Published on Jan 28, 2018

Tether is a cryptocurrency designed to be pegged to the USD in a 1-to-1 ratio. Doubts about whether or not this is true have been floating around for months now, but Tether mostly left the news cycle since the $30m hack back in November. However, it’s back in full force now as their relationship with their auditor recently dissolved. Is this the end for Tether? Steemit Post:… Nobody knows, and the reality is that establishing a time-line of such an event is near impossible. However, what we do know is that Tether has been increasing the rate at which they print money. Most of the crypto community is cautious about it even if they use it, suggestings its public perception isn’t the highest. They’ve have many issues with banking – What do you think the odds are that serious individuals and businesses have increasing demand for Tether which matches the rate at which they are being created? Even if Tether ISN’T a scam though, they have massive regulatory risk. The primary function of Tether is to bypass regulations and capital controls that exchanges face with using the real USD or other fiat currencies. As they grow larger and larger, Tether will paint a bigger and bigger target on their heads and eventually the US government or another government will likely take action against them. However, I still suspect Tether is a scam either way as it looks and behaves like one. When Tether retailiates against the accusations made against them by Bitfinexed, they sound like children rather than professionals (a characteristic I have seen as particularly common in the crypto space). The dissolvement of their relationship with their auditor suggests the auditor found details that Tether wasn’t comfortable with revealing. If it looks like a duck, acts like a duck, walks like a duck and quacks like a duck, it’s probably a duck. It is highly probable Tether is a scam and if it is well interconnected with Bitfinex as many suspect, then this poses a huge systemic and systematic risk to cryptocurrencies as a whole. Keep a close eye and be cautious. Thanks for watching / reading! ================ If you like my content, you can support me through using ANY of the affiliate links below (I receive small compensation). The beauty of affiliate links is that I can pick and choose what I like rather than have companies approach me – everything I linked below (with the exception of Trezor since I like Ledger), I use myself frequently. ================ My Recommended Hardware Wallets: Ledger Nano S: Trezor: Ledger Blue (expensive): ================ My Favorite Book for Investing in Crypto: Cryptoassets: This book is, bar none, my favorite book for investing in cryptocurrencies. It doesn’t bog you down with technical jargon, but instead focuses on all the elements you should understand before you invest. It’s a comprehensive book for both beginners and experts. Beginners will find information about major cryptocurrencies (not just Bitcoin) as well as details on historical market events (that you can draw on for future) and events to watch for moving into the future. Experts will find the chapters on valuation particularly useful. For those of you involved in traditional investing, this book is even more of a godsend as finance info is explored (correlations with other asset classes, ETFs, etc). ================ My Recommended Exchanges: Coinbase / GDAX / Bittrex… If you sign up to Coinbase using link above, you and I will both receive $10 each after you buy your first $100 of Bitcoin using Coinbase. Coinbase is much less intimidating for beginners. Once ready, move up to GDAX for cheaper or zero fees. For altcoins, I recommend Bittrex. ================ Legal Stuff: I am a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for me to earn fees by linking to and affiliated sites. None of what I provide in my videos is investment advice. Please do your own due diligence. ================ My Platforms: Twitter: SteemIt: Medium: Seeking Alpha:…
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In the words of one of the most inspirational men I’ve ever heard: DATSA SCAAAM!!! End of video includes why I’ve been absent recently. Come interact with me on Steemit: Also will TRY posting once a day on Twitter just so I don’t disappear from social media entirely during times like these:

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Viral Killer
Tetherconnect!!! wasa wasa wasa wasa
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Been telling everyone this for a long time and just getting angry FUD remarks in return…
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Erick Alden

Even if it really was pegged to USD on 1:1 ratio, that would still make it rampantly inflationary. lol

Smart Crypto Trader Club

Tether is like paper money backed up by Words only ?

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Chinonso Charles


I clicked this video with the speed of light


Sam E

If I could short tether I would 100%



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Smart Crypto Trader Club


That’s why Bitcoin Price in USDT is Going Crazy ?

Sutekh's Crypto

Tether is great when there is a flash crash or huge Bitcoin selloff as a place holder. Idk why anyone would actually HODL Tether though doesn’t make sense. It’s not a “store” to me, as you say. But a simple escrow medium.

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Benji's Boxing Channel


Good video. Never bought Tether never will.

