Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

Post by seibelj » Mon, Dec 06, 2021, 12:17 AM UTC

qeternity wrote: post #146

seibelj wrote: post #135

Earlier quoted context omitted.

I worked at Circle. If you think that Jeremy Allaire is going to go to federal prison, you are out of your mind. Their combined in-house plus external legal teams are larger than 95% of the YC startup headcounts. The US government has been all over them for years.

> I worked at Circle. If you think that Jeremy Allaire is going to go to federal prison, you are out of your mind. You're making massive leap in logic. I completely agree with you. Regulators have been absurdly slow to react, and I think that both Circle and Tether will probably end up just fine, at least legally. There may be a cataclysmic breaking of the peg but ultimately it will be retail that gets slaughtered. T…

Post by greyface- » Mon, Dec 06, 2021, 12:21 AM UTC

qeternity wrote: post #168

Why do crypto/Tether critical threads always sink very quickly on HN? This was #2 when I saw it, now it's second page. > Tips on adding JSON output to your CLI app (kellybrazil.com) > 67 points by kbrazil 3 hours ago | flag | hide | 21 comments Current #4 was submitted at the same time, but has 36% of the votes, and 13% of the comment activity. I'm no expert, but that sort of engagement you'd expect to be punching ab…

Post by qeternity » Mon, Dec 06, 2021, 12:25 AM UTC

FDSGSG wrote: post #171

qeternity wrote: post #169

Earlier quoted context omitted.

I am talking about white collar crime, which tends to be much more black and white than terrorism. And no, the government doesn't have a history of spending millions in trying to chase frivolous cases. Has it happened? Sure. But prosecutors are graded on their closure rate which is why you see so many settlements. The last thing they want is to waste millions on a witch hunt. You only see the bad. You say "anyone who…

Tether is obviously the kind of business the government fundamentally doesn't like. Whether or not what they're doing violates any current laws doesn't matter, they are yet another Liberty Reserve enabling large scale money laundering. Even in an imaginary world where Tether is a completely legitimate business not operating in violation of any existing laws, there would be no way for them to make government investiga…

Post by rglullis » Mon, Dec 06, 2021, 12:30 AM UTC

seibelj wrote: post #180

rglullis wrote: post #161

Earlier quoted context omitted.

As someone who worked at Circle, how comfortable would you be if you held a significant percentage of your savings as USDC? Same question, but for USDT, DAI and hard-cash-in-hand?

The risk is not that Circle would lose your money, I am extremely confident in their security and key management. The risk would be that you yourself would lose your key somehow. You are also open to smart contract risk in Uniswap from your other comment, but they also have been around a very long time. I wouldn’t worry about USDC, I would worry about everything surrounding it in the defi ecosystem.

Post by lukestevens » Mon, Dec 06, 2021, 12:43 AM UTC

notjesse wrote: post #155

bb88 wrote: post #127

Earlier quoted context omitted.

Right now I think a good analogy is it's like musical chairs. The game is fine as long as the music is playing. When the music stops, someone's gonna lose big. The problem is when the music stops and there's a run on crypto. People are trying to get out of $USDT and convert it into cash. Exchanges have to have buyers of $USDT so they can exchange $USDT back into cash for anyone that wants to. But they can't just crea…

This makes me think; what if you shorted USDT? There seems to be almost no scenario where USDT becomes more valuable than the USD, and the worst case is it continues to be worth the same. But there is a fair probability it becomes worthless, meaning that you gain from it. While you need to pay premiums in the interim, for something with an indefinite timeframe, that risk seems fairly minor for the potential reward.