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

451–460 of 976 posts

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

#451

Post by makoto12 »

derac wrote: post #450
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.

Is there evidence that it's currently not being honored?

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

#452

Post by Ekaros »

usednet wrote: post #260
benjaminwootton wrote: post #240

Earlier quoted context omitted.

How does the sell pressure play out? Is this other people willing to sell for 99 cents, 98 cents on exchanges because Tether can’t fulfil orders fast enough? I assume they are always willing to buy at $1 else it all collapses?

AFAIK, Tether will not convert to USD for you unless you register and have >100k Tether. Therefore, most holders only ability to “cashout” is on exchanges. Obviously, this is problematic.

Compounding with this is that when you move money to exchange you have some USD there. But then to actually trade either you receive some stable coin or have to first trade for one...

Probably applies only to some, but still a real insane thing...

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

#453

Post by xur17 »

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 ?

You absolutely can do this (I just signed up for an account). That said, it isn't 0 risk (nothing is) - they could technically fail to redeem, and then you'd lose your money.

If you think they will redeem, this is indeed a good trade.

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

#454

Post by nstart »

KoftaBob wrote: post #448

What exactly is the point of stablecoins that are pegged to the USD? Why wouldn't I just accomplish the same function with an actual USD?

It's easy to trade on crypto platforms with stable coins. A lot of people will typically buy tether and then use tether to buy other coins using the exchange of their choice. It works the other way around too when you want to store your value in a predictable form if a currency like bitcoin is doing a dip. Just convert your bitcoin to usdt and hold it there till btc starts going back up.

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

#455

Post by jmyeet »

shafyy wrote: post #55
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. The sad reality is that many poorer and financially illeterate people have been tricked by VCs and other grifters into this with billions of dollars spent in advertising. So, no, they don't deserve to lose their money to these assholes. These assholes need to be prosecu…

I actually hate people disavowing themselves of responsibility here. While there is definitely some shady stuff in Crypto (particularly NFTs, which seem to be 99% scams), there's a certain level of personal responsibility required here.

People saw the meteoric rise of Bitcoin and got a serious case of FOMO. Everyone wanted to be on the next Bitcoin. This, ultimately, is the American Dream: to get rich by doing nothing other than getting lucky and being able to say how smart you are. Not by creating any kind of value.

People should be honest and admit (at least to themselves) that they didn't understand what they were investing in let alone believe in it fundamentally. They just wanted to get rich.

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

#456

Post by vkou »

jiggawatts wrote: post #377
rwmj wrote: post #342

Earlier quoted context omitted.

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.

Statements like this blow my mind . 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…

> But the entire point of Tether hinges on it being perceived as AAA.

No, the entire point of Tether hinges on everyone pretending that it's AAA, and just letting the Tether money printer lift all crypto boats.

Anyone paying attention knows its a fraud, but are happy to look the other way, because it's the reason BTC is $30K, instead of $600 right now. Sure, they'll lose whatever they have invested at the moment when the house of cards collapses, but if you can't predict when the music will stop, the smart move today is to keep playing.

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

#457

Post by DebtDeflation »

nikanj wrote: post #31

Look at the front page of https://coinmarketcap.com/ There are 10114 different coins listed. Even if cryptos will deliver on the promises of the fully decentralized future, are we going to need that many different instruments? Today practically all merchants takes Visa and Mastercard. Some even take Amex, and a minuscule amount take BTC. Does anyone take a coin from page 73 of coinmarketcap.com?

>There are 10114 different coins listed.

And at least 10110 are shitcoins. We're now dealing with 2nd order memecoins. Dogecoins were the original memecoin but now we have Shiba Inu coins. Is there really any reason for anything other than BTC, ETH, and maybe XRP to exist at this point? Maybe XMR since it fulfills the original intent of privacy and anonymity, if not for the fact that governments are trying to stamp it out most exchanges don't want to touch it.

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

#458

Post by piva00 »

londons_explore wrote: post #277
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…

Financially literate people see that tether might be backed by thin air. They're pretty clear on their homepage that "Every Tether token is 100% backed by our reserves, which includes traditional currency and cash equivalents, and may include other assets and receivables from loans made by Tether to third parties.". "receivables from loans" can be worth nothing if it's a loan to someone with no assets. I believe the…

> "receivables from loans" can be worth nothing if it's a loan to someone with no assets.

Eerily sounding like CDOs from 2008, collaterised debt obligations.

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

#459

Post by lottin »

cercatrova wrote: post #424
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…

I have a hard time feeling sorry for these people. Sure, they may have gambling tendencies, but at some point, one must reckon with the consequences of their actions, and reap what they sow.

Not to mention that many of these supposed victims are arrogant assholes, whom I and others tried to warn in every possible way and we only got mockery and disdain in return.

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

#460

Post by mensetmanusman »

jmyeet wrote: post #455
shafyy wrote: post #55

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. The sad reality is that many poorer and financially illeterate people have been tricked by VCs and other grifters into this with billions of dollars spent in advertising. So, no, they don't deserve to lose their money to these assholes. These assholes need to be prosecu…

I actually hate people disavowing themselves of responsibility here. While there is definitely some shady stuff in Crypto (particularly NFTs, which seem to be 99% scams), there's a certain level of personal responsibility required here. People saw the meteoric rise of Bitcoin and got a serious case of FOMO. Everyone wanted to be on the next Bitcoin. This, ultimately, is the American Dream: to get rich by doing nothin…

This mentality of blaming the victim can muddy the waters and make it easier for criminals to get off the hook though.
Post reply on HN