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Tether starting to lose its peg too, after Terra did

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Re: Tether starting to lose its peg too, after Terra did

#151

Post by searchableguy »

adhesive_wombat wrote: post #30

The fact that they've been minting billions of tether without collateral should make it abundantly obvious that this isn't a stablecoin and never had been. Anyone can pretend to have a peg in the good times, that doesn't mean there's really a peg or that the peg will remain in bad times. And if you can't count on the peg in bad times, it's not a stablecoin. If you've been honestly working on the assumption that it is…

I believe tether will be back above .99 and stay there at the end of the week.

Free pizza on whoever is wrong.

Re: Tether starting to lose its peg too, after Terra did

#152

Post by spupe »

tluyben2 wrote: post #112
sshine wrote: post #71

Earlier quoted context omitted.

> many poorer and financially illeterate people have been tricked I’m sorry, but it’s worse than that. Whenever I’ve said “Tether is a scam waiting to blow up, and the evidence is obvious”, none of my smart peers had anything to say, either. The BTC price is hells high by this fake USD money printer. At least people are collectively waking up. Brrrr.

The religious (for a lack of better word as it is a religion to believe that cryptocurrencies are inherently better than other assets (outside NFTs) but they do believe that if you read twitter/reddit) people are hodling but all the 'saner' people I know went out in december. There was enough writing on the wall to know that 2022 would not be a good year for some assets (and it's just beginning). Only the real believ…

Yeah, this is the dark side of all this "diamond hands", "to the moon" bullshit. A handful of winners, a majority of losers, and some people going complete bankrupt because they are foolish.

Re: Tether starting to lose its peg too, after Terra did

#153

Post by muhammedbash »

retube wrote: post #114
lozenge wrote: post #53

Earlier quoted context omitted.

"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." Commercial paper is not dollars,…

It's actually much better for tether to be invested in CP and similar paper. You can't leave $80bn in the bank, cos then you have gigantic concentrated credit risk to the bank. It's actually imperative you invest in CP, and preferably, government bills, to diversify your risk.

They don't have to stick the entire $80bn in one bank.

It is the lack of transparency around the CP that is raising eyebrows. Why can't Tether list the papers they are invested in? It is such a simple thing to do.

Could be all their CP holdings are in one company :)

Re: Tether starting to lose its peg too, after Terra did

#154

Post by mytailorisrich »

someotherperson wrote: post #62
adhesive_wombat wrote: post #30

The fact that they've been minting billions of tether without collateral should make it abundantly obvious that this isn't a stablecoin and never had been. Anyone can pretend to have a peg in the good times, that doesn't mean there's really a peg or that the peg will remain in bad times. And if you can't count on the peg in bad times, it's not a stablecoin. If you've been honestly working on the assumption that it is…

> If you've been honestly working on the assumption that it is, then you deserve to lose your (real) money to some crypto VCs on an island somewhere This is victim blaming. Nobody deserves to be exploited, robbed or otherwise for any reason.

If you put your money in some risky 'investment' that you don't fully understand and lose you made a bad decision, you are not a victim.

It's like if you burn your money in a Las Vegas casino.

Re: Tether starting to lose its peg too, after Terra did

#155

Post by hnbad »

tluyben2 wrote: post #112
sshine wrote: post #71

Earlier quoted context omitted.

> many poorer and financially illeterate people have been tricked I’m sorry, but it’s worse than that. Whenever I’ve said “Tether is a scam waiting to blow up, and the evidence is obvious”, none of my smart peers had anything to say, either. The BTC price is hells high by this fake USD money printer. At least people are collectively waking up. Brrrr.

The religious (for a lack of better word as it is a religion to believe that cryptocurrencies are inherently better than other assets (outside NFTs) but they do believe that if you read twitter/reddit) people are hodling but all the 'saner' people I know went out in december. There was enough writing on the wall to know that 2022 would not be a good year for some assets (and it's just beginning). Only the real believ…

You're perfectly describing the sunk cost fallacy. The naifs who overcomitted on a "guaranteed win" investment can't walk back from it because that would mean giving up on a lot (e.g. 50% or more) of their investments, which often as you said isn't money they really had "lying around" (even your retirement fund isn't really disposable once you actually need to retire on it). The failure to achieve the promised growth paradoxically converts them into true believers because they see no way out without admitting they ruined their lives.

