Anyone Seen Fort Knox's Trillions?
Anyone Seen Tether’s Billions?
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Re: Anyone Seen Tether’s Billions?
#112Earlier quoted context omitted.
Nope, occasionally exchanges will manipulate the price up to liquidate shorts - for instance the highest recorded trade price of USDT was about $1000 and dexes leave you at risk of flashbots and smart contract bugs.
I've held a short position on USDT through AAVE for a couple months now. USDT would have to go to ~2 to liquidate me.
If USDT goes, so does AAVE and everything else. And as has been mentioned, the iFinex crew have squeezed USDT to $1,000 before.
Re: Anyone Seen Tether’s Billions?
#113Earlier quoted context omitted.
Nope, occasionally exchanges will manipulate the price up to liquidate shorts - for instance the highest recorded trade price of USDT was about $1000 and dexes leave you at risk of flashbots and smart contract bugs.
DeFi exchanges operate algorithmically with published smartcontracts, so they can't be deliberately manipulated like that[1] -- can you link the example of the DeFi where USDT traded at $1000? Or were you just equivocating between DeFi and centralized exchanges in response to a comment that specifically suggested DeFi? [1] Which is not to say they can't be manipulated at all, but you'd have to go after the entire mar…
OP is obviously talking about CEX since it’s not possible for a DEX to have a USD market (like the above mentioned USDT/USD).
As for DEXs being manipulated, absolutely not sure why you believe that’s the case? This has nothing to do with DEXs and everything to do with margin (which is coming to DEXs).
DEXs and AMMs make it much more expensive to provide liquidity in terms of capital efficiency versus CEXs, and thus more vulnerable to manipulation. But without margin, there’s not much economic benefit for a bad actor.
Re: Anyone Seen Tether’s Billions?
#114I find it ironic that people seem intent on holding Tether to a much higher standard than banks. I know there are certain legal guarantees applied to banks along with regulations, but all evidence points to Tether being in a much safer position than banks with their tiny fractional reserves. People are dissatisfied with anything less than fully-backed when it comes to 'crypto'.
A bank having assets to only cover 100% of its liabilities would be in violation of banking regulations. Since the 2008 financial crisis, the general breakpoint you're looking for is about 110% as the minimum asset-to-liability ratio for a viable bank. There's also this not-small matter of making sure that banks aren't relying on overly optimistic valuations that won't bear out, especially in a dire market (if you're…
Citation? I don't believe this is the case, I believe a bank needs liquid assets to cover a certain amount of its expenses, not all liabilities?
Re: Anyone Seen Tether’s Billions?
#115The biggest news, buried near the bottom: "After I returned to the U.S., I obtained a document showing a detailed account of Tether Holdings’ reserves. It said they include billions of dollars of short-term loans to large Chinese companies—something money-market funds avoid. And that was before one of the country’s largest property developers, China Evergrande Group, started to collapse. I also learned that Tether ha…
One dollar of Evergrande's debt -- that is, a promise to pay one dollar -- is not worth anywhere near a dollar. So besides the sketchiness of having lots of Chinese company paper on their "asset" books, there's the whole question of how they are valuing said paper. In other words, when they say they have $1 dollar of assets for every $1 of issuance, is the asset an Evergrande promise to pay $1? Or is it an amount of…
They said the debt isn't with Evergrand. That being said, there's no way to verify that, and when Evergrande falls apart it's likely the entire chinese bond market will.
Re: Anyone Seen Tether’s Billions?
#116Earlier quoted context omitted.
So convert the USDC to dollars and withdraw the dollars. Done.
In the event Tether busts, the entire crypto markets will freeze up, and it’s plausible usdc will not be redeemable or face a run. USDC aren’t dollars and have been opaque about their backing. The bulk of their assets are in “cash and cash equivalents” which sound good, except they include less than 90 day commercial paper here! They also don’t state its quality or say how much of their cash/equivalents are CP rather…
Yeah but where do they run to? I could see dark money having to run into BTC and ETH because real dollar redemption is a problem if you operate out of China for example.
Re: Anyone Seen Tether’s Billions?
#117"Solana, up 9,801% in 2021 for seemingly no reason at all" No reason at all, huh? Anybody with even a remote interest in crypto knows why Solana has exploded. It's L1 season and Solana is a direct competitor to ETH, which suffers from high usage fees. Every other L1 has exploded in value. As said, L1 season. These kind of statements make me suspect the author never used crypto in their life. The cultural gap between…
> Nobody cares. Because they have nothing to lose anyway and will just start over. Because the underlying economic issues did not change.
