Tether, Untethered | Hodler’s Digest

After 50 years Big Bird is finally retiring,
a graceful dignified exit for a much beloved figure. One bird that may never retire, nor act dignified,
is the albatross around the market’s neck, Tether. Well, this week Tether became untethered,
but the question is will it rise from the ashes like a phoenix, or just get mad and
call everyone a horseface? Also this week, Binance in Uganda, Bitcoin
goes off-grid, and Mike Novogratz says no rally this year! Ladies and gentlemen, welcome to this week’s
Hodler’s Digest. If CoinMarketCap was a murder mystery — a
crypto whodunnit if you will — Tether would be the prime suspect. Nobody knows the location, the weapon, or
the method, yet they are sure of the murderer — it was the stablecoin. But is this so-called stablecoin really guilty
of everything it is accused of, or is the most controversial crypto actually the most
misunderstood? Market manipulation rumors aside, what makes
Tether so controversial is the suspicion that its billions of token issuances are not actually
backed by dollar reserves as they claim — rumors supported by Tether’s sudden break with
their auditor earlier this year.

Although an “unofficial” audit conducted
later attempted to reassure the public of Tether’s honesty, it did little to assuage
its critics (one of whom is so fiery that he has actually been sued by Bitfinex, an
exchange connected with Tether, for his brutal Tether burns on Twitter). Now this week, yet another in a series of
bad news for the stablecoin, Tether appeared to become untethered in what we call: the
great unpegging. On Monday, it dropped to as low as 95 cents,
prompting speculation of a bank run. Elsewhere on Twitter, people had their fun
at Tether’s expense, perhaps most notably Binance CEO, CZ There were even a few contrarians out there
that saw the great unpegging as a good thing: And finally, the Winklevii with a thought-provoking
take on the whole debacle: We spoke to Tone Vays to give us his take
on Tether-untethered. There's the biggest positive from this is
a reminder to people that you are dealing with a risky unregulated space and you really
need to know what you're doing and you can rely on something like Tether to exist a year
from now.

You have to be very diligent. And this ecosystem because something like
this can happen. And it's a good reminder to people not to
get complacent and not to assume that everything is fine. You're always supposed to understand that
holding Tether comes with gigantic risks. I honestly think that Tether should never
trade more than 95 cents on the dollar. Maybe 90 maybe even 90 cents on the dollar. And I think holding together is very risky. And a reminder like this every three to six
months is very healthy for the market because it reminds people how unstable the stable
coins are.

A lot of people misunderstood that Tether
panic into Bitcoin for genuine demand for Bitcoin and reversal of the bear market. I disagree with that view. I think this is just a temporary migration
of capital from because people were not interested in holding Bitcoin because in a bear market. But the asset they were sitting in became
more risky than Bitcoin. I think that once this settles down people
will go back to the position that they had before. I don't see this news reversing the bear market. I'm still I still think that the road the
rest of the year is going to be a little bit harder but eventually we will bottom out and
prices will reverse.

If you are not a fan of the stablecoin or Bitfinex, you might want to check out his Medium page It's a blog dedicated entirely to uncovering alleged fraud committed by Tether and Bitfinex- – check it out purely for the simple reason that Bitfinex tried to sue it out of existence. Next
up in this news roundup, Investment firm Fidelity launches Fidelity Digital Assets — a pretty
important development in the crypto world, even if it’s not the jazziest news item
of the week. Burying through the jargon, the press release
notes that Fidelity Digital Assets will “offer enterprise-quality custody and trade execution
services for digital assets.” The CEO of this new venture believes part
of their mission is making Bitcoin “more accessible to investors.” However, Fidelity Digital Assets is only available
to institutional investors for now, aiming to provide them with (heads up, more jargon)
a: “secure, compliant, and institutional-grade omnibus storage solution for Bitcoin, ether
and other digital assets.” Fidelity is hoping that their pretty substantial
Wall Street credentials — and over $7.2 trillion in client assets — will encourage big institutions
to finally hop on over to the crypto space.

And Fidelity Digital Assets head Tom Jessop
has promised to leverage all “of the resources of a big organization" in order to do so. According to research cited by Fidelity, about
70% of institutional finance executives believe crypto will eventually play a role in the
financial sector, but many remain “sitting on the sidelines.” Jessop and Fidelity hope to change that. Back in June, Binance founder CZ told Cointelegraph
in an exclusive interview about plans to set up shop in Uganda. And this week, CZ’s wish came true, and
the largest international exchange launched a fiat-to-crypto exchange in Africa. If you are a Ugandan interested in crypto,
you can now deposit and withdraw Ugandan Shillings with Binance Uganda. Currently, it is only possible to trade Bitcoin
and Ethereum for fiat, but expect more cryptos to be added in the future.

