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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

#181

Post by tluyben2 »

moritonal wrote: post #157
tluyben2 wrote: post #112

Earlier quoted context omitted.

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.

Still, 'smart' is usually not buying at ATH (even a local high) or not having a stop loss if you don't have time to stare at your screen all day and night. I don't know how many people 'woke up' to a 90% dump in terra and were too late to act; that's not smart and you don't have to be blackrock smart for that. This is not exclusive to cryptocurrencies of course; I don't have any, but I do trade other more traditional assets as total amateur.

But yes, I agree with you; they will be taking most the winnings because it's their job. That doesn't mean you cannot make money as an amateur. The real naive people can just send their money directly to the Blackrock bank account; saves a lot of stress.

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

#182

Post by meltedcapacitor »

dragontamer wrote: post #15
jallen_dot_dev wrote: post #4

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, they have the reserves for sure. 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.…

UST had like 10 cents of reserves in other cryptos for every UST. Is that substantial?

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

#184

Post by eudoxus »

5350-uiop-1130 wrote: post #44

Load ze tether fud. I'm no fan of USDT, and don't hold it but the same thing happened in the May 2021 crash. I think it's just the high volume of people selling right now cause it to depeg. I think if it goes too far below you will see the major exchanges go into "maintenance mode" since they're all deeply invested into keeping it alive.

Exactly. Its not even like it "technically" depegged. Just because two ppl on the internet happened to agree to trade it for $0.95 instead of $1 on tether.io doesn't mean its value isn't actually $1.

Mind you, I'm no fan of USDT, obviously not backed by anything but hopes and dreams, but lets at least be accurate when we shit on things :)

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

#186

Post by stevekemp »

outside1234 wrote: post #135
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.

We have been saying it - but have been dismissed as being "anti-crypto"

Yeah it's a tricky one. It seems obvious that "digital money" is going to be very useful in a lot of ways, and in the future is almost certain to appear.

There was a very brief period when bitcoin might have been the start of such a thing. When companies were adding support for it, and people were spending 200+ bitcoin on pizza, actually doing useful things like transferring money internationally, etc.

But these days? It's all speculation, gambling, and HODLing to the moon.

Maybe in the future we'll have a cryptocurrency which is actually usable as a currency, spent, and being in circulation, not being mined and hoarded by people who expect 1000000% returns.

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

#187

Post by eudoxus »

ezzaf wrote: post #99
artdigital wrote: post #37

Anything on any market can shift its price to the red or green. Tether and USDC are just tokens, so if there is enough sell pressure and not enough liquidity, the price on an exchange can jump to something else than $1. They are not fixed at a static $1. It's actually almost never exactly at $1 and the reason why it's immediately pegging back to $1 is because there is an arbitrage opportunity, assuming there is enoug…

The whole point of a stablecoin however is that it is supposed to be... stable. From tether.to: "Tether tokens are referred to as stablecoins because they offer price stability as they are pegged to a fiat currency. This offers traders, merchants and funds a low volatility solution when exiting positions in the market. All Tether tokens are pegged at 1-to-1 with a matching fiat currency (e.g., 1 USD₮ = 1 USD)" $0.95…

"when exiting positions in the market" this statement applies only if you exit using tether.io. You can always (if they have the cash on hand) swap 1 USDT for 1 USD.

They can't make that guarantee for . The reason it stays "mostly" at $1 on exchanges is because arbitragers are incentivized to do so.

But again, 1USDT is ALWAYS 1USD on tether.io.

So yes, the statement you quoted is accurate.

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

#188

Post by lode »

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…

> it is a religion to believe that cryptocurrencies are inherently better than other assets (outside NFTs)

Why would NFTs be worth anything more than the digital tulip bulbs of cryptocurrencies? NFTs are just as worthless IMHO.

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

#189

Post by davidweatherall »

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 don't understand how you bodge a stable coin startup.

Surely you just mint the tokens in exchange for dollars, and then put ~50% of the dollars in zero risk investments (some form of treasury bonds), and then take the 0.5-1% interest per year as your revenue. Tether currently has $81b marketcap so you could be making $400-800m per year doing basically nothing?

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

#190

Post by meltedcapacitor »

krono wrote: post #141
Andrew_nenakhov wrote: post #24

Earlier quoted context omitted.

I don't think they are backed. Too many signs suggesting otherwise.

Are the people in charge of Tether currently moving towards an airport? If so you're probably right

The principals disappeared long ago. The remaining visible faces can claim they did not know what the boss was doing ("I'm just a dev/lawyer").
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