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Tether: Biggest Scam of Cryptocurrency?

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According to cybersecurity expert and the cryptocurrency critics, it has been announced that the prices of Bitcoin are manipulated by the USDT or Tether.

Understanding the drawbacks and limitations of Tether.

 

What is Tether coin? and Why is it considered a scam?

Elementally, as we all know that Tether is one of the pre-eminent cryptocurrency stable coin, whose value is pegged to that of the US dollars. This, in simple words, jots down that 1 USD = 1 USDT. It is also one of the most speculative ones for mixed reasons. Below are some of them.

1. The company backing Tether, Tether Limited, claims to secure the stability of the Tether coins, through the actual USD reserves, but not even a single auditing firm has confirmed the same, recently. Even the supply of the tokens keeps on increasing on a regular basis. Therefore, speculations are always on the higher side of the spectrum, when it comes to the legitimacy of the Tether coin.

2. Many cryptocurrency experts speculate that Tether is a fraud, as it is not considered as a legal tender. This has indirectly rendered the Crypto enthusiast to point at the legal status and transparency of the Blockchain project.

3. According to most of the cybersecurity expert and the cryptocurrency critics, it has been announced that the prices of Bitcoin are manipulated by the USDT or the Tether coin. It is assumed that Tethers are only minted during the Bitcoin price fall, in order to stabilize the cryptocurrency market and is not backed completely by millions of Fiat Reserves. Even the most popular economist, Nouriel Roubini believes the same.

4. Reddit is one of the most popular cryptocurrency discussion forum. On this website, when users wanted to gain opinion regarding the previous experience of any user, for the conversion of the Tether coins into the actual US dollars. A deafening silence was looming over the post, which certain pointed to the opacity of the cryptocurrency coin.

5. According to the company’s website, officially, no guarantee is provided for the redemption or any kind of losses that the users incur. Indirectly, the user is the only responsible person, for all of these actions with respect to the Tether coin.

6. Also, according to the company’s terms of services, the Tether tokens redemption can be rejected without any mention of exclusive reason. This is a major issue with respect to the open legal documents, as they do not care to mention the circumstances in which they would do so.

7. There are also a number of instances which point towards the fraudulent nature of Tether coins. As in January 2018, the Tether coin Blockchain platform withdrew its collaboration with a third party auditing firm from Taiwan.

8. The Tether coin Blockchain platform is also estimated to switch many auditing firms of different countries.

9. Bitfinex is the Cryptocurrency Exchange, which is constantly speculated to be a part of the Tether coin fraud, as many pre-eminent figures from Bitfinex had represented Tether during its initiation. Due to its connections with Bitfinex, it is even rumored that Tether coins are used for margin lending on Bitfinex, in an illegal manner.

10. It is important to know that the Crypto exchanges make profits from the interest, from the lent Tether coins. This is highly ridiculous, as Tether Limited, do not provide a guaranteed for the redemption of Tether coins with the actual Fiat currency.

 

The positive side of the Tether coin

A myriad of Crypto exchanges like Binance, Bitfinex, Poloniex, etc have incorporated Tether instead of the actual US dollars, as incorporating USD would require many legal procedures to be followed by the exchanges. Therefore, Tether effectively eliminates the legal intervention of the government. Adding on to the upper hand, they even provide higher transaction speeds when compared to that of the Fiat currency. Therefore, it is also used as an alternative to the US dollars.

#Scam

Lawsuit filed against DJ Khaled and Floyd Mayweather in Centra Tech Scam

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DJ Khaleda and Floyd Mayweather have been hit with a lawsuit from individuals who say that the stars were a part of an illegal cryptocurrency scam.

DJ Khaled and Floyd Mayweather have been hit with a lawsuit from individuals who say that the stars were a part of an illegal cryptocurrency scam that screwed investors out of millions of Genuine dollars.

The coin at the focal point of the outrage is called Centra Tech – and, as indicated by the legal lawsuit, Floyd Mayweather and DJ Khaled were influential celebrity endorsers who promoted the virtual cash on social media.

 

Actually, social media posts from Floyd urged individuals to purchase the coin and he said he was so energized in regards to it, “You can call me Floyd ‘Crypto’ Mayweather now.”

 


DJ Khaled called the company a “game changer.”