Earlier this year, the Bank of Uganda issued
a warning to its clients about risks surrounding crypto. However, the government is looking into blockchain
— in spite of its pretty close relationship to the evils of crypto — as a way to tackle
inefficiencies in the public sector. In a Medium post, Binance talked about how
this foray into Uganda was an educational venture as much as a business one. Their CFO, Wei Zhou, believes the exchange
in Uganda will bring “more innovations to the region.” Uganda itself is a very typical or quite representative
of the trend that we’re seeing in Africa, about 60 to 70 million people, predominately
demographics quite young, very technology savvy; information is actually quite transparent.

We’re firm believers in the idea that through
Blockchain and crypto we can help to drive sustainable development in Africa. The value to the average Ugandan is that we
are delivering the freedom of money and the freedom of investment to them. We’re hiring in Africa, we’re looking
for investment partners to join our labs team, we’re hiring in Uganda for operational people
there, so we want to get that message out. While Bitcoin won’t, Nouriel is doing a
hard fork by increasing his block size! After a Senate hearing in which he called
crypto both the mother and father of all scams, it’s safe to say that economist Nouriel
Roubini is off most Hodler’s Christmas card list 'Crypto is the mother or father of all scams and bubbles.' And yet for a man so open to debate, he seems
to have blocked an awful lot of people on Twitter.

So much so, that the hashtag blockedbyNouriel
has become a badge of honor amongst the great and the good of the crypto twitter-verse. To be fair to Nouriel, being open to debate
is one thing, but having to fend off mean tweets by the truckload is something else. Some of those featured on the #blockedbyNouriel
list are quite high profile. Roger Ver for example, and Erik Voorhees was
positively ecstatic about it : Nouriel hasn’t ducked all of his critics,
he has fired back at some.

Although, fortunately for us, sometimes misfiring,
like this exchange with Ari Paul, in which the economist mischaracterized an old interview
that Ari Paul gave about a $50k price prediction. Paul accused Roubini of not even watching
the video he linked to his tweet. Professor Roubini, please do your homework
next time! Tim Draper, Tom Lee, and Mike Novogratz are
so famous for their predictions they could star as the three witches in an off-broadway
production of Macbeth. But unlike the three witches, they tend to
differ wildly on their respective prophecies. Michael Novogratz — one of the three seers
— was more cautious in his predictions this week: “I don’t see us [meaning Bitcoin]
breaking $10,000 by the end of the year.” But don’t worry, this bull isn’t becoming
a bear all of a sudden, he thinks 2019 will see big institutions getting into crypto.

And he’s putting his money where his mouth
is too: Galaxy Investment Partners will become one of the first clients of Fidelity’s new Digital Assets service, which aims to bring crypto accessibility to institutional investors Tom Lee, on the other hand, remains bullish
as ever, sticking to his prediction of Bitcoin to $25K by the end of the year. Everyone entering into the crypto space is
essentially entering into the Wild West, but not everyone actually goes off-grid and into
the wild. Earlier this year, we reported on the developer
Daniel Jones, who claimed to have successfully completed a solar-powered, off-grid crypto
transaction using shortwave radio and blockchain. Last weekend, another developer achieved an
equally, if not more badass task by sending Bitcoin 12.6km away without a cell network
or internet connection.

Impossible you say? Well, we spoke to the guy behind this Bear
Grylls level crypto trading: I'm trying to demonstrate they can work and
just how powerful is. But look where I see the real, myself, where
I see the real value at the moment is either in censorship. Situation with censorship resistance is an
important kind of feature. So you know with its in a war zone or maybe
in a prison or something like that where you know you're not able to get access to a cellular
network for whatever reason. Something like goTenna is an easy to deploy
solution to be out to get from where you are to some internet. Another one is a disaster zone or perhaps
a remote location where the infrastructure has been destroyed or doesn't exist.

Here is some further reading and watching
to see out the rest of your Sunday. Not satisfied with trying to take down crypto,
Roubini puts blockchain in his cross hairs And, in case you didn’t already know, Roger
Ver really really really doesn’t like government, and I mean really. And, as always, like, subscribe, and hodl!.

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