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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

#631

Post by andy81 »

davidweatherall wrote: post #189
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?

Anyone making $500m/year legit could rug for $20bn+, so they walk away before that point.

Tether have a great business model but seem to spend 90% of their time falsifying reserves instead. It certainly gives the impression they're planning on taking the capital rather than interest. They're already in breach of the NYAG agreement, with three+ more cases pending.

It actually seems like a great project for e.g. Fidelity or Vanguard to set up a mutual fund that doesn't pay interest. With the name recognition it would be immediate #1 stablecoin assuming they offered the same level of audit scrutiny and reserves breakdown as their other products (i.e. 100x anything offered in the cryptocurrency space currently).

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

#632

Post by giraffe_lady »

bratwurst3000 wrote: post #572
Mvandenbergh wrote: post #472

Earlier quoted context omitted.

The reasons this is nonsense are twofold: First, I have never actually seen any comments here disavowing themselves of responsibility. It is always aimed at protecting others and this is rooted in the obvious fact that a very large number of people are not (and we do not expect them to be) experts in investment. That assets can go up or down is one thing, and nobody can be protected from that, but there is an extensi…

If people cant handle the basic of investing they shouldnt do it. If its too good to be true it mostly isnt. Is it the casino foult that their customers loose money because the ambient is so inviting and screams wining?

It's a relatively mainstream opinion that yes they are. Casinos are not allowed in some places, many individuals who could choose otherwise explicitly choose not to work for companies involved in gambling.

My morals don't personally draw that line but it's common enough that you can't dismiss it as preposterous.

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

#633

Post by acdha »

t0mas88 wrote: post #616
id wrote: post #604

Earlier quoted context omitted.

The problem with Tether is that for all we know, it could be completely unbacked and therefore worthless.

Well not completely, in the sense that they seem to be exchanging USDT for USD at a 1:1 ratio if you show up with 100k or more. There have been no reports of people that tried to get that and didn't get it. On the other hand maybe people holding a lot of USDT wouldn't not want to tell anyone else if they were unable to redeem it before they had sold it all on the exchanges...

That last part is key: you’d only publicly share bad news if you had unloaded – and if the news isn’t good they’d have an incentive to offer a major holder a better deal with an NDA.

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

#634

Post by dannyw »

adastra22 wrote: post #429
sdgdfgsfdfgsdfg wrote: post #230

Earlier quoted context omitted.

The high buy volume at $0.98 is due to arbitrage. This is to be expected before the final crash. People are using the opportunity to net an instant 2% return. Buy $10M USDT at $0.98, redeem at Tether for $1, take home $200K of profit instantly. Thing is, this will only last until Tether runs out of liquidity. Then all bets are off.

> redeem at Tether Find me one person that has ever done this. Just one. I will wait.

I've done this for years via Bitfinex. Occasionally the wires are a couple days late but never any issues.

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

#635

Post by bratwurst3000 »

SamBam wrote: post #608
bratwurst3000 wrote: post #595

Earlier quoted context omitted.

Yes and everyone warned everyone investing in crypto that it could go from hero to zero instantly. I cant believe anyone didnt know this risk.

I failed to see any of these warnings you're talking about in any of the Superbowl ads. I'm pretty sure if I followed the Superbowl ads to crypto.com, I would fail to see these warnings. Yes, for everyone deeply connected online, who has been following crypto for the last several years, of course we've talked about plenty of warnings many times. But the current marketing campaigns are not aimed at such people.

It is bad and sad that many people lost money that didn’t want to sound like I’m not aware of that.

And yes you could be right it’s just my bubble. But it’s still sad that so many people fall for get rich quick scheme.

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

#636

Post by xur17 »

NavinF wrote: post #85
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…

> Seeing USDT at 0.97 temporarily doesn't mean much more than there is an insane amount of money exiting right now Eh you might be right, but there are orders executing at 0.95 now. Will you buy in for a “free” 6% ROI? I was planning on buying a couple of GPUs, but now I think I should wait a bit just in case ETH crashes lol Edit: Yeah you should have put your money where your mouth is. It’s back up to 0.988.

> I was planning on buying a couple of GPUs, but now I think I should wait a bit just in case ETH crashes lol

If you're willing to wait a few more months, I'd definitely wait. Regardless of a price drop, there should be a demand drop due to the transition to PoS.

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

#637

Post by jklinger410 »

salawat wrote: post #619
jmyeet wrote: post #589

Earlier quoted context omitted.

> First, I have never actually seen any comments here disavowing themselves of responsibility. Pulling from the comment I was replying to: > ... many poorer and financially illeterate people have been tricked ... That's quite literally disavowing responsibility. > ... but there is an extensive body of law intended to protect people from outright falsehoods This is true and the law hasn't quite caught up to crypto sca…

>I 100% agree and this is something that libertarians and anarchists gloss over completely. I assure you, libertarians and anarchists, or at least the ones who have actually bothered to go beyond the surface, are not unaware of this. You're wielding those monikers as if anyone to bear them would be a fool by definition. It is clear low trust has adverse effects on growth. What is not clear is that unbounded rapid gro…

> You're wielding those monikers as if anyone to bear them would be a fool by definition.

Not as far off as you might think

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

#638

Post by epidemian »

mensetmanusman wrote: post #460
jmyeet wrote: post #455

Earlier quoted context omitted.

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.

#whynotboth?

Grifters should be punished for their scams, and it's also acceptable for "investors" on these scams to lose their money i think (that's a hard punishment already; no need for anything extra). Thinking of it the other way around: as a society, it wouldn't be nice to bail out or compensate these "investments", as doing so would encourage people to keep doing throwing their money on things they don't have any clue about and expect to be compensated if it turns out bad.

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

#640

Post by xur17 »

vishnugupta wrote: post #302

Tether just burnt $600M worth of USDT, which I think means their reserves have dwindled by $600M. Am I reading it right? https://twitter.com/whale_alert/status/1524675158836973570

Doesn't that just mean $600M was redeemed? A reduction in the outstanding USDT sounds like a positive sign.
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