Talk:Tether (cryptocurrency)

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Article Mistitled

Tether is NOT a cryptocurrency because it's not based on blockchains, which even by Wikipedia's definition is what a cryptocurrency is. It should be labled "digital currancy."

2601:241:8D81:BBF0:1C8C:985A:379B:4A45 (talk) 23:37, 25 July 2021 (UTC)BeaMyra[reply]

According to the abstract of the Tether "White Paper" (linked in the article), Tether is:

A digital token backed by fiat currency provides individuals and organizations with a robust and decentralized method of exchanging value while using a familiar accounting unit. The innovation of blockchains is an auditable and cryptographically secured global ledger. Asset-backed token issuers and other market participants can take advantage of blockchain technology, along with embedded consensus systems, to transact in familiar, less volatile currencies and assets. In order to maintain accountability and to ensure stability in exchange price, we propose a method to maintain a one-to-one reserve ratio between a cryptocurrency token, called tethers, and its associated real-world asset, fiat currency. This method uses the Bitcoin blockchain, Proof of Reserves, and other audit methods to prove that issued tokens are fully backed and reserved at all times.

(All emphases added.) While of course some of the assertions in the abstract seem laughable given Tether's more recent controversies, it's worth noting that the abstract doesn't actually say that Tether itself is on the blockchain, just that Tether uses the Bitcoin blockchain to prove its backing. Neither does abstract does say that Tether is "cryptographically secured", just that blockchains in general are. However, the abstract does refer to Tether as a "cryptocurrency token", so at least according to Tether Limited, USDT is a "cryptocurrency", whatever that's supposed to imply.

No, I didn't actually read the entire whitepaper, lol. (I'm sure it's more specific in its particular assertions.) But the abstract is either very cleverly or very badly written so as to say almost nothing of substance. It has plenty of buzzwords, though! Some other Wikipedia editor who feels like wasting an hour or so can create a better summary. — IP-69-112-106-230 (talk) 15:29, 31 August 2021 (UTC)[reply]

Investopedia defines Tether as a 'cryptocurrency'.[1] Bloomberg defines Tether as a 'cryptocurrency'.[2] The Financial Times defines Tether as 'cryptocurrency.'[3] Academic research defines Tether as a 'cryptocurrency.'[4][5][6] The Bank of England defines Tether as a 'cryptocurrency asset.'[7] The title of the article is correct. The author who raised this point appears to have partly conceded the point via an admission of not having read the whitepaper. Tether does not operate its own blockchain, but rather functions on numerous blockchains, but it remains a cryptocurrency or cryptocurrency asset. The summary has already been revised to ensure accuracy.

If there are no further objections, can I please request this be formally closed to reduce clutter? Amansaggu26 (talk) 16:30, 26 July 2022 (UTC)[reply]

content moved

I am moving off a large block of duplicate content from the Bitfinex article. I'll put it here in case editors want to use it.

Reporters from Bloomberg, following reports that tether pricing was manipulated on the Kraken exchange, found evidence that these prices were also manipulated. Red flags included small orders moving the price as much as larger orders, and "oddly specific order sizes—many going out to five decimal points, with some repeating frequently." These oddly sized orders might have been used to signal wash trades in automated trading programs, according to New York University Professor Rosa Abrantes-Metz and former Federal Reserve bank examiner Mark Williams.^[1]

A spokesperson for Bitfinex and Tether has said that the CEO of both firms is Jan Ludovicus van der Velde.^[2]^[3] Subpoenas from the U.S. Commodity Futures Trading Commission were sent to both Bitfinex and Tether on December 6, 2017.^[3]

Tether has repeatedly claimed that they would present audits showing that the amount of tethers outstanding are backed one-to-one by U.S. dollars on deposit.^[4] They have failed to do so. A posting on their website in June 2018 showed a report by the law firm Freeh, Sporkin & Sullivan LLP (FSS) which appeared to confirm that the issued tethers were fully backed by dollars. However, FSS stated "FSS is not an accounting firm and did not perform the above review and confirmations using Generally Accepted Accounting Principles," and "The above confirmation of bank and tether balances should not be construed as the results of an audit and were not conducted in accordance with Generally Accepted Auditing Standards."^[5]^[6]

Stuart Hoegner, Tether’s general counsel said "the bottom line is an audit cannot be obtained. The big four firms are anathema to that level of risk. We’ve gone for what we think is the next best thing."^[7]

Research by John M. Griffin and Amin Shams in 2018 suggests that trading associated with increases in the amount of tether and associated trading at Bitfinex account for about half of the price increase in bitcoin in late 2017.^[8]^[9]