If crypto was only these people, I'd have more sympathy for them. But in reality, it's some of those people, and then tons of far more sophisticated people who are trying to take advantage of the rubes. In the end, the Tether people will make out like bandits, and everyone else will be left holding the bag. It's like justifying Madoff because of the desperation of elderly people to extend their savings.
Re: Anyone Seen Tether’s Billions?
#118"Solana, up 9,801% in 2021 for seemingly no reason at all" No reason at all, huh? Anybody with even a remote interest in crypto knows why Solana has exploded. It's L1 season and Solana is a direct competitor to ETH, which suffers from high usage fees. Every other L1 has exploded in value. As said, L1 season. These kind of statements make me suspect the author never used crypto in their life. The cultural gap between…
I'll bite. What can I use Solana for?
AS someone who has seen his friends for years toute crypto, but never bitten.. i did this year. (those friends have passive incomes in the 10k's per month now in crypto that can be readily exchanged for dollars)
Parallel economies exist. In the mainstream economy, your mainstream interests have every aspect of the market cornered. You only get in once they have taken all the worthwhile positions.
In the crypto economy, and yes, its a fully fledged economy and social network in 1, u can get in on the ground level and ride that hype up. You dont have to know that guy at that investment firm with that connection to that hot deal.
DeFi and the blockchain are allowing you to startup international companies in the blink of eye. Just the way traditional companies outsourced to the 3rd world, then import these goods and sell to a premium in local markets - as a crypto enterprenour u can now employ these same "call centre staff" (who were layed off in covid) to "play games for you" and you are able to pay them a HIGHER RATE then Apple or insert any any "tradtional stock" "traditional company". in phillipines for instance, you can get loans against SLP, u never need fiat. You can pay for goods at corners stores with SLP. micro-transactions in e-sports is legit and it will only get bigger.
People forget that captialists have BUILT a system and REINFORCED that system to ensure THE STATUS QUO. Crypto is about giving those people the FINGER. Those people kicked and screamed, but now they are ON BOARD. Bloomberg isnt as effective at causing a dip then say Elon though. Tether, like the real-estate markets all over the world, couldnt handle a big sell off. Covid showed that.
Sorry Bloomberg, your consoles days of cornering the market as gone! Your traders now need to keep there ear to the crypto ground, cause the crypto cultists are using there social networks to come for YOU. They can organise millions of bids in minutes. Your incumbents are not the only people who can pump and dump on retail investors. Tether is simply using tactics established by centralised finance. They poineered the China hustle years ago. https://en.wikipedia.org/wiki/The_China_Hustle
Lets stop pretending that the traditional stock market is built on fair and sound princples. Lets stop pretending that bankers get held to the same accountability as the ordaniary folks. These tradtionalists are incumberant in every aspect of the mainstream socio-poltical life. Like, the whole stock section of the nightly news is just as a way placate the general public and further there position and ideaology. One that preys on moms and pops and superannuation schemes.
Re: Anyone Seen Tether’s Billions?
#119Any guesses why this post is flagged and not visible on the HN home page?
Plenty of cryptocurrency enthusiasts read HN, and some might flag negative press.
Re: Anyone Seen Tether’s Billions?
#120LOL !
"The chief financial officer is Giancarlo Devasini, a former plastic surgeon from Italy who was once described on Tether’s website as the founder of a successful electronics business.
The only reference to him that turned up in a search of Italian newspapers showed he was once fined for selling counterfeit Microsoft software.
Elsewhere on the website, there’s a letter from an accounting firm stating that Tether has the reserves to back its coins, along with a pie chart showing that about $30 billion of its dollar holdings are invested in commercial paper—short-term loans to corporations. That would make Tether the seventh-largest holder of such debt, right up there with Charles Schwab and Vanguard Group.
To fact-check this claim, a few colleagues and I canvassed Wall Street traders to see if any had seen Tether buying anything. No one had. “It’s a small market with a lot of people who know each other,” said Deborah Cunningham, chief investment officer of global money markets at Federated Hermes, an asset management company in Pittsburgh. “If there were a new entrant, it would be usually very obvious.”"
https://www.bloomberg.com/news/features/2021-10-07/crypto-my...