Tuesday, November 21, 2017

Calling it the "Tether Top"

3 hours 20 minutes after my warning about Tether this morning, this happened:


Reddit version here.

Which led to this:


Though this announcement isn't exactly the level of implosion I was expecting, it smells and reeks of a cover up. A "hack" is very reminiscent of the Mt Gox story. As a reminder, Bitfinex got "hacked" in August 2016 and lost 120,000 BTCs. That was valued at $72m back then, but it's worth a whooping $960m now.

I was hoping for something bigger. Like Bitfinex freezing all BTC withdrawals and halting all USDT pairs, or something of that level. Would be nice if Bitconnect can implode together too, drain the swamp in 1 shot. But I guess that's another fantasy for another day.

Anyway the days are long and crypto days pass by even faster. I can totally see the situation getting worse in the near term.

As per my previous post, I advise the following:

1. Do not use Bitfinex.
2. Do not hold any Tethers. If you do, exchange them for something else.
3. Do not keep ANY funds on any exchanges that has USDT parings - they may suffer collateral damage.
4. Familiarize yourself with escape routes - cashing out / stable coins.

Although this doesn't prove that Tethers are worthless, I would say the red flags are everywhere. Proceed with extreme caution.

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