References

^ Leising, Matthew; Rojanasakul, Mira; Pogkas, Demetrios; Kochkodin, Brandon (29 June 2018). "Crypto Coin Tether Defies Logic on Kraken's Market, Raising Red Flags". Bloomberg. Retrieved 29 June 2018.
^ "Bitfinex - Team". www.bitfinex.com. Retrieved 2018-02-25.
^ ^a ^b Leising, Matthew (January 30, 2018). "U.S. Regulators Subpoena Crypto Exchange Bitfinex, Tether". Bloomberg. Retrieved February 24, 2018.
^ "Tether". tether.to. Retrieved 23 June 2018. Our reserve holdings are published daily and subject to frequent professional audits.
^ "Thether website under "Proof of Funds"" (PDF). tether.to. Retrieved 23 June 2018.
^ Irrera, Anna (22 June 2018). "Bitfinex chief strategy officer departs". Reuters. Retrieved 23 June 2018.
^ Leising, Matthew (20 June 2018). "Tether Hired Former FBI Director's Law Firm to Vet Finances". Bloomberg. Retrieved 25 June 2018.
^ Griffin, John M.; Shams, Amin (13 June 2018). "Is Bitcoin Really Un-Tethered?". Social Sciences Research Network. Retrieved 13 June 2018.
^ Popper, Nathaniel (13 June 2018). "Bitcoin's Price Was Artificially Inflated Last Year, Researchers Say". New York Times. Retrieved 13 June 2018.

Second paragraph lead

The second paragraph of the lead is currently pretty bad.

there is nothing in the article backing that Tether "consistently lies to the public". Almost all sources cited in the liquidity and security sections are from 2017 or 2018. This is also the period for which the CFTC fined Tether for. Unless there are additional, reliable sources backing these statements for later periods, that's pretty clearly WP:NPOV and should be rephrased to them being controversial, having been criticized for their lack of transparency, etc.

the lead said until my edit just now that Tether was fined for only holding 27.6% of USDT reserves in fiat. That is flat out false and not what the CFTC source cited says. They were fined for only maintaining full reserves for 27.6% of the time from 2016 to 2018. That has nothing to do whether that means they were backing it by 1%, 50%, or 99.9% for the remaining period, and as far as I can tell there is no indication about the actual percentage of backing given by the CFTC in their announcement. I am pretty shocked this misinformation has been literally right at the beginning of the article for months now.

Unless I am missing something and someone disagrees, I would go ahead and rephrase the wording as suggested. 2003:CD:EF1C:6400:3C28:C2F6:D7FF:1385 (talk) 17:27, 20 October 2023 (UTC)[reply]

BDO

According to Tether's website, they have been audited multiple times by BDO Italia, source: https://tether.to/es/transparency/#reports

Is there a reason to not mention that in the article? 2806:264:400:1924:24D8:2748:4C87:3D1F (talk) 07:12, 27 February 2024 (UTC)[reply]

There appears to be a significant number of Non-RS sources throughout the article

I will start going through and replacing/removing where I can, where appropriate will add ^{[citation needed]} ILoveFinance (talk) 04:36, 6 October 2024 (UTC)[reply]

[KrakenTether-1] Leising, Matthew; Rojanasakul, Mira; Pogkas, Demetrios; Kochkodin, Brandon (29 June 2018). "Crypto Coin Tether Defies Logic on Kraken's Market, Raising Red Flags". Bloomberg. Retrieved 29 June 2018.

[2] "Bitfinex - Team". www.bitfinex.com. Retrieved 2018-02-25.

[B22418-3] Leising, Matthew (January 30, 2018). "U.S. Regulators Subpoena Crypto Exchange Bitfinex, Tether". Bloomberg. Retrieved February 24, 2018.

[tethrhome-4] "Tether". tether.to. Retrieved 23 June 2018. Our reserve holdings are published daily and subject to frequent professional audits.

[proofoffunds-5] "Thether website under "Proof of Funds"" (PDF). tether.to. Retrieved 23 June 2018.

[Potterdeparts-6] Irrera, Anna (22 June 2018). "Bitfinex chief strategy officer departs". Reuters. Retrieved 23 June 2018.

[Bloom06202018-7] Leising, Matthew (20 June 2018). "Tether Hired Former FBI Director's Law Firm to Vet Finances". Bloomberg. Retrieved 25 June 2018.

[untethered-8] Griffin, John M.; Shams, Amin (13 June 2018). "Is Bitcoin Really Un-Tethered?". Social Sciences Research Network. Retrieved 13 June 2018.

[Artynyt-9] Popper, Nathaniel (13 June 2018). "Bitcoin's Price Was Artificially Inflated Last Year, Researchers Say". New York Times. Retrieved 13 June 2018.

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