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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

#681

Post by lumost »

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…

There are so many ponzi schemes and other scams in crypto. In hindsight it shouldn't have been surprising that an unregulated tradable contract scheme would have immediately turned into this. One item that no one has spoken about yet, how much real money is actually tied to Crypto? Some of these coin implosions are as bad as Madoff's mess on paper ($36 billion).

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

#683

Post by ARandumGuy »

imron wrote: post #156

I'm not sure the situation is comparable to Terra. If you can't read the Y-axis on a graph, and you only look at the last 7 days, then it looks like Tether has gone off a cliff. If you read the Y-axis you'll see it's barely moved, and if you zoom the graph out, it's barely a blip compared to previous deviations in price. Now it may well be that Tether is also heading to zero, but it's very different from the Terra fl…

Any de-peg for a stablecoin like Tether is a bad sign. It indicates that Tether's price stability mechanisms are unable to cope with the amount of people trying to sell Tether. This may indicate one of two things:

1) There are an incredibly large amount of people selling Tether. This indicates low confidence in Tether, low confidence in crypto as a whole, or both.

2) Tether's price stability mechanisms are not particularly robust, and struggle to handle spikes in people selling Tether. This calls into question Tether's claims of stability.

Of course, it also may just be a momentary dip that is fixed after a few days. But the entire crypto market is balancing on a knife's edge right now, and this could be what pushes it over.

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

#684

Post by whimsicalism »

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.

Oh yeah, just hold dollars - what an easy solution.

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

#685

Post by trompetenaccoun »

Traster wrote: post #558

The thing that I think some people miss about Tether is that it's not about whether it is backed enough it's either fully backed or it isn't. If it's not, it's not a question of whether it's back enough to weather this storm, it's about whether the people running it think they can weather this storm. If they think they can keep it running they'll sell whatever backing they have and keep the peg. But if they even thin…

Yep, this fractional reserve scheme they're running sounds shady. Almost like what banks are doing when they create book money out of nothing. Which is of course perfectly legal if you're rich enough to set up a private bank but the difference is they're doing it on a public ledger where everyone can see exactly how much emission there is, while bank books aren't public. Doing it in the open clearly goes too far, they're giving away the bank secrets.

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

#686

Post by f0xJtpvHYTVQ88B »

Traster wrote: post #558

The thing that I think some people miss about Tether is that it's not about whether it is backed enough it's either fully backed or it isn't. If it's not, it's not a question of whether it's back enough to weather this storm, it's about whether the people running it think they can weather this storm. If they think they can keep it running they'll sell whatever backing they have and keep the peg. But if they even thin…

> Tether reserves the right to refuse registration to, to bar transactions from or to, or to suspend or terminate the administration of Services, Digital Tokens Address, or Digital Tokens Wallet for or with, any user for any reason (or for no reason) at any time

> 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. Tether makes no representations or warranties about whether Tether Tokens that may be traded on the Site may be traded on the Site at any point in the future, if at all.

https://tether.to/en/legal/

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

#687

Post by jcranberry »

micromacrofoot wrote: post #529
raiyu wrote: post #468

Earlier quoted context omitted.

The American dream is to make it through hard work, what you are referring to is simple greed and laziness and it’s been around since humanity attained consciousness.

is that really the dream? I always thought it was just having a normal job, work 9-5 and come home to house/car/family

I think thats another facet of the dream. The theoretical starting point of the American dream is probably the immigrant who comes to the country and has nothing. So that would be an achievement compared to that starting point as well.

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

#688

Post by Traster »

frostwarrior wrote: post #643
Traster wrote: post #558

The thing that I think some people miss about Tether is that it's not about whether it is backed enough it's either fully backed or it isn't. If it's not, it's not a question of whether it's back enough to weather this storm, it's about whether the people running it think they can weather this storm. If they think they can keep it running they'll sell whatever backing they have and keep the peg. But if they even thin…

Serious question, how can you sue over this kind of thing? I thought the whole point of crypto is that it's not regulated. And that also meant that if you got screwed then you are SOL.

I'm certain that with billions of dollars on the line a creative lawyer will find some avenue to attempt to get the money back. At the very least there's an arguable case that they've committed some level of fraud by mis-stating how well backed it is. The question of whether you'd win, and whether you'd be able to enforce any judgement are different issues.

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

#689

Post by capableweb »

lxgr wrote: post #668
whimsicalism wrote: post #666

Earlier quoted context omitted.

Dude, it's at 99.5 cents.. it's dipped this much before.

It was at 95 cents about six hours ago. Not entirely unexpected to see a dip of that magnitude due to limited liquidity at nighttime when most USD payment rails are offline (market makers don't have infinitely deep pockets), but also not exactly confidence-inspiring.

For the record, USDT was at its lowest point ~$0.91, sometime in April 2017, and seems to have recovered after that as well.

I'd never touch USDT for other reasons (why not use Dai?), but I won't say it doesn't seem like the money printer will go on for just a bit more.

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

#690

Post by f0xJtpvHYTVQ88B »

eqmvii wrote: post #669
alexk307 wrote: post #652

Earlier quoted context omitted.

They can be sued if they claim that they hold more assets than they are issuing. If you tell everyone that it's a dollar per coin, and suddenly there are 5 billion coins, you better have $5 billion to your name somehow. Not sure if there have been similar lawsuits in the crypto world yet.

Tether isn’t a real company operating in a country that applies laws to it. That’s the whole point.

Tether is a company and laws have been applied to it.

https://ag.ny.gov/press-release/2021/attorney-general-james-...

https://www.bloomberg.com/news