Bitfinex looks like it's been defrauding people in this tether Ponzi scheme. It's by far the largest exchange with double the daily volume of the next biggest. If it's dead, my guess is that bitcoin goes down below $1000. Their comment that they dissolved their relationship with their auditor because the auditor was too picky.... Fuuuuuuuuck.
Yes. And I have news for you -- bitcoin is a Ponzi scheme too. So are all the altcoins. Doesn't mean one can't make money, but don't cry if the thing collapses and you're bought in.
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Why is tether a ponzi scheme? You literally cannot make money off it by definition since its tied to US dollar.
Except it's not tied to the USD. The company that owns both Bitfinex AND tether had been creating tether out of thin air, backed by NOTHING, using it to buy Bitcoin, then selling the Bitcoin for real USD elsewhere. The notion that it was ever tied to the USD was a fairy tale used to defraud people. This fraud pumped Bitcoin up to 15k, then dumped it for real USD. This is also why the market is crashing as the fraudsters have pulled out and are in the process of getting caught. My guess is that they and their money are relocating to some banana republic without extradition.
It may be fraudulent but I don't see how tether is a ponzi scheme.
Awwww cute. Fun with decentralized currency