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Anyone Seen Tether’s Billions?

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Re: Anyone Seen Tether’s Billions?

#311

Post by dustintrex »

drfxyjhdyfrhgc wrote: post #296
dustintrex wrote: post #291

Earlier quoted context omitted.

Would you gamble your entire investment on that? If Tether collapses, there will be major outflows from all stablecoins, and we'll find out which ones have been swimming naked.

I would. I'd wager Tether's collapse would cause inflows to other stablecoins. It's also worth noting that smart contract based stablecoins, such as DAI, are incapable of being under-collateralized.

But the collateral is also in crypto! Tether is a systemic risk: if the peg breaks and there's a run, every cryptocurrency will suffer in fiat terms.

Re: Anyone Seen Tether’s Billions?

#312

Post by qeternity »

anonymoushn wrote: post #270
qeternity wrote: post #112

Earlier quoted context omitted.

If USDT goes, so does AAVE and everything else. And as has been mentioned, the iFinex crew have squeezed USDT to $1,000 before.

Can you cite this? I have seen some pictures of Kraken wicks but not liquidations on Aave and not trades on FTX USDT quarterly futures above $1.10 or whatever.

You’ve just cited it. I never said they squeezed in all places. They squeezed it where there was sufficient short interest: Kraken.

Re: Anyone Seen Tether’s Billions?

#313

Post by sydthrowaway »

jcpham2 wrote: post #236
qeternity wrote: post #167

Earlier quoted context omitted.

Career hedge fund trader for the trading stuff. Twitter for the Tether stuff (Bitfinexd, Bennett Tomlin, Cas Piancey, Doomberg, David Gerard, and a few others).

I never knew one of Trendons minions copied Bitcoinica and started BitFinex, thanks HN I sat in chat rooms with most of these crazy fucknuts a decade ago and that is frightening. Fun re reading old court transcripts yay

Hm, so they got rich and you didn't?

Re: Anyone Seen Tether’s Billions?

#314

Post by dustintrex »

CryptoPunk wrote: post #257
dustintrex wrote: post #245

Earlier quoted context omitted.

August 2021: https://beincrypto.com/coinbase-drops-guarantee-of-usdc-stab... SEC subpoena literally yesterday: https://coingeek.com/usdc-issuer-circle-financial-subpoenaed...

The August 2021 change seems to be in response to a disclosure, that revealed more about USDC, than had been known in the past. This is a move toward more transarency and accuracy, not in USDC becoming less backed. And CoinGeek is a notoriously anti-decentralization media outlet. It's a mouthpiece for BSV, whose founder, Craig Wright, has called for anonymity to be abolished in cryptocurrencies, and for miners who pr…

Did you just call a SEC subpoena FUD?

Re: Anyone Seen Tether’s Billions?

#315

Post by dustintrex »

anonymoushn wrote: post #304
dustintrex wrote: post #280

Earlier quoted context omitted.

Because the fiat valuations of ETH, DAI, USDC and all coins will tank if Tether implodes.

Why? USDC is backed by dollars and treasuries...

Not anymore it isn't, and they've admitted it:

https://beincrypto.com/coinbase-drops-guarantee-of-usdc-stab...

Re: Anyone Seen Tether’s Billions?

#316

Post by raducu »

redisman wrote: post #266
jimmydorry wrote: post #227

Earlier quoted context omitted.

The part I have never seen elaborated on in the "Tether is a Ponzi" claims is at what point will people using Tether make money? Tethers are IOUs to facilitate moving USD between financial institutions (mainly between exchanges, and mostly used by the exchanges themselves). You can spend $1 USD to get 1 Tether that is "redeemable" (by trade, not through the Tether company) for exactly $1 USD. A Ponzi requires some ki…

It’s not a ponzi per se. My guess is that they take the money from exchanges, mint more tokens at no cost to themselves and buy a bunch of junk bonds with high yields and pocket the 8% or whatever they make in those. Given their market cap that is a lot of money. They always use precise wording about their holdings “commercial paper”. I’m guessing it’s not US treasury bonds equivalents or they would say that explicit…

It is a ponzi/illegal bank scheme the moment they mint more tokens than they have liquid assets.