A lot of crypto grifters (and even mainstream celebrities) have been actively encouraging these people to sink literally all their capital in coins or NFTs with unrealistic promises and FOMO. They did this because they knew it would work and drive up prices enough for them to be able to cash out by dumping their worthless void money on the unwashed masses.

Re: Tether starting to lose its peg too, after Terra did

#156

Post by imron »

I'm not sure the situation is comparable to Terra.

If you can't read the Y-axis on a graph, and you only look at the last 7 days, then it looks like Tether has gone off a cliff.

If you read the Y-axis you'll see it's barely moved, and if you zoom the graph out, it's barely a blip compared to previous deviations in price.

Now it may well be that Tether is also heading to zero, but it's very different from the Terra fluctuations.

Check the following graphs for both 7 days and all time

0: Tether https://coinmarketcap.com/currencies/tether/

1: Terra https://coinmarketcap.com/currencies/terrausd/

Re: Tether starting to lose its peg too, after Terra did

#157

Post by moritonal »

tluyben2 wrote: post #112
sshine wrote: post #71

Earlier quoted context omitted.

> many poorer and financially illeterate people have been tricked I’m sorry, but it’s worse than that. Whenever I’ve said “Tether is a scam waiting to blow up, and the evidence is obvious”, none of my smart peers had anything to say, either. The BTC price is hells high by this fake USD money printer. At least people are collectively waking up. Brrrr.

The religious (for a lack of better word as it is a religion to believe that cryptocurrencies are inherently better than other assets (outside NFTs) but they do believe that if you read twitter/reddit) people are hodling but all the 'saner' people I know went out in december. There was enough writing on the wall to know that 2022 would not be a good year for some assets (and it's just beginning). Only the real believ…

My issue is that these people are smart, but not "I work at Blackrock as a day-trader smart". In Finance, there are laws against a lot of the easy wins, and now the professionals are entering the Crypto space they're going to run circles around the amateurs.

As in, it's easy to be the best in your local club, but it's a real wake-up call when you try out at a regional.

Re: Tether starting to lose its peg too, after Terra did

#158

Post by th0ma5 »

id wrote: post #143
seydor wrote: post #137

I don't know why i think it is a good thing that these ambivalent coins are being extinguished? It is catharsis to realize that bitcoin cannot be compatible and coexist with legacy fiat systems

It's already back to $1. But sure, every volatility in any shitcoin (even crypto bros make fun of USDT) must mean Bitcoin is being "extinguished".

I agree about your characterization of people announcing the impending death, but it is already back at $0.98

Re: Tether starting to lose its peg too, after Terra did

#159

Post by hnbad »

bmacho wrote: post #149
someotherperson wrote: post #62

Earlier quoted context omitted.

> If you've been honestly working on the assumption that it is, then you deserve to lose your (real) money to some crypto VCs on an island somewhere This is victim blaming. Nobody deserves to be exploited, robbed or otherwise for any reason.

> Nobody deserves to be exploited, robbed or otherwise for any reason. Well they tried to exploit, rob or otherwise me, that is, getting money from thin air without creating any value. How is that fair in any moral system? (That wasn't what GP said tho.)

By that logic they still "deserve" it less than any of the crypto grifters that were able to cash out with orders of magnitude ROIs.

Re: Tether starting to lose its peg too, after Terra did

#160

Post by onion2k »

frozenport wrote: post #66
adhesive_wombat wrote: post #30

The fact that they've been minting billions of tether without collateral should make it abundantly obvious that this isn't a stablecoin and never had been. Anyone can pretend to have a peg in the good times, that doesn't mean there's really a peg or that the peg will remain in bad times. And if you can't count on the peg in bad times, it's not a stablecoin. If you've been honestly working on the assumption that it is…

How are VCs making money? They invested $$$ and the company became insolvent? Don't the investors loose?

VCs don't make all their money from exits. A lot comes from fund management fees. Investing (someone else's) money in a business and then charging 5% from managing that investment is quite lucrative when the values are high enough.
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