Crypto Prices Dip πŸ“‰ Because Of Tether πŸ’²

on today's episode of the crypto verse crypto prices dipped again because tether has finally got herself into trouble with US regulators and traders got spooked all of that on today's episode of the crypto verse so stay right there hi there guys welcome to the latest episode of the crypto verse your regular dose of news and commentary on Bitcoin cryptocurrencies and block chains I'm your host Chris Coney so let's revisit this descending triangle pan that we've been looking at recently the bottom line here is it's still in play and really I can only see a room for a maximum of seven candles that could possibly fit inside this pattern before something has to give and those patterns so those candles would have to be within a certain range to fit inside the pan otherwise it's going to break so one way or another seven days within a week I'm gonna have to redraw this descending triangle now this pullback from yesterday and the day before to around $10,000 that could have been because of pure technical levels as this consolidation continues however we know there has been some news there's likely spooked the market so let's go and look into that it's tether again the first thing the mayor's spook the market is tether this is a crypto currency that's designed to have a stable value now the purpose of tether is to allow you to move your wealth into a price stable asset without having to go through the pain and the fees of converting it all back into crypto currency or fiat currency rather converting your crypto currency back into fiat currency now it's a very attractive offer which is why you see here in red that three point six billion dollars worth of tether has been traded in the last 24 hours that's a lot when you consider that there are only 2.3 billion dollars of tether in existence and only two billion of them in the circulating supply now this is supposed to work like casino chips not in the sense that you're supposed to gamble with them but in the sense that you put your money on deposit and you're given chips that you can later redeem for the money you put on deposit now tether is actually a company based in Hong Kong so here's the website tether dot – and in their contact post section they say they are a company based out of Hong Kong here it is and they have offices in the USA so scroll down to the bottom click on contact us and you'll see right here tether as a corporation in Hong Kong with us offices in Santa Monica and on the East Coast so say you transfer $100 to tethers bank account they will then issue you with a hundred tether tokens right fit one token for every US dollar you transfer to their bank account now people accept these tether encrypter currency trades because they know they can later surrender those tether tokens to the company and then get the US dollars transferred to their bank account now tether charged 0.1% fee for transacting – and from their bank account so that's how they make money now this all sounds great right but it relies on tether having a minimum of one u.s. dollar in their bank account for every tether token in circulation right you expect in the casino when you go and cash out those chips that they have enough money otherwise that's called breaking the bank right if you take chips to the cashier and a casino and they can't pay out you call it break it you've broken the bank they say right and you've bankrupted the casino anyway but the thing is tether shouldn't be issuing any more tokens than they have in dollars right now their inability to prove this their inability to prove that they have enough dollars backing their tokens it's been an ongoing controversy for more than a year then this news comes out that Friedman LLP which is the accountancy firm that was supposed to be auditing tether they decide to dissolve their working relationship with the tether corporation making the publication of any kind of audits pretty unlikely even if it was unlikely before yet over 2 billion tether tokens continue to circulate around the crypto economy why they haven't all been redeemed for US dollars by now is beyond me what is likely to really spook to the markets though is when bloomberg published an article late yesterday about US regulators sending subpoenas to tether in an attempt to forcibly verify that they are solvent now while these subpoenas were issued on the 6th of December this is only really making the headlines now for some reason and what I've got to say about this is while none of this alters the fundamentals of the crypto currency markets well the amateur investor is easily spooked by any kind of bad news and one of the major appeals about cryptocurrency is that it allows anyone to take control of building their own wealth so there are two sides to every coin the bottom line to this is that I'm not doing anything in response to this news right I've never touched tether never intend to touch it not interested in it whatsoever and like I say this scandal if you want to call it that could just have easily have played out in the old financial markets though the fact that they don't have enough money the fact that they may be insolvent and can't provide adequate audits well that's got nothing to do with cryptocurrency as a concept and everything to do with just bad business right anyway what I am in the process of doing is arranging an interview with rune Kristensen the creator of maked au which has this price stable crypto currency called the Dai Dai which maintains its value excuse me which maintains its value by being backed by ether rather than backed by currency on deposits with a centralized company right don't ask me how it works that's why I'm having Rouen on the show because this could offer the same benefits of tether but in a decentralized way so if you're looking forward to hearing rune talk towards about the dye price stable token on etherium hit the like button and let me know all right guys thanks for joining me today if you liked this episode go ahead and hit the like button and if you're new around here get subscribed if you would like access to my very best material you know what to do head over to my website crypto vesti com click on courses and you can look at any one of the online courses or coming up this weekend I have a live cryptocurrency talk in London and then the following week I have a full one day crypto investing workshop which you can attend in person and I'll teach you in person rather than that I'll be back tomorrow with another episode of the crypto burse until then it's me Chris Kony saying bye for now

33 thoughts on “Crypto Prices Dip πŸ“‰ Because Of Tether πŸ’²”

  1. Stop searching and start learning by taking my structured cryptocurrency courses at:

  2. Yes, we need to learn more about Dai, the decentralized, ETH based, price stable coin which could work after tether gets clobbered by the feds.

  3. Hi there, This audits shoul be applied to the banks as well as banks does not posses even 30% of the money they deal with.

    I think that everyone should ask in what bank is the market cap of 200 billions of dollars of Bitcoin.
    I will tell them. IN NO BANK.
    The market cap in dollars of Bitcoin is only in the imagination of the people.
    So, if all the people wants to cash out their bitcoins there will be a HUGE market CRASH.

  5. Unless every tether holder decides to cash out at the same second, they won't really have a problem, even if they don't have a 1:1. Fractional reserve lending. Doesn't make it OK, just not quite as dangerous as some assume.

  6. Have you considered using the BTC chart from BitcoinWisdom instead of Coinigy, i find it way more precise, drawing charts on Coinigy is a messy affair and price/indicators usually lagway behind the market

  7. History has shown that when prices drop, it is not typically pegged to one thing. Typically, it is many things all coming together. FUD, regulation, technical analysis, holidays (and for that fact, weekends), time of year, FUD, people getting into something they know nothing about, and FUD.

  8. The people who actually use USDT are amateur crypto investors who what 'stability' in the markets. Experienced investors do not use USDT, for a reason.
    Never fall for a scam, even if it has partnered with an exchange. I personally have never used USDT nor will I. And my portfolio is amazing. Just sayin.

  9. Excellent Excellent Excellent! spot on regarding DAI interview. (You should also have a look on TrustToken's TrueUSD, Block Tower is involved, looks promising)

  10. Chris how are you’re buy trades doing that you told us about? I said it was like catching a falling knife. You must have gotten out quick?

  11. "While none of this alters the fundamentals of cryptocurrency…" here, I think it depends on what you mean by fundamentals. In terms of blockchain, consensus, proof of work, and those types of things, you are correct. But if you include supply and demand then it does alter things because IF the manufacturing of these tokens WITHOUT the proper 1:1 backing of USD was done, and then bitcoin's price was artificially propped up by the infusion of that money and careful application of that capital, and the resulting fake bitcoin holdings were then manipulated further to create the roller coaster we are currently on, then a revelation of that info would cause shockwaves on btc price. Even now, speculation that this is the case is causing shockwaves of its own, and doubt is cast on exchanges that use USDT as a result.

  12. Unjustified fear. No reason, other than for Tether holders, should anyone care more about this than they did for BitConnect.

  13. Chris, excellent video as always. I would be keen to hear an interview with Rune from MakerDAO! Really appreciate your efforts to keep us ahead of the market!

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