371–380 of 976 posts
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> 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.
Sidenote: the actual tulip bulbs were far less silly. They were a productive investment. You could plant them to make more bulbs.
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The billions of dollars of _backing_ should show up somewhere. https://twitter.com/dsquareddigest/status/140291428628503347... > again - who is on the CP desk at Tether? Who is their account manager at Goldman Sachs? Who do they talk to at, say, the GE corporate treasury? Commercial paper is a short term money market that has to be managed and rolled - you can't just buy and hold the bonds anonymously. Dan's argument…
From what I heard, Tether had invested heavily in "emerging markets" instead of the established US markets, which explains why nobody at Goldman Sachs has dealt with them.
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"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,…
> Commercial paper is not dollars, so tether effectively admits it is not backed. What do you think backs bank deposits?
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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…
There are many of him. MANY. See Reddit's "apecoin" subreddit, which had two suicide threats yesterday.
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Apparently you have to bring a minimum of $100K of USDT to get it redeemed into real money. I would say this is an incredibly stupid trade to try because you're relying on Tether actually paying out as promised.
For large players it is 2% instant return, and they just have to be early enough before Tether drops the ball.
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> redeem at Tether for $1 Is the redemption window really open? That's something people have been extremely skeptical of.
Apparently you have to bring a minimum of $100K of USDT to get it redeemed into real money. I would say this is an incredibly stupid trade to try because you're relying on Tether actually paying out as promised.
The entire point of Tether is that you can absolutely trust them with $100K, $1M, $10M, or whatever. It's backed, it's robust, it's tethered, and they guarantee payout. The promise is essentially the AAA security of the crypto world, the equivalent to US Treasury bonds or whatever.
Meanwhile, the sentiment I keep hearing is yours: "You'd have to be absolutely nuts to trust these guys!"
Which is not only diametrically opposed to the picture Tether is trying to paint, but it's saying that AAA is actually a CCC− and hence that there is nothing in the crypto world that's above, oh, I dunno, B- or thereabouts.
But the entire point of Tether hinges on it being perceived as AAA.
Take for example the US dollar treasury bonds. Even countries and people opposed to the United States and everything it stands for agree that it is AAA. People that hate the US agree that the USD is a stable currency and their bonds are secure. Literal enemies, legally at war will prefer to use USD over their own currency for many transactions!
Meanwhile it's hard to find anyone that hasn't apparently drunk crypto Kool-Aid that thinks Tether is anything but a trash fire.
It's just so bizarre...
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…
Btw, not only sovereign nations have these issues. Your bank also tries to maintain a peg between one dollar in its account books and one dollar in government money. Similar (but more roundabout) for things like Amazon gift cards.
For a country without an established, credible central bank a currency board can be a big economic improvement over trying to issue their own native fiat currency.
(Even better from an economic point of view is for the country not to issue a government currency at all, but let the market handle that.
When the government is particularly inept, you can see the (black) market trying to fix currency issues even when the government actively tries to prevent that.)
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The way I understand their business model is: you pay $1 into our bank account, and we'll give you 1 USDT on one of a few chains. We'll invest it in low-risk securities, keep the gains, and give you back $1 for the USDT if you come asking. At least that's the theory, I think they've also been doing lending, it's notoriously shady. But still, a lot of people probably paid them real $ for there to be 78bn Tether. Edit:…
The point I wanted to make is that many (most?) retail customers deposited USD at a CEX like Binance/Bitfinex in exchange for USDT. So your retail fiat dollar didn't go directly to Tether Limited, the exchange bought liquidity from them.