Full article: https://medium.com/@untetheredbtc/how-the-tether-usdt-distribution-system-works-84a5c673bec0
The article is somehow badly written, so here is a short summary:
CryptoCapital - Panamanian Financial services company (launched by HAVELOCKINVESTMENTS) claiming to be a
bankand licensed crypto exchange(the author has proof both are false).
HAVELOCKINVESTMENTS - Announced partnership between Coinapult and Cryptocapital
Coinapult and Cryptocapital are connected through Ira Miller (ex-CEO of Coinapult, also developed Cryptocapital's internal tech)
Where Tethers come into play: Coinapult offers a service known as LOCK where you lock the value in usd of your bitcoins in order to hedge against fluctuations. The Author has evidence and is sure that Coinapult, to "protect" the value in usd of the coins (bitcoins & dash) its LOCK feature users deposit, simply converts them into Tethers but claims instead that deposits are insured by CryptoCapital. The author also notes that Coinapult's Bitcoin price feed is taken from Bitfinex which proves they are converting them into tethers (also run by Bitfinex).
How/Why Tethers are printed: Coinapult offers its LOCK feature to Mycelium and a DASH wallet. People who deposit bitcoins/dash coins with Mycelium and decide to LOCK the value of their investments in USD trigger the issuance of fresh tether tokens (through Coinapult and Cryptocapital). Beware that these people think they are insured by Cryptocapital but all cryptocapital does to insure them is to convert their coins into "Tethers". This makes particular sense if you think that only a couple of weeks ago a bitfinex employee commented in a Tether thread saying "what if tethers are bought with other cryptos".
Coinapult also works with Safello, an exchange with a dozen thousand users, and with DASH wallet(s).
Important Note: The Author points out how Coinapult went from being b2c (business-to-consumer) to a b2b entity (business-to-business) since the release of its lock feature. This means that Coinapult only works with businesses. In other words it offers its service to Safello and Mycelium in bulk, it doesn't deal with users individually.
Roger Ver: The Author is suspicious that Roger knows about Coinapult & CryptoCapital (Roger is an investor in Coinapult), the Tether mechanism used to "LOCK" bitcoin/dash holdings, and converted his 40k BTC into BCH to get out of the loop. The Author thinks so because Kraken (an exchange where Ver was an early investor) did business in the past with the Cryptocapital and because Ver has a stake in Safello so must be aware of the LOCK feature integration. The Author also mentions Roger's "somewhat confused" reaction when asked about Tethers in his recent AMA. In other words, the Author says Roger knows more than he says and this is one of the reasons he got out of bitcoin.
Author's Conclusion: If in a market crash the millionaires using the LOCK feature of Coinapult head over Coinapult to claim the locked value of their investments, they are probably not going to back the initial value (because they have been converted into tethers and not all tethers are backed by usd) but can hope at most to get back the initial coins they deposited. Also this can happen only if the coins have been kept safely in Bitfinex's vaults (bitfinex issues Tethers to Coinapult/Cryptocapital)
bitcoin. Users who like EB32 – Ira Miller & Freya Stevens: Coinapult, Locks and Letting the Bit Drop; Users who reposted EB32 – Ira Miller & Freya Stevens: Coinapult, Locks and Letting the Bit Drop; Playlists containing EB32 – Ira Miller & Freya Stevens: Coinapult, Locks and Letting the Bit Drop But should you have Bitcoin or other cryptocurrencies in your Individual Retirement Account (IRA)? After all, what's not to like since Bitcoin gained some 1,200% last year? Wouldn't that create a Ira Miller, CEO, Coinapult said that his company would begin publishing on the Factom platform at the end of March 2015 after the latter concludes its crowd-sale. The crowd-sale would be launched after the Texas Bitcoin Conference. Peter Kirby added that the sale of the tokens would be open-ended and would run till May 2015. Farias was assisted by Tigo CTM CEO Cindy Zimmerman and the founder of Guldcoin Ira Miller, both technology partners of Cryptobuyer while showcasing the two BTMs installed within the bank premises. The two state-of-the-art machines support both Bitcoin and DASH and were well received as many people in attendance lined up to test the equipment. Bitcoin price fell by 9.8% last week, registering its most significant weekly decline since mid-March. The currency hit a two-week low of $8,630 early Monday, with prices last seen at $8,730—which is down … Read
[index]          
Now that you have a wallet, you probably wish to add some bitcoin to your balance. Here, you will have the ability to easily buy bitcoins with a credit card. You can likewise buy BCH and BTC right ... Some Of Yes, You Can Use An IRA For Bitcoin Investing – Bitcoin Bitcoin was designed with the intent of ending up being a worldwide currency to replace government-issued (fiat) currencies. Overall, the procedure for sending bitcoin is in fact quite simple: Copy the receiver's public Bitcoin address (or scan QR code) Open your wallet and navigate to its "Send out" function, paste the ... Learn How to Buy Bitcoin in Your IRA Interest in Bitcoin is on the rise. But why? Some of the top reasons include the ease to set up, the transparency of transactions, the speed of transactions ... The Only Guide to Bitcoin IRA(TM) Releases New Video Highlighting the Lots of or all of the items featured here are from our partners who compensate us. This may affect which items we discuss and ...