Due to the recent DOJ criminal probe into price manipulation by Tether (USDT), things have taken on an extremely serious turn for the entire market.
I cannot stress enough, that if you're fairly new to the crypto market, you should sell your holdings and leave immediately. Millions of people all over the planet have lost huge sums of money in this market, and when it's all said and done and these criminal probes affirm these allegations, this will end up being the biggest ponzi scheme the world has ever seen. It will affect entire economies, and I predict a lot of people will be going to jail over this.
I'll stress again that these are "allegations", but I want you all to understand that so far only the SEC has probed this type of manipulation by Tether. The DOJ has a HIGHER than 90% conviction rate, so when they're stepping in as well, it's NOT without reason.
To sum it up briefly the allegations are that USDT has been used illegally (essentially they printed money out of thin air and used it to artificially buy up Bitcoin without any backing), and this is what they are alleging that caused the surge in market prices leading into 2018 and the hyper deflation afterwards.
Once the SEC was tipped off last year, they investigated. From what I understand, on their audits they would sell their Bitcoin shares that were bought by unfunded (ie digitized) Tether shares to make the books look right at certain periods of the month. Once the books were done, they would pump the market again and repeat.
Guys, where there is smoke there is fire, and when the criminal justice arm of the most powerful country on the planet is probing this (with a 93% conviction rate), there is no longer just smoke... This is fire and we have all been standing in it for years.
As a crypto enthusiast for years, I am walking away from the market because when these probes find the fuse that was lit, this entire market will likely collapse as they will no longer be able to pump the market to make it look better than it ever actually was. The market landscape for crypto currency will no longer be the same as it has been because this is just the tip of the iceberg.
I am strongly urging anyone reading this to exit the market, it is being manipulated. It is not an organic market, you can lose thousands of dollars and get yourself into financial ruin because some a-holes decided to ponzi an entire planet of people thinking that it will not have any consequences. And once the crap show completely hits the fan, it is likely that the markets will react swiftly and there is a potential of a full out crash... Meaning you may not be able to get your money out.
This is pretty dire folks. Please research this for yourself. The market collapsed as soon as it was out that the DOJ is stepping in, and for good reason. There is also concern that entire exchanges were going along with this and were involved, and if that's the case, a lot of people could lose their money because if they were ever forced to close under this amount of scrutiny, you would possibly lose your investments.
This is potentially a world wide ponzi scheme with very huge implications, and I can no longer stay silent about what is really going on. It's pretty much all over the internet and it may not take long for things to break down completely.
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Please read this article, it is in depth about what’s going on and what’s caused the crash.
You guys, I don’t want anyone to think that crypto currencies are the ponzu scheme here.
The ponzi is the PRICING, not the technology or the market.
Kohloe
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>Millions of people all over the planet have lost huge sums of money in this market
Millions? huge sums? :D
Okay huge sums were moved. Gained for some, lost for others.
Besides, Bitcoin is not a ponzi scheme.
Zulu_Kilo
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@Kohloe, I don’t disagree. But let’s not fool ourselves that much more people likely lost money than gained. The majority of the money that flowed into crypto was of the average investor, and the average investor isn’t doing long or short positions like most on here are.
And they are now harshly cracking down on non-US citizens being able to margin trade.
Look at Bitmex really quick and look at the notice they posted last night.
Crap is starting to flow down hill, and the majority of us are downhill...
Persons that are at any time located in or a resident of the United States of America or Québec (Canada) are prohibited from holding positions or entering into contracts at BitMEX.
Persons that are at any time located in or a resident of Cuba, Crimea and Sevastopol, Iran, Syria, North Korea and Sudan, or any other jurisdiction where the services offered by BitMEX are restricted, are prohibited from holding positions or entering into contracts at BitMEX.
BitMEX reserves the right to immediately close the accounts and to liquidate the open positions of persons determined to have breached our Terms of Service.”
Understand that theyve known all along that people from the US were using proxies to show their IP as a different country so they can do the initial registration and then not have to even use a proxy after it... They never ever enforced that policy.
Now, all of a sudden, BAM...
Which means something big is going on behind the scenes.
The only reason you’re hiding from regulation is because you’re doing something shady in the first place.
Binance even made a statement on Tether trying to reassure people about the state of Tether and that it’s a guaranteed asset with cash to back it up.
Well, guess what? That DOES make it a security.
ADD to the fact that Bitfinex (the parent company of Tether) has had to go bank shopping after a major falling out from US, and even foreign banks!
I just urge you guys that have any positions in tether that you think are safe, ITS NOT!
Kohloe
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@zk8619, Thanks!
That happened to bitfinex users as well. Users from the states were excluded.
And to Bittrex, Poloniex and Kraken too if I'm not mistaken.
Bitcoin is 100% transparent, regulations and taxes are coming for sure.
btw I love Monero (other Coin, google it up :))
Zulu_Kilo
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@Kohloe, the problem was never with Bitcoin. The problem was with how it was manipulated by money that was made out of thin air... And the only entity that I know that can get away with that is the government.
Talking about Kraken... Just a few days ago, about 300k Ether was sent over to that exchange from exchanges that directly used Tether.
90% of the coins are great I think, even Ripple and Lumens (even though highly centralized and controlled)... But the problem is that almost any and every trading pair is either linked to Bitcoin or Etherum. And even Ethereum goes up and down when Bitcoin does. Pretty much all the alts are paired to BTC. So the entire market was manipulated by its swings in price.
Did you read the link I provided on my update? If not, make sure and read it so you ge the whole picture of how devastating this is to the entire community and especially the crypto markets...
These prices you’re seeing right now, just like 19k, you will likely never see again.
With margin trading pretty much going away for US residents to be able to short it to make profit... You will just be trading purely into the market and won’t be able to hold a margin call on it going down.
Trust me... Read that article and you’ll see why this is an ELE for the markets as you know them currently.