this is very useful news for us steemit users, thank you very much @davidpakman

Well interesting post friend, I learned to learn things I did not know thanks

The one way I could see Tether as being legit is if every time someone traded for a newly printed tether the traded coin was converted to USD. That would make sense. However, the transaction fees would lead to a slightly lesser value of USD being held.

Ugh tether was a joke from the start the amount of crap people fall for astounds me. Use some basic skills and knowledge and do some research first! I'm glad I never got involved with this nor bitconnect.

Got my full upvote and resteemed, great content.

"Tether has currently turned off most forms of redeeming USDT into USD directly into a bank account." 
When exactly did they do this, do you have any source for this?

What do you think of the possibility that Bitfinex CEO who is also the CEO of Tether (at least according to Cointelegraph) is using funds from Bitfinex to back Tether? 

Or at the very least Bitfinex could send funds to Tether bank accounts to fill them with USD equivalent of the Tether market. Bitfinex likely has billions in funds if e.g. Coincheck can somehow pay out 400M USD to their users after the hack.

👍 DP for timely Tether ♨  All OK w proper credit line to cover mass liq, but that conflicts with Decentral ideals.  Counterpoint just create Tether out of thin air and then use this counterfeit to Pump Crypto? Some work to do before Lambo owners team with Bentley owners  but masses pray for relief from Evil Banker Yellon who owns their Chevys 🤕

No matter how high the market cap is, Tether has proven time and time again that it will always maintain its one dollar price point. If it goes down, maybe it goes to 0.99 but if it goes up, maybe 1.01 or 1.03, but thats as far as it goes. A flat line in the marketcap indeed. Its good to have money on it if you are some one that wants to ensure you get little to no losses but nor will you have gains so I prefer just hodling my coins. Nice post! Upvoted!

I have been suspecting that bitfinex..I don't trust It..just like the the tbc..thanks for the news

With fees, Tether are actually making a ton of money every day, right?  This is the part that I'm most interested in reading about, but can't find much info on it anywhere.

Thanks for sharing your thoughts from the newsletter over here on Steemit for us all to read.

Davidpakman: Good content, I think Tether is a pump and dump. They are not concrete or transparent. Not a good project in my opinion. Thanks for posting this. Im going to follow you, feel free to return the favor. I post very similar content. Lets grow this steemit community!

wow...that's really nice jobe@davidpoakman 
.. i really like your post...  thanks for sharing post

![27067711_10155478449777852_312615316409309302_n.jpg](https://steemitimages.com/DQmez1BkLcGpBioMfGiik8SyMNhER5CC86Lrn3daNkwevHP/27067711_10155478449777852_312615316409309302_n.jpg)

Thank you! I've been calling BS on tether for a couple months now, and found articles going back to early last year breaking down the lack of financials, secrecy of the company, and showing how the # in circulation was so closely correlated to the growth in price of BTC.

I feel 100% confident that it's a scam. When it pops, the market is going to take quite a beating.

Here's theory that seems likely to me. What if this company  is holding crypto that's worth what they claim to have in usd and they're doing a lot of mining. Mining other crypto is how they print tether woth the same amount in usd.

I first saw Tether when I signed up for Binance. It looks good, to be honest. The ability to quickly go to a stable token on an exchange without having to sell to USD makes sense. But all of the news trouble behind Tether also makes sense to me. I don't really know what opinion to have. For right now, I'll continue using it on Binance. But if it disappears one day, then I'll know why.

The way I see it right now, with what everyone is saying about it, it literally looks like how Bitconnect was before it crashed. People were having the same of conversation towards Bitconnect as they now have towards Tether. It's like a thicking bomb at this point. I would urge anyone who has some money in tether to not have it in tether... It is too risky at the moment.

How anyone is willing to take the chance with placing their money in tether, instead of for example bitUSD, is beyond me.

Allow me to recommend this excellent write-up about bitUSD by @cob:

>BitUSD is both pegged to the USD and decentralized in nature.
No counterparty risk.
Audited by default by a non-corruptible blockchain.
Finally has volume - which was the old issue with it.
Anyone can issue if they wish

https://steemit.com/bitshares/@cob/the-iron-is-hot-for-bitshares-a-look-into-bitusd

i'm new to beginner, i want to ask about SBD is it down and up so fast like bitcoin ??

My thought is that it is good that a regulator intervene as they have not been transparent enough with the concept of tether. Tether is not a bad concept if done responsibly and transparently; it is very similar to money market funds which serve as short term investments for investors "parking" cash in the short term. If something is not being done right with investor money, then it should come to light so that investors can make informed decisions with their money. I personally avoid USDT and rather have the money in fiat or one of the bigger cryptos like BTC, BCH, LTC or ETH. I also have these positions in hardware wallets to protect me from the exchanges.

Everytime market goes down, scarying news are reveal about tether, just like if there was no safe heaven in the crypto land... long live eth for now ;-)

Tether's market cap isn't that much in the big scheme of things. Why do people say that its downfall will be the start of the downfall of all cryptos?

Just in: "U.S. Regulators Subpoena Crypto Exchange Bitfinex, Tether" - https://www.bloomberg.com/news/articles/2018-01-30/crypto-exchange-bitfinex-tether-said-to-get-subpoenaed-by-cftc

Don't trust Tether at all.
More news: "Tether Severs Ties With Its Auditor, Leaving Its Accounts Shrouded in Mystery" - https://cryptocoingrowth.com/2018/01/30/tether-severs-ties-with-its-auditor-leaving-its-accounts-shrouded-in-mystery/

davidpackman: resteemited, this is a dangerous thing a people have yo know that is not safe to have holdings in usdt, if you want to sell high and buy low you should get out to fiat, period.

This was very interesting, thanks for the post David.

thanks for sharing this cryptographic news...

Really a very volatile currency will go up or down
Investing in it has become difficult

I have really mixed feeling about Cyptocurrency. Back in 2010 I found out about bitcoin and was really excited. Not Necessarily that it would replace transactions but because it was a great way to pay people under the radar for black market goods. Unfortunately that is all it was for back then and by the time and wasn't interested. Eventually more things became available on deepweb markets that I may have wanted. By then BTC was to expensive and I was paying off student loans and couldn't afford it.

Next thing you know, investors started acting like 18th century dutch tulip investors. and it is going to burst so hard. My buddy @duerstthewuerst posted a video of him when he went to a mining farm in Milwaukee (https://steemit.com/bitcoin/@duerstthewuerst/72xguv65) Just ONE of the servers cost 150 bucks in power a month. I have a rather large refrigerator that costs 75USD per year. I did the math  (don't remember too lazy for the farm and it was absurd.

Even with BTC ups and downs if it continued this way it will be consuming somewhere around half the worlds energy in a couple of years. It is too a head of it's time.

It's impossible for tether to mimic USD because the value of the coin is based off the sells and for the to have that kind of money would mean that they would have to sell if not all of there shares if not more so you know tether is bullshit

There's been some speculation about Tether for a while now. Hopefully this doesn't turn out like this Bitconnect fiasco. The old adage of not investing more than you can afford to lose definitely applies. Maybe that's not the case, but it does make you wonder how sound this is.

Wooooh! Tether could end up being another scam like bitconnect.

Thanks for this cryptocurrency news update providing..... i appreciate this blog. i wait your next post, best of luck my dear friend.....

So it would be pretty safe to say i should withdraw all my funds out of bitfinex? Which exchange do you recommend?