The issue … the Securities and Exchange Commission says the company behind the coin was working illegally, deceptive investors and cases a few of the executives recorded on the company website don’t generally exist.

Centra Tech raised $32 million in maneuvering amid the initial coin offering in 2017 … much obliged, to some degree, to the celeb supports … the lawsuit claims.

The founders of the company were arrested back in April and are dealing with a few indictments including securities fraud, wire fraud, and some conspiracy charges.

In the suit, investors are pursuing the company founders and the celeb endorsers for fraud – and they’re trying to recover their millions of dollars in addition to harms.

One intriguing note from the lawsuit – investors say the estimation of the coin has dived over the previous year. It was worth generally $1 per coin in February and after the arrests in April, it’s dropped to under $0.02 per coin.

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#Exchange

Yobit Pump and Dump Scheme: Everything you need to know

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Yobit buys various random coins for a certain amount of Bitcoin and immediately after pumping up to a certain price, the process of dumping is initiated.

Grasping the entire Yobit pump and dump scheme.

 

Secret market manipulators

The Bitcoin domain which is originally initiated with clean intentions in mind, was also, not spared by the hackers and scammers on this world. This is self-evident from various hacks and scams that have been witnessed in the Crypto space. Therefore, all the investors and cryptocurrency users are cautioned to carefully understand and practice safety measures. Failing to do so, might lead to unwanted conditions. There are also various secret Bitcoin holders known as Bitcoin Whales, which manipulate the bitcoin market by either buying or selling a large amount of Bitcoin.

 

Yobit Exchange

Yobit is one of the most popular cryptocurrency exchanges, which, in recent days, has been struggling for its market sustainment and is trying to incorporate various measures to tackle the same. While other cryptocurrency exchanges attract customers through various incentives like reward programs, lower transaction fees or increased security measures but yobit has taken the marketing gimmicks to a next level. Yobit openly announced about its pump and dump scheme that it undertakes, in order to boost the trading activities in the cryptocurrency markets.

 

The recent Yobit pump and dump

During the pump, Yobit buys various random coins for a certain amount of Bitcoin and immediately after pumping up to a certain price, the process of dumping is initiated creating artificial waves of the price. Some investors and traders use make use of the market volatility during this time period. This method of generating artificial traffic is regarded as illegal in most countries across the world. Yet Yobit pump and dump scheme seems to be working out very well. Yobit had also pre-announced one of its pump and dump activity which was undertaken on 11th October 2018.  

 

Other activities of Yobit

Yobit has also been under controversies for many other reasons. Back in 2016, Yobit trading platform had pre-released the Waves/BTC trading pair, without the actual release of coins. The Crypto exchange has a very good record for its manipulative activities. The US Commodity Futures And Trading Commission along with US Department of Justice has charged legal implications on the exchange for such activities.

In 2017, even the Russian government banned the operations of Yobit, for possible frauds and data manipulation undertaken within its name.  

 

The reaction of followers on Twitter

The Yobit pump and dump schemes are openly announced on Twitter, where various users have expressed their distaste with respect to Yobit, for such shady activities. Some of them, in fact, have approached Coinmarketcap to delist the because of its intolerable activities. While some of the users are furious with the action, some of them consider it to be as a joke. There are also users which assume that at least, they are being transparent about their bad intentions. It is now the decision of the various regulators to classify them under suitable category and take necessary actions. Failing to do so, might lead to immense losses to the users of Yobit.

 

Further insights into Yobit pump and dump scheme

The crucial matter of concern is that Yobit never announces the name of the coin which is to be considered for its Yobit pump and dump scheme. By chance, if the investors get to know the coin which is to fluctuate, then they might have a good return, accordingly. On October 10th, 2018, the exchange revealed that they will be buying various Altcoins worth 10 Bitcoin in every 5 to 10 minutes.

 

A sincere advice to distance yourself from such activities

Investments in the cryptocurrency market are very risky as some of the cryptocurrency exchanges themselves are not reliable enough to be considered. Therefore, one must hold the entire responsibility for their investments and think twice before choosing a cryptocurrency exchange for trading and investing in any digital asset or cryptocurrency.

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#Bitcoin

Mt Gox Deadline Chaos: Users taking flights to Tokyo for refunds

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The biggest civil rehabilitation in history: Mt Gox is presently to begin tomorrow after the deadline for filing civil rehabilitation claims passes.

