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I don't think it's losing its peg, but who knows... Everything is so crazy right now.
If Tether is backed, then Bitfinex could buy currently-discounted tethers off the market and redeem them for face value, pocketing the difference. The fact this is not happening means they really don't have the money, do they?
If Tether is backed, then Bitfinex could buy currently-discounted tethers off the market and redeem them for face value, pocketing the difference. The fact this is not happening means they really don't have the money, do they?
Sure it's been really stable for a long time now, but might this just be another "bump"?
If Tether is backed, then Bitfinex could buy currently-discounted tethers off the market and redeem them for face value, pocketing the difference. The fact this is not happening means they really don't have the money, do they?
In the short term, this is more of a classic bank-run. The Terra-coin + Luna scared a lot of cryptocoin holders, and now they're running away from another stablecoin.
Even if Bitfinex had the money, the amount of traders leaving USDT has to be a colossal amount. The amount of money Bitfinex can transfer at any given time is limited, so the peg will bend and buckle.
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The big question is: does Bitfinex have enough reserves to weather the storm? Not just this short-term storm, but the whole shebang that's about to happen? We will find out... eventually.
UST / Luna had substantial reserves. But it clearly wasn't enough. Probably because Anchor promised 20% gains and there was simply more UST in existence than the amount of USD put into that system.
If Tether is backed, then Bitfinex could buy currently-discounted tethers off the market and redeem them for face value, pocketing the difference. The fact this is not happening means they really don't have the money, do they?
> @paoloardoino GM Reminder that tether is honouring USDt redemptions at 1$ via http://tether.to . >300M redeemed in last 24h without a sweat drop. 12:38 AM · May 12, 2022·
Going to be a hell of a ride down. Wouldn’t surprise Me to wake up to sub $20k BTC
If Tether massively breaks the peg, there is a non-trivial chance of sub $2k BTC tomorrow
I never saw the use-case for it.
I’d sooner use a faster, cheaper, more energy-efficient, more centralized crypto like XLM or XRP.
But even then: for payments it’s hard to compete with Visa/Mastercard for speed and safety.
And as a store of value all crypto is crazy volatile.
If BTC goes sub $2k, would anybody reasonably want it anymore or would the emperor have no clothes?
If Tether is backed, then Bitfinex could buy currently-discounted tethers off the market and redeem them for face value, pocketing the difference. The fact this is not happening means they really don't have the money, do they?
Practically? Yeah, it's goner.
Earlier quoted context omitted.
If Tether massively breaks the peg, there is a non-trivial chance of sub $2k BTC tomorrow
Or, even more comically, "$"20,000,00 BTC, as people try to escape from a sinking tether.
Community Prediction: 33%
My Prediction: 50%