501–510 of 976 posts
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One thing I don’t understand here: where does the smart contract get the information of the current luna/usd exchange rate? It can’t be an api call surely, it must be on-chain somehow.
Validators vote on the current exchange rate. https://docs.terra.money/docs/develop/module-specifications/...
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> 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…
Matt Damon at least should never get work again. Except maybe shilling jewellery on PVC.
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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…
> 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.
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This is an amazing explanation. Thank you!
That explanation is not correct. Algorithmic stablecoins rely on a pairing with another crypto, in UST’s case LUNA. 1 UST can always be swapped to $1 US dollar of LUNA. It is interchangable, so $1 US dollar’s worth of LUNA can also be swapped for 1 UST. Hence, the “algorithmic” in the name. This way traders are always incentivized to keep the price of UST at $1. There is no collateral requirement. In UST/LUNA’s case…
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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.
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…
No, they don't. This is what Tether says in its ToS at https://tether.to/en/legal :
"Tether reserves the right to delay the redemption or withdrawal of Tether Tokens if such delay is necessitated by the illiquidity or unavailability or loss of any Reserves held by Tether to back the Tether Tokens, and Tether reserves the right to redeem Tether Tokens by in-kind redemptions of securities and other assets held in the Reserves."
So, instead of redeeming your $1M in USD fiat, they can give you an equivalent amount of Dogecoin or Chinese commercial paper.
Furthermore, they say: "In order to cause Tether Tokens to be issued or redeemed directly by Tether, you must be a verified customer of Tether." You are not a "verified customer" of Tether if you exchanged USD for USDT at Coinbase or Binance.
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Monero still tries to fit in this niche. The only thing it's useful for is financial crime though - if your problem is just making a payment you can do it in dollars relatively easily and safely.
Payments here in the EU, even between countries, are pretty straightforward. Transferring money from the EU to UK, or EU to USA, Peru, or Canada get more complicated and expensive though. Those are the kind of transfers I had in mind. There are transferwise, and similar services, but even so it's not as cheap as it should/could be.
I was visiting Montreal from the US a couple decades ago, and I wanted to exchange some US dollars for Canadian, and in the financial center, I found five different exchanges with five different rates. I had to walk about six blocks total to hit them all, but the difference between the lowest and highest was significant.
https://finance.yahoo.com/news/tether-reduced-exposure-comme... The CTO of Tether issued a statement earlier today stating that Tether has significantly reduced its exposure to commercial paper and now holds the majority of its reserves in US Treasuries. That should be super easy to verify, yet he refuses to release any details, saying to just wait for their next quarterly update on reserves (which in the past has ju…
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> 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…
It's easy to say "they should have known" better because in absolutist terms it's correct. But you're focusing on the 'what' and not the 'why'.
For example: https://rollcall.com/2021/09/07/left-behind-by-financial-sys...
"Normal" investing is complicated, and stacked against regular people. Now we're asking people to understand blockchain and cryptography as well as investing. Yet it's sold as democratisation of investing. I mean, seriously.
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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…
A lot of pro-crypto users avoid USDT like the plague and assume it will at some point come crashing down (and drag the market down along with it).
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Can someone explain stablecoins to me? Most online explanations talk about how the currencies are "pegged" to various assets/real world currencies/physical objects/algorithms/cryptocurrencies, however they never explain how the pegging is done. What is happening right now that is causing the price to fall, what prevented it from falling over the last few years, and why isn't that thing preventing it from falling now?
Matt Levine did a great write up of algorithmic stablecoins here: https://www.bloomberg.com/opinion/articles/2022-05-11/terra-... "1. You wake up one morning and invent two crypto tokens. 2. One of them is the stablecoin, which I will call “Terra,” for reasons that will become apparent. 3. The other one is not the stablecoin. I will call it “Luna.” 4. To be clear, they are both just things you made up, just numbers o…
Their solution was to staple a HYIP scheme to the side of it-- a service where you can deposit coins and get a 20% annual return.
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