[deweller]

Tether just opened up a platform for withdrawing fiat USD directly from them:

https://tether.to/tether-reopens-account-verification-and-di...

> This update allows the immediate withdrawal of Tether to fiat (1:1), with the ability to acquire coming soon.

So Tether still backs the USDT 1:1 by fiat while Bitfinex just becomes another trading market. Other exchanges already have USDT markets that change in value.

This event is not the "de-tethering of Tether." It is returning the responsibility of backing USDT to Tether.

[JumpCrisscross]

> Tether still backs the USDT 1:1 by fiat while Bitfinex just becomes another trading market

We don't have any evidence Tether has hard currency backing its Tether. We do know Tether and Bitfinex are under investigation in multiple jurisdictions, and that brokerage deposits are less protected than obligations marketed as being freely redeemable or secured (as Tether was). At the end of the day, Bitfinex and Tether are intrinsically and ambiguously linked, a combination that does not inspire confidence.

[nosuchthing]

Not one person has come forward with proof they've successfully registered with the Tether redemption platform.

Tether does not back 1:1, they charge 3% if you can even register to "redeem" so at best it's 1.00 : 0.97

Also worth noting, Tether has removed any mention of audits on their website:

Current FAQ: https://tether.to/faqs/

  Is Tether transparent?
  Yes. Tether’s platform is built to be fully transparent at all times. 
  Every tether is backed 100% by its original currency.

Archived page (from June): https://web.archive.org/web/20180628141947/https://tether.to...

  Yes. Tether’s platform is built to be fully transparent at all times and is regularly audited.
  Every tether is backed 100% by its original currency.

[jpmattia]

> We don't have any evidence Tether has hard currency backing its Tether.

We have some evidence: The CFTC subpoena was about a year ago, and it is hard to imagine that they would not have

1. Subpoenaed bank statements to support the backing, and

2. Let tether continue operation if the support was lacking.

So it's possible that the CFTC was snookered somehow, but they're not known for being patsies when it comes to obvious fraud.

The investigations for manipulation are more complicated, and it is easy to imagine that it takes a year to iron that out, but a simple balance check? Hard to imagine that's not already complete.

[6nf]

Tether is Hong Kong based and as far as I can tell they don't have any people or infrastructure in the USA so it's going to take much longer for the CFTC to actually do anything here.

[JumpCrisscross]

> CFTC subpoena was about a year ago, and it is hard to imagine that they would not have

These investigations take years, particularly when you have a non-bank regulator like the CFTC trying to get information from foreign banks.

[yashap]

Yeah, last I checked Bitfinex made it incredibly slow and difficult to convert Tether to USD. Like in theory you could do this conversion, but in practice ... not so much. Obviously there was heavy speculation that Tether was a scam. Is this still the case with Tether’s service? Or are they actually allowing easy, practical, quick conversions for whoever wants them?

[arisAlexis]

Tether did prove reserves multiple times, latest one some weeks ago.

[jpatokal]

The market is still paying a 3.2% premium (at time of writing) for actual USD over Tether:

http://www.untether.space/

If Tether's withdrawing platform is for real, that should collapse to ~0%.

[wmf]

It should collapse to the fee to redeem Tethers, which is 3% for whales.

[JumpCrisscross]

> It should collapse to the fee to redeem Tethers, which is 3% for whales

This prices in no margin for Bitfinex delaying or failing to redeem Tether for hard currency.

[blibble]

madoff allowed withdrawals too