Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Tether starting to lose its peg too, after Terra did

community.intercoin.org

Post reply on HN
Print view View original

441–450 of 976 posts

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

#441

Post by piva00 »

ulzeraj wrote: post #382
pmyteh wrote: post #344

Earlier quoted context omitted.

If you live in a country with an unstable currency but without strong capital controls, the upside can be had by holding dollars . And that comes without the risk that your known-to-be-a-bit-dodgy nearly-dollar collapses.

That's a rare situation. The first thing a government does when their economy starts to colapse is to force the population to use and save in their dying currency while restricting access to foreign currency to prevent capital flight. Just look at Russia and Argentina.

Argentina has a pretty strong black market of USD, capital controls there didn't stop people from hoarding dollars as a stable currency.

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

#443

Post by xur17 »

h2odragon wrote: post #421
mwill wrote: post #191

Earlier quoted context omitted.

Do people in crypto sincerely believe Tether is backed? I'm not being sarcastic here, I'm genuinely asking. I'm a bit of a skeptic of how the crypto market has developed overall, and the intentions of the major players, so I keep reminding myself that I'm biased, but I haven't believed Tether is even remotely close to being fully backed for a long while, and I've just sort of assumed everyone who's 'bought in' to the…

There are people "in crypto" who believe the FDIC will make good any losses on their investments; which they hold because "crypto can't be controlled or monitored by governments!" I'm expecting the talking heads to have to spend time on "why there won't be a bitcoin bailout" today or tomorrow.

> There are people "in crypto" who believe the FDIC will make good any losses on their investments

Do you have a source for this? I'm heavily involved "in crypto", and have not seen any indications of beliefs like this.

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

#444

Post by vkou »

DebtDeflation wrote: post #404
iso1210 wrote: post #258

Earlier quoted context omitted.

It's the greater fool theory. I lauched at friends of my fatherinlaw back in 2018 when they were buying bitcoin at 15k. Obviously it popped. Today it's down 50% on ATH, but it's still more than double it's 2018 bubble level.

We will almost certainly see pre-2017 prices at some point.

The problem is that you can't convince the faithful that it's going to happen in their lifetime.

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

#445

Post by nailk »

pmyteh wrote: post #344
ulzeraj wrote: post #329

Earlier quoted context omitted.

> Remember, with a stablecoin, there is no upside to holding. As always people around here tend to see the world from their point of privilege. If you are in Turkey, Sudan or Venezuela right now there is a huge upside in holding a stable coin pegged to the dollar. Only 13% of the world population is lucky enough to live on a stable democracy with a stable economic system.

If you live in a country with an unstable currency but without strong capital controls, the upside can be had by holding dollars . And that comes without the risk that your known-to-be-a-bit-dodgy nearly-dollar collapses.

> the upside can be had by holding dollars

Unless your bank kicks you out by some reason (incompetent compliance). Unless foreign bank refuses your transaction because the bank doesn’t like the color of your passport. Unless somehow banking system wants to cut extra from your transaction (2.5-4% for transaction) because of double currency conversion you didn’t ask for, because you didn’t specify correct correspondent bank and your bank didn’t tell you about that.

All that happened.

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

#446

Post by Lifelarper »

mwill wrote: post #191
thematrixturtle wrote: post #76

It's hard to overemphasize how big a deal the Tether peg breaking would be (is?). At $78B, it dwarfs UST/Terra, and it's supposed to be an asset-backed stablecoin, not a risky algorithmic boondoggle like UST. If Tether plunges, it will take the broader crypto markets with it. Emphasis on the "supposed to be", since many, many, many unanswered questions have been raised about Tether's reserves and they've previously b…

Do people in crypto sincerely believe Tether is backed? I'm not being sarcastic here, I'm genuinely asking. I'm a bit of a skeptic of how the crypto market has developed overall, and the intentions of the major players, so I keep reminding myself that I'm biased, but I haven't believed Tether is even remotely close to being fully backed for a long while, and I've just sort of assumed everyone who's 'bought in' to the…

What do you think the financial standing is of a company that since 2015 has taken bitcoins and given people tokens valued at the current btc/usd price?

They are essentially taking shorts on bitcoin over the last 7 years.

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

#447

Post by makoto12 »

crypto noob over here, i'm a bit confused with all the noise i'm seeing, if someone could explain.

I'm hearing that Tether is still honouring $1 withdrawals, over a certain amount i think $100k.

What's stopping me from buying 100K in tether at 98c, for $98k and then redeem it from Tether at $100k, making $2k with zero risk?

Surely i can't do that because that would autocorrect the price back to $1 ?

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

#449

Post by rewiz »

rwmj wrote: post #342
pjc50 wrote: post #325

Earlier quoted context omitted.

> 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.

i dont know any individual who has ever redeemed

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

#450

Post by derac »

makoto12 wrote: post #447

crypto noob over here, i'm a bit confused with all the noise i'm seeing, if someone could explain. I'm hearing that Tether is still honouring $1 withdrawals, over a certain amount i think $100k. What's stopping me from buying 100K in tether at 98c, for $98k and then redeem it from Tether at $100k, making $2k with zero risk? Surely i can't do that because that would autocorrect the price back to $1 ?

risk exposure to that not being honored and tether crashing.
Post reply on HN