from the original on 17 May Retrieved 17 May Tether, the cryptocurrency stablecoin that says it's backed one-for-one by fiat currencies, released a reserves breakdown for the first time that showed a large portion in unspecified commercial paper.
The company has faced questions over both its reserves and whether it was used to manipulate cryptocurrency prices. Archived from the original on 13 May The Wall Street Journal. Archived from the original on 26 April Retrieved 26 April Archived from the original on 14 October Archived from the original on 20 November Retrieved 20 November New York Times. Archived from the original on 13 June Retrieved 13 June Ars Technica.
Archived from the original on 11 February Retrieved 10 February Wall Street Journal. Archived from the original on 17 August Retrieved 17 August Archived from the original on 2 October Retrieved 3 October Archived from the original on 16 September Retrieved 16 September Archived from the original on 28 September Retrieved 10 March IT Times. Archived from the original on 8 December The New York Times. Archived from the original on 22 November Most folks hate the government monitoring their monies, but there are plenty of cryptos out there that people can choose from.
My opinion is that if there was a cryptocurrency variant of the US dollar, it would take the place of Tether and actually shield the US dollar from inflationary issues as the world switches to cryptocurrency. Food for thought It would make so much sense to me, that Bitfinex goes down one day due to it being replaced by a decentralized exchange, until that day comes there is still a lot of space for it to be exploited.
When talking about crypto I only trust in code, I'm out of any centralized currency! But thats just my opinion! This post was so informative. Gave good insights on bifinex and crptocurrency crash. Bitfinex needs to get audited soon.
We owe you a lot. I have known about tether for quite a while now but haven't actually gotten around to using it before. When I use hitbtc right before a crash all of the money seems to pool into it but I still need to test it out with a smaller amount first.
You may be right on Bitfinex and Tether. I don't see this affecting any of the major cryptos like Bitcoin or Steem. I think it will be viewed as just an isolated event like we have seen when other exchanges have gone down. Don't get me wrong, this kind of thing is never good for the public perception of the crypto market, but it is not a watershed event either. I agree with you that USDT is not a good coin, and the form it is backed is not good. We all need to be smart when investing in cryptocurrency.
I just finished a new post on Bitcoin that I'll upload later on today or tomorrow and I believe due diligence is the key. Thanks, jerrybanfield for another quality post that provides value to your readers. Holy hell what a post!
Thanks for all that info You are a godsend Jerry ;. Very interesting. Thanks for sharing. So what's your verdict on Bitfinex for now? Thanks jerrybanfield for bringing this to our attention. This is very alarming. I believe the US government should just reduce some of its regulation so crypto webpages stop being so nervous when dealing with US clients. Either way, blockchain Revolution is unstoppable, they should just embrace it and evolve with it than trying to make things difficult.
And if there is a crash, I believe it will just be in the short term. Crypto has a lot of room to grow, and of course, steemit too. So scary about that issue.. But instead of that, I will focus my mind in Steemit Great post jerrybanfield. Thanks jerrybanfield! I know you for a couple of days but taking your advice seriously. Bitfinex is horrible but do use Tether to trade on Hitbtc. Its possible to withdraw Tether but wont suggest doing it.
Bless you. A lot of money! A bit scary when transacting such tool. Thank u for this awareness jerrybanfield. I am curious to transact through bitfinex. I've not tried. This article is very helpful for my caucasian friends that are confused until now. Thanks jerrybanfield for this eye opener.
I'll get everything off from Bitfinex. I'll get rid of all the Tether before it's too late because once it's too late, you lose everything or almost everything. I am following your footsteps. Thanks once more. Greetings to you You are a good analyst for the digital currency trading market and the candlestick conversion is very significant And your follow-up to the fluctuations of currencies and your observation of those things is very magnificence and coolness of all this you told us all this..
Greetings to you. Jump on Binance Still trying to understand the idea behind Tether though, whatever it is, it is subject to change. I don't see it pegged at 1 USD for so long. Recently, SBD blew our minds for no obvious reasons. Thanks, jerrybanfield for your insightful posts. I'll keep returning to your blog for more. Congratulations jerrybanfield , this post is the second most rewarded post based on pending payouts in the last 12 hours written by a Superhero or Legend account holder accounts hold greater than Mega Vests.
To see the full list of highest paid posts across all accounts categories, click here. I always enjoy reading your posts because there is a ton of great information in them. I have to admit, I never quite understood why you had to purchase Tether to invest in some exchanges. It's scary to predict what might happen if there is a big crash and how it could affect other exchanges as well This post has been ranked within the top 25 most undervalued posts in the first half of Dec You can also read about some of our methodology, data analysis and technical details in our initial post.
If you are the author and would prefer not to receive these comments, simply reply "Stop" to this comment. Jerry, even by your standards that was a really long and in depth article! This is the only issue at stake right now.
Yes, this me talking with a tinfoil hat on - however, everything is possible. All I can say is have your fiat ready just in case! I too got all they way to the end of this post. Man what a cluster fuck. Using fake money to pump the market! I don't even know where to begin, but I appreciate that you are.
The question one should be asking is if im using bittrex. If one can be able to answer this then we will probably be able to understand we shouldn't actually be using tether which besides its use on those exchange mentioned above there is no any other known use for it and where you do not want to change it to bitcoin on bittrex.
So I had a bunch of coins in Bitfinex, and they may or may not crash, but since they did post that they aren't doing business with US customers, I was able to withdraw my BTC. Still in "processing" on the second withdraw, but since the first one went through I'm assuming it will be good. Yeah i already watch your Youtube video may be it's sad jerrybanfield. Many thanks jerrybanfield for your great article! I have learnt a lot with your analysis. All posts. Newcomers' Community.
Steem Venezuela. Steem POD Team. Comunidad Latina. Explore communities…. The question is, which one is more helpful? Let's look at some of these recent news stories. Now, let's look down, here's a nice little line.
Wait a minute. Tether is traded on by the two main sites, Bittrex and Poloniex. Now, whoa! Hold on. Now, hold on! I'm going to say that again because it's really important. Then, it's all just whatever the market offers for it, and that's a huge problem. Now, it gets even worse, I will show you something else. Out of all the exchanges, Bitfinex is number one and it's largely on imaginary money. Where's the EOS being traded? I wouldn't want to have everything on Bitfinex though. Bitfinex, if they wanted to, could just sit there and double lend.
I'll lend you this. The prices for these could essentially blow up at any moment. I've talked to so many traders that are diversified on things like Bitcoin. I have nothing on Bitfinex. We start trying to protect ourselves. That's sketchy. That's not trustworthy. I love Bitfinex. Don't get it twisted. Until then, I'm calling it like I see it: Bitfinex and Tether's going down. I'm yelling timber, "It's going down! That's my advice.
You saw this for a reason today. You didn't see this by accident. Because I'm already following my own advice. There you go, that's it. I love you. You're awesome. Please, I'd love to see that. I sold everything, and then it went up. Love, Jerry Banfield with edits by gmichelbkk on the transcript from deniskj Shared on: Facebook page with 2,, likes. YouTube channel with , subscribers. Twitter to , followers. Or Let's stay together? Reply Sort: Trending Trending Votes Age.
There won't be any crashes. Mass adoption is beginning. You may be right! Mass adoption needs mass regulation. It will collapse soon, and when it will happen, it will be mtgox x Cryptocurrency Illuminati confirmed They should get audited in the near future. I don't think it will crash, but competition is getting higher.
Tether seed so shady from the beginning and now its much much more obfuscated. SBD has been off of the dollar mark too. Nice update information. Informative details for Bitfinex users. Interesting information, it's time to see what's going to happen. We are lucky to be here. This is the informative content about bitfinex. How could i use th bitfinex? Really nice post Thanks for the heads up.
Scary times ahead for sure. Ty for Information about Bitfinex and Tether. The Tether situation could get nasty. I never believed in Tether. Mmm Tether FUD. So nommy :. Great post. If you do not wish to receive these messages in future, please reply stop to this comment.
Love what u do ,u really put a lot of work on your post ,,,good job man. Good talk. Besides exchange, where else do I use tether to for? What is the wallet for it if i chose to withdraw it and keep where im unable to dispose it?
Bitfinex is the longest-running and most liquid major cryptocurrency exchange. Founded in , it has become the go-to platform for traders & institutional. Bitfitnex to Pay $ Million for Illegal Transactions While Operating Bitfinex Cryptocurrency Trading Platform and Violation of Prior CFTC. Cryptocurrency Tether and crypto exchange Bitfinex will pay $ million to settle civil charges from the U.S. Commodity Futures Trading.