Could they come clean, will there be a bank/USDT run?

Depends of how much USDT real clients hold and how much USD they hold, and how likely it is that EVERYONE wants to convert USDT back to USD -- it would take a very catastrophic collapse of cryptos for that to happen.

USDT has intrinsic value for money laundering, so even if all other cryptos would go to 0, not everyone would want their USDT converted to cash.

While I don't like USDT, and I don't think that's the case --someone printing USDT could have already amassed a great fortune, and if he was benevolent enough, could probably redeem all USDT of all the real people holding USDT.

Re: Anyone Seen Tether’s Billions?

#317

Post by anonymoushn »

qeternity wrote: post #312
anonymoushn wrote: post #270

Earlier quoted context omitted.

Can you cite this? I have seen some pictures of Kraken wicks but not liquidations on Aave and not trades on FTX USDT quarterly futures above $1.10 or whatever.

You’ve just cited it. I never said they squeezed in all places. They squeezed it where there was sufficient short interest: Kraken.

I haven't just cited it! I said I saw a screenshot. I don't have a date or whatever, but if someone has a date then I can download the ticks from that day and check it out.

Without a date I can't compare the short interest at Kraken to e.g. the $100,000,000 OI in USD-settled USDT futures at FTX today.

Re: Anyone Seen Tether’s Billions?

#318

Post by anonymoushn »

dustintrex wrote: post #315
anonymoushn wrote: post #304

Earlier quoted context omitted.

Why? USDC is backed by dollars and treasuries...

Not anymore it isn't, and they've admitted it: https://beincrypto.com/coinbase-drops-guarantee-of-usdc-stab...

I wrote that it was backed by dollars and treasuries. You wrote that it wasn't backed solely by dollars. So we agree.

Re: Anyone Seen Tether’s Billions?

#319

Post by arcticbull »

qeternity wrote: post #264
quickthrowman wrote: post #201

Earlier quoted context omitted.

I’m not buying any 4550Cs. You do understand my original comment chain was talking about a complete tether collapse where it has 0 value and not just a temporary dip in price.. right? Go read arcticbull’s comment about 6 levels up, that’s the scenario I was referring to in my comment. I’ve traded both ES and SPX options so you can stop quizzing me about them. By the way, minimum price tick on ES options is .25 (which…

> You do understand my original comment chain was talking about a complete tether collapse where it has 0 value and not just a temporary dip in price. Ok, and? If USDT is worthless, you expect market makers to continue to be willing to hold it? You seem upset that an MM would wouldn’t bid > 0 for something with ev = 0. I’m not sure what you actually expect here. A Tether collapse is exactly the sort of moments that m…

Separately from all this, there are SPX options, they're cash-settled European index options (for those on the sidelines American options can be exercised any time up to expiry, European only on the day of expiry) with a $100/tick notional contract value. They're super useful if you want to trade indices (as compared to say SPY options) because you don't have to deal with dividend-triggered exercise risk and they offer 60% long term capital gains tax treatment no matter how long you hold them for (like futures and futures options). [1]

[edit] They do trade under various tickers depending on the exchange though, so maybe that's some of the confusion? Btw, not trying to explain it to you in particular, just to passers-by.

[1] https://www.optionistics.com/quotes/stock-option-chains/SPX

Re: Anyone Seen Tether’s Billions?

#320

Post by imtringued »

nrb wrote: post #256
dboreham wrote: post #215

Earlier quoted context omitted.

Curious. Is that true? I ask because I read papers on digital cash years before Bitcoin and never saw any reference to financial system instability. It was just "being able to send money digitally like cash would be useful and cool", perhaps with a bit of "banks and western union are bandits with their fees". I always thought the alternative financial system stuff was added later to make the scene more interesting to…

Included in the coinbase parameter of the genesis block of Bitcoin is the following message: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”

Bitcoin doesn't eliminate the need for bailouts. It doesn't even do lending, at least nobody is crazy enough to borrow something that is going up in value.
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