Mt Gox Civil Rehabilitation

The biggest civil rehabilitation in history: Mt Gox is presently to begin tomorrow after the October 22nd deadline for filing civil rehabilitation claims passes.

The process has been somewhat tumultuous. After filing for insolvency claims in 2015, numerous through Kraken, they are currently being asked to file again for civil rehabilitation.

The Issue with the refund process

The problem is these year old events have been forgotten by most. Online logins and passwords are not remembered. Few even know exactly what online logging, the one for Mt Gox, the one for the insolvency claim, or something else.

Plenty of people have been forced to file by post because, for reasons unknown, you can not e-mail the PDF application to the now revived [email protected]. So a surge is on for some and this is transforming into a nightmare for some people.

People are advised to not go in person because imagine if thousands of people suddenly appear at the Mt Gox offices in Tokyo to put their paper application through the letterbox. Yet Nobuaki Kobayashi, the Mt Gox Rehabilitation Trustee, says in an email:

“On the off chance that you file a proof of claim by the Offline Method, please make sure that the proof of rehabilitation claim must be received by the Office of the Rehabilitation Trustee before the end of the period for filing rehabilitation claims (i.e., no later than October 22, 2018 (Japan time).”

 

What is the Process

A simple reading of that suggests the post needs to arrive at their offices by circa 5 PM Japan time on the 22nd of October. The same number of applications are made from everywhere throughout the world, however, it may be very hard to guarantee a delivery by that day.

Logically you’d figure they will consider all applications dated prior to October 22nd as having been filed inside the deadline, yet sometimes logic and law don’t fit, so bureaucracy may get in transit.

In that case, it might be that all post that was received after the 22nd may have to re-file again through a late claims process. In spite of the fact that who knows, perhaps the presence of mind will prevail.

Once every one of these applications is made and processed, Kobayashi will then have to distribute to tens of thousands of goxers $1.5 billion worth of dollars and crypto, with $500 million of it in fiat and about $1 billion of it in 140,000 BTC and 140,000 BCH.

 

Kraken comes into the picture

It is probably every one of these funds will be distributed through Kraken, meaning that all goxers may have to join with them on the off chance that they haven’t done so already. Kraken stated:

“We are working with the rehabilitation Trustee to provide payout support for Kraken clients. On October 5, 2018, Kraken executed a memorandum agreement with the rehabilitation Trustee regarding future support from Kraken. However, the details of Kraken’s support have not yet been determined.”

How quick they move currently remains to be seen, yet nearly five years since liquidation was declared, this case may have now reached the stage where just last touches are needed for circulation.

 

The Scenario

Kobayashi has sold $500 million worth of BTC and BCH. That is the fiat value measure of all cryptos and fiat holdings on MT Gox at the time of liquidation with one BTC fixed at a price of circa $400.

In other words, if Mt Gox had not been bankrupt at that time, it would have needed just $500 million to pay every one of its customers all they were due.

That means $1 billion is in profits. That has been retained in BTC and BCH, with individuals free to choose whether they need it back in crypto or in fiat.

Then there’s another $250 million worth of bitcoin and bitcoin cash which has been converted into fiat and is kind of ring-fenced to cover claims or counterclaims Mt Gox had with other businesses that are disputed and are kind of unrelated to the insolvency.

So everything is at long last in place now for this $1.5 billion to be given back. When remains to be seen. This year looks unlikely as they make last preparations, yet around the beginning of 2019 may seem probable.

How the market would be affected remains to be seen. Most have completely written off these Mt Gox holdings, yet now that it would appear that they may really receive 3x the fiat sum they thought they lost, some may get excited and should seriously think about it as a nice reward.

What they will do with it nobody knows. There are some 10,000 individuals involved, so some may need the fiat, some may keep on holding. Some who receive fiat may transform it into crypto.

Making it perhaps a cheerful ending to a terrible series of events as now after years of forced holdings many are in profit and by quite a bit.

So bringing up that issue again of whether history will consider MT Gox as the devil, or perhaps after all as the angel that bootstrapped the bitcoin economy when few were eager to do as such or to keep doing as such for whatever length of time that they did.

Something which may depend on how this dispersion progresses, with a considerable lot of an entire generation presently experiencing a genuinely unique process that makes this whole crypto scene simply that bit more exciting.

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