Mr Omar
Tether is not a scam, bitfinex have enough money to back it enough at least at a higher ratio than the fractional reserve. Yes most likely the ratio is not 1:1. But it probably is higher than 1:10. The only way Tether will collapse is if everyone decide to get their money out at the same time, now here’s the thing, you’re fine with having fiat instead of USDT, yet fiat has the same issue but worse, and actually, we had historical cases where run up to the banks made the economy collapse, several times. Yes I know, Fiat is not comparable to USDT, but I’m talking about the argument, if not having 1:1 ratio is a scam, then most fiats are giganstic scams. Here is the scoop, american banks have been practicing even lower ratio than the permitted 1:10 fractional reserve, they have used up to 1:100… Now since we shouldn’t compare the real worlds versus crypto markets, let’s talk about crypto. Do you know another threat that is being ignored by people who feel confident with their fiat on coinbase and such, ever thought about what would happen if the same scenario you portray for tether (massive fund transfer) would happen to fiat exchanges? Do you think Kraken has the funds to make every crypto millionaire an actual millionaire? Do you think coinbase and kraken have billions in funds when everyone decide to cash out at the same time? People paid a neo for a 10 USD equivalent (BTC) on Kraken, do you think Kraken has enough money to allow the same guy to cash out for 150, 15x time what Kraken actually received in fiat? Now think that through when you think your BTC or Coinbase account will allow you to cash out when there is a crisis. Tether is in the same situation as banks or crypto fiat exchanges, if one of them fall, it will be for the reason I explained, and there is no reason to think either of these three is safer than the other if that was to happen.
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This video provided not a single argument besides ” I think it’s scam “

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DLC 5 Confirmed
Our Satoshi, who art in Heaven. Bitcoin be thy name. Your miners come. Your blockchain be done, in Altcoins as it is in Ethereum. Give us our Lambos and daily bull runs and forgive us our Fud, as we forgive those who panic sell against us. And lead us not into Fomo but deliver us from Fiat. For Crypto is the Kingdom and the Power. Forever and Ever Amen ETH 0xac44b180de72e506bf33dafb17d30620bd4cc345 BTC 1F73u4V8t6h6Lpc58MfacMFSDgpCzGRKje LTC LY4vuJ2uwZDxPTiksVGJjWpUZ8rnTcWZCT
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WOW. Reading the comments is like a deja vu. I watched his bitconnect video and majority of the comment back then were about how he doesn’t know jack shit and that he does’t prove anything. I went back to that same video and watched the comment all over again. I will do the same when tether’s shit hits the fan I will probably get popcorn or some shit. some people are thick in the brain. lol


You are too negative. As a way of moving fiat into crypto Tether is excellent. As long as my $ for $ is honored buying crypto to trade with who cares? It’s no more insecure than any mined crypto. Think deeper. Just who’s getting scammed? When I use them to buy crypto I not longer have them, and now hold assets made of digital algorythums. No security issues there! Not backed by anything. At least it was paid for with (printed unbacked) dollars. The gubmint has had unbacked digital dollars for years. Not every serial number group has an actual set of $100 bills printed.
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Crypto Investor English 4KMINING

That’s a great video, but I would appreciate more facts and less “ducktales”.


Thomas Shellberg

Why you got Tai Lopez ads before your vids

Most exchanges don’t have fiat. Therefore you need Tether as a safe harbour when the market goes into crash mode.
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Alex Smith
The only coin that has volume higher than market cap is Tether. There is real demand for it, and a lot of people are using it. Check If you want to call it a scam/time-bomb/fraud and all that shit, then please provide evidence. Otherwise, you are just another parrot of FUD articles. I’m not saying that Tether is 100% legit, but you are acting as if it is 100% fraud (or that it will 100% fall) when you don’t have a single evidence to back that up. Compare its volume in October to November to December 2017 to January 2018.. The volume is growing in all exchanges, the demand for Tether is growing, so it does make sense that its having all this “tether printing”
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Bit By Bit
Regarding Tether, so many people are calling it a scam. I think it is a bit overdramatic to call it scam. Bitconnect is a scam, it was created so they eventually could exit scam. I think tether is a way for exchanges to bypass regulations, to allow smooth transfer from crypto to “fiat”. It is not exactly a scam, exchanges just want that functionality. Whether is it sustainable is however very questionable.


Bitconnect guy: ITS A SCAMM XDDDDDDD

Based on this video I’d say you don’t really know what you’re talking about. Sound like one of those know it all dudes who love the sound of their own voice.
Christopher St.Louis
Dude. The coin market cap is over 500 billion. Bitfinex is 1.2B and tether is a couple billion. That shouldn’t shake the market man.

That’s why USDT is paired with six crypto coins in Binance for example. The pairings include BTC, LTC, ETH, etc. You never convert Fiat currency to USDT directly. That’s why it isn’t illegal. Delusional dude.


3Travis van der Font

Couldn’t agree more! I’ve said the same thing since the beginning, and truly, I don’t even understand how this “currency” is still being used by people. Thank you for this video. SPREAD!

Bill Addison

Tether have updated their terms and conditions to make them legally bound to issue dollars for Tether for legally verified Tether customers. Presumably Tether-based exchanges like Bittrex are such customers? As the biggest exchange in the world, and apparent owner of Tether, one would think Bitfinex have the funds to back Tether, whether it’s 2 billion or 10 billion, they’re a highly profitable company as per any major crypto exchange currently. If you consider they’re funding Tether to other major Tether-based exchanges like possibly Bittrex, Binance etc. then 100 million dollars isn’t such a large issuance. Of course, I’m just as concerned as everyone else and if this comes to a head, it will be devastating to the market.
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I don’t see the ticking bomb. iFinex always had issues with traditional banking and regulations. Tether particularly is on a grey zone, but it’s needed in the crypto space. The auditing problems are related as well to regulations and the issues that financial innovation brings to auditing. Also, some people claim that Tether is running a “fractional reserve” system. If you understand that a fractional reserve system is any system that doesn’t hold instant 100% liquidity, it’s obvious that Tether is doing “fractional reserve”. That’s finance 101. The important aspect is not that, it’s about how liquid their reserves are. Most probably, Tether is using their funds for financing margin positions in BFX and maybe providing credit facilities to other exchanges. As long as they hold a good amount of instant liquidity and financing is short term (in BFX is 2 to 30days, that’s considered “cash equivalent” in classic accounting) they are fine.
Oldřich Peslar
Wow. You managed to spend 15 minutes arguing it is a scam yet you did not explain WHY! OMG

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My question to you Crypto Investor do you really understand Tether? If not how can you opine on Tether with credence? Well you can’t treat credence as if it were ipso facto truth. Doing so is nothing but FUD. All your BS is:  I think I think I think mixed with hyperbole.  Did you check some of the sources behind the Tether nonsense? Joe Carey (The Daily Express) on the 28th published a scathe on Tether and a possible Crypto collapse citing an “ANONYMOUS ANALYST”  hahahahahahaha MEDIA BIAS/FACT CHECK says The Daily Express is biased to conservative right wing ideals and uses wording that attempts to influence an audience by using appeal to emotion or stereotypes. Publish misleading  reports and omit reporting of information that may damage conservative causes. Some sources in this category may be untrustworthy.
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mqwer sadgfa
Man people always need a resource for fud i think. Once they are out of news, they put tether on the table. Anyone who knows economics, knows, that 2bn tether in a growing 600bn+ market, is far away from being a bomb. In the long run, yes i agree.
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Mehr Licht
I don’t get it. Isn’t Tether just a debit payment provider, just with the difference that a customer has access to his fiat assets via a crypto-token? Why do you always mention Bitfinex? They have only 3% of the Tether volume. And why should a $2B token have any effect on a $600B market?
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Jake McLeod
This guy did not even explain the fucking issue. You can tell he does not completely understand the situation because he is dissapointed in bitfinex for using tether, YET THE SAME PEOPLE THAT OWN TETHER ALSO OWN BITFINEX
Red Pill
The USD isn’t back by anything.
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Jose Duarte
You again and again prove to me you know what you talk about… YOU, yes, YOU saved me, in December I had 4 friends that did show mw how much they were making in Bitconnect, and I was all ready to get in, I even register and all, but then I decided to watch videos, so many nice videos about, but then I saw your talking about why you did think it was not a good idea… after a short while we all know what happened. There is so many people talking about crypto, and I am totally new, and one f them , did make a good point about having Tether, but then I saw this video and I did listen to you, as I did remember what you spoke about Bitconnect, so I did NOT buy tether… man, TWICE you saved me, you that never met me, made me stop and think about it, nowI trust you even more. Sure what I have to invest it is peanuts for most of the people, but it is a lot for me, and I really want to say thanks to you.

Perma Bull

I think it’s FUD. Surely all of those exchanges using USDT bought the USDT for USD. That’s where the 2bil came from.
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Ben Smith
I disagree. If Tether is backed by Bitfinex, which at its lowest has a $1 billion trading volume per day – $2 million min revenue a day, Tether might just be a liquid and solvent company. Yes, they have probably taken a knock recently and do not have the cash reserves to give every single Tether holder their USD, but I don’t think their liabilities overshadow their assets, which makes it a safe investment if regulation is not taken into account – But regulation counts for all cryptos.
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