How EuroTether pumps demand across all exchanges. Since you all keep asking.

  • real coins bought by users using EURT are tradeable to other exchanges, where one is free to get real money in exchange for the coins, and then cash out in real fiat. profits from this can be used to buy more coins, on all exchanges, increasing demand, and leaving a bagholder somewhere with EURT.
  • arbitrage bots, and arbitrage in general, pull all exchanges up as demand lags. it is profitable to buy the cheaper coins (on non-EURT exchanges), and sell them elsewhere (on EURT exchanges), but this also increases demand on the cheaper, non-EURT exchanges for coins. thus, demand increases on all.
  • for a corrupt exchange, it might be possible to credit a real user’s Euro input with EURT, giving the exchange free euro currency to spend, and also said user EURT to spend. this effectively doubles the amount of Euros in play whenever a user swaps Euros for EURT.
  • a corrupt exchange might spend EURT on real coins to then be transferred and cashed out on other exchanges, giving them free real euros to spend as they wish, in addition to the euros deposited in their accounts by users in exchange for EURT.
  • using euros from all the above, a corrupt exchange could amass enough capital to further pump and dump the markets. this would mean that a corrupt exchange could speculate on predictable price movements, guaranteeing profits, that could then be pumped back into various coins.
  • crediting users with EURT on an exchange instead of crediting them with real currency is, i guess, much faster. users who would have been incapacitated waiting, are now able to spend more easily (demand, liquidity increases).
  • crediting a user with EURT instead of euros maintains an exchange’s real fiat reserves, that can then be spent elsewhere or hodld. there is evidence that corrupt exchanges operate on their own exchange, and other exchanges, as recordings held by Bitfinex’ed prove. more euros to spend means more demand for coins, in euros.
  • the above conspires to make the market look very rosy indeed. and people, in the wake of “increased demand” want to get their hands in, and start buying. the fake demand generates real demand, perhaps, and pumps all prices accordingly.

of course this is not sustainable.

since buying and selling of fake assets is going on, demand is actually decreasing as this practice continues (real fiat is being spread thinner and thinner as it is siphoned out the system) — the coins bought with EURT are eventually sold on other exchanges if they are to be “profitable”, in real fiat, i imagine.

what stops this decrease, or implosion, in the short term is real user hype, as people jump on the train to get involved, and further inflate the system with their real fiat.

and, if a pump is hard enough, real users start subsidising the EURT sell offs in other exchanges by putting their real money in. the hype is self-fulfilling.

so, this predicts that demand will spiral downward slowly in pumps and dumps and pumps and dumps, as real fiat leaves the exchanges, and until real money starts going back into the system (perhaps as a result of a pump described above).

all while a corrupt exchange probably slowly siphons the hodlers real fiat out of the system (the strong hands) and leaves a bunch of bag holders in place.

How EuroTether pumps demand across all exchanges. Since you all keep asking.

2 thoughts on “How EuroTether pumps demand across all exchanges. Since you all keep asking.

  1. okisammy says:

    ****
    banished98ti says:

    Yea OP this post is nice and all. Except its full of flaws.

    If people were bidding up coins using EURT or USDT you would have increasingly widening spreads on those exchanges. This happened with Mt.gox back in 2013 where people were using fake dollars that you coulnd’t withdraw and the price discrepency was upwards of 30%.

    Someone has to be selling the coins to the USDT/EURT bidders.

    Miners are the largest source of bitcoin supply. Why would sell for something they cannot spend to pay their bills? Hint. The fucking wouldn’t.

    This analysis is massively flawed. The bitcoin price is set by the monopolist issuer, meaning the miners. There have been record issuance of tethers yet the price is still lower today then before hand. Billions of tethers have been issued and bitcoins price is substantially lower. So where is the pump or price prop up?

    How bitcoin pricing actually works. Some examples.

    Miner offers high supply @ 10k usd. If you want bitcoin, you need to pay 10k usd because they are the only source of quantity.

    Miner sees there are 10million dollars of bids from 8k-10k. They take them all. Price automatically reads 8k(the last sale price). Miners then offer more coins but around 9k. Next bidders are forced to pay 9k for btc. Price now reads 9k.

    Its all about the monopolists on supply. Bitcoin supply is so concentrated that a few players are the only source of supply. Everyone else has table scraps.

    You are either a price setter(miner,early adopter) or a price taker(bagholder). Nothing else.

    ****

    response:

    if people were bidding up coins using EURT or USDT you would have increasingly widening spreads on those exchanges. This happened with Mt.gox back in 2013 where people were using fake dollars that you coulnd’t withdraw and the price discrepency was upwards of 30%.

    do you mean a widening discrepancy between exchanges? arbitrage solves that, quite logically. there were also actual price discrepancies between Euro exchanges and USD exchanges, when the pump was in full force. as seen here:

    and the same for USDT exchanges during a massive crash:

    these tend to manifest in, or be exacerbated by, a huge crash or pump (USDT exchanges inflate bitcoin price, due to the increased demand for coins as people escape, and the increasing weakness of the 1:1 ration of tether as confidence decreases, and people sell tether, for example on Kraken USDT/USD; or during a huge pump, like the EuroTether one the other day).

    and people are selling coins to the USDT/EURT bidders — you can use the USDT you sell your coins for to buy other coins, and then sell those on another exchange, if you need to cash out.

    further, a lot of people don’t believe tethers to be a problem, and have confidence that, if push comes to shove, they will be able to cash out their funbux. they also don’t believe they’ll be a bag holder, even if it is corrupt. there are reasons people still trade in tethers — especially since there is evidence that, in the short term, tethers are “good” for the price of bitcoin (which you want to be high if you’re mining and selling bitcoin).

    they might not be good or true reasons, though.

    Miners are the largest source of bitcoin supply. Why would sell for something they cannot spend to pay their bills? Hint. The fucking wouldn’t.

    i think my analysis covers how it is possible to profit from selling to USDT markets, or, even if they don’t have to sell for USDT, they can sell their coins on exchanges that are eventually traded on tether markets. there’s no reason why that can’t happen: there is no separation between tether markets and non-tether markets.

    This analysis is massively flawed. The bitcoin price is set by the monopolist issuer, meaning the miners. There have been record issuance of tethers yet the price is still lower today then before hand.

    the price should be tanking because there is (or was) little demand for bitcoin. i’m not sure about your analysis here. market demand sets the price. right? like, i can produce all the shitty drawings i like and sell them for whatever price i want, but people still have to buy them for that price, or they’re not worth what i charge.

    so perhaps your analysis, it would seem, is flawed. i can have a monopoly on the market for tulips, for example, but people still need to want my tulips for me to be able to set a price. i have to negotiate the price of tulips with the demand for tulips.

    and, further, there is a market of already circulating tulips that can be traded on and bet against, manipulated, pumped, without any of my price setting taking place.

    There have been record issuance of tethers yet the price is still lower today then before hand.

    record tether issuance has been an attempt to stabalise a deflating price. it works for a short while, but the demand is actually so low, without consumer hype getting involved (as convered in my analysis) that price should be deflationary. “legitimate” demand as induced by a confidence inducing pump, acts to further stabalise the price — though this is not really legitimate demand as it is based on distorted market forces. the thing that induces a pump, though, is fake liquidity, fake euros, and fake dollars.

    all this leaves, as i’ve argued, a bunch of bag holders, who invested on imperfect information.

    Like

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