
Tether (USDT) Grappling with Allegations of Noble Bank Insolvency - badge
https://cryptovest.com/news/tether-usdt-grappling-with-allegations-of-noble-bank-insolvency/
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runn1ng
The article wrongly conflates Noble Group - an unrelated Hong Kong company,
trading commodities, with Noble Bank - the actual Tether bank, having rumored
problems.

The Hong Kong financial group - the one that is being bought by Deutsche Bank
- has nothing to do with cryptocurrency. (That means liquidity problems of the
Tether bank cannot be related to commodity trading.)

~~~
Animats
Yes. It's this Noble Bank.[1] "Noble Bank International is a full-reserve bank
providing real-time post-trade services to OTC markets including FX and
Digital Currencies."[1][2]

[1] [https://www.noblebankint.com/](https://www.noblebankint.com/) [2]
[https://www.bloomberg.com/research/stocks/private/snapshot.a...](https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=309500253)

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mcintyre1994
Have Tether ever even provided evidence they have dollar backing like they
claim? I remember they hadn't in the pump last December and I stopped paying
attention after that inevitable pop, so maybe they did at some point.
Otherwise though, it seems pretty irrelevant whether the bank that doesn't
have the money they claim it does has other unrelated money.

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wmf
They've provided "evidence" but there are always plenty of holes, like not
naming what banks they use. If anyone wants to indulge some morbid curiosity,
the latest "not an audit" was [https://tether.to/wp-
content/uploads/2018/06/FSS1JUN18-Accou...](https://tether.to/wp-
content/uploads/2018/06/FSS1JUN18-Account-Snapshot-Statement-
final-15JUN18.pdf)

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csomar
This article is horrible and is just click-bait or trying to induce panic. The
$5m volume on Kraken is peanuts to the size of tethers ($2800m). Not only that
but looking at the chart, it only moved the price by 0.5% and the volume was
not irregular.

~~~
tobltobs
Normal volume can move the price by 0.5% against the underlying?

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csomar
You have to understand the asset being traded and the environment. Kraken fees
are around 0.1-0.2%. So the Market maker is making 0.4-0.6% if there is demand
on USDT after this "dip". That's relatively little profit given the low
volume.

So the market maker must be pretty certain that USDT is fine. Otherwise he'll
demand a premium to offset the risk of holding USDT.

If anything the argument the OP gave suggests that traders have full faith in
USDT.

