Rather than purchasing USDT, I only believe in algorithm proven “stable currencies”
I only believe in the algorithm proven “stable currencies”, and refuse to buy USDT. Take a step back and look at their scheme: Continuous issuing of USDT and using it to exchange other currencies. They suppress the currency prices, make empty profit futures, and profit by the low price stages.
Tether, the company behind USDT, claims that every dollarT issue is backed by a dollar, which means that if a customer transfers a dollar to their bank account, they will issue a USDT. However, reality is never as perfect as liars claim it to be.
According to CCN, Tether issued another $415 million USD worth of tokens in August, and USDT’s market value risen to number 8. Currently, daily trading volume is second only to Bitcoin, which is about $2.6 billion USD per day. Circulation rates are also higher than 90%.
Tether has only stuck to one strategy to grow from the market value of 300,000 US dollars to the current 2.8 billion US dollars; nonstop issuing.
Tether has only stuck to one strategy to grow from the market value of 300,000 US dollars to the current 2.8 billion US dollars; nonstop issuing.
Assuming Tether and Bitfinex wants to control the BTC prices, their power alone is insufficient. (New players are about to join the stage)
In addition to the platform trading we are familiar with, there is another trading method for over-the-counter big orders. Specifically, the buyer and the seller agree to a discount (such as 5%) in several batches of transactions.
For example, for a transaction of about 100,000 Bitcoin, to break the transaction over a few days and under each day’s Bitfinex price of about 5%.
On the first day, 20,000 units are traded. Bitfinex price is 10,000 USD, so the transaction price would be 9,500 USD.
The next day, another 20,000 units are traded, but now the Bitfines price may be 12,000 USD so the trading price is adjusted to 11,400 USD.
So on and so forth until the fifth day the last 20,000 units are traded and the transaction is complete.
The most commonly used escrow agent for OTC Bitcoin is Noble Bank. Similar to Taobao, the buyer contacts Noble first. After the buyer receives the currency, Noble transfers to the seller.
It is worth noting that Tether issued a certificate from the FSS Law Firm some time ago, claiming that there is 1:1 USD in their bank account for their issued USDT. However, Eugene Sullivan, a senior partner at the law firm, is also a consultant to Noble Bank!
On August 22nd, Tether Treasury, one of Tether’s core wallet addresses, transferred a one-time one-way 100 million USDT to Bitfinex wallet addresses.
From August 12 to 22, Tether Treasury transferred a total of 415 million USDT to Bitfinex wallets, accounting for 13.74% of the current total USDT ($3.02 billion). The transfers within the last ten days were all one-way transfers from Tether to Bitfinex, which is consistent with the additional 415 million issued.
(There is still a lot of USDT in Tether’s wallet, it is expected that USDT may continue to be transferred)
Since the 17th, Bitfinex’s cold wallet account has reveived up to 30,165 BTC, and after deduction of out transfers, still has a net gain of 17,369 BTC.
Not only that, but Bitfinex’s ETH wallet account is also swelling. In just 3 days, it has gained a total of 2.6 million ETH! It is worth noting that this account has been heavily funded in the past two months.
The account also increases in value after every market plunge, and Bitfinex’s ETH wealth has crept up to the fifth ranking, reaching an astonishing 1.3 million ETH equivalent to about 2.6 billion RMB!
Will Tether continue to issue USDT? Definitely. The market demand for stable tokens is still increasing. Tether will continue to play the role of the Fed in the currency circle, milking its cash cow of nonstop issuing.
Tether even stated its future in its white paper: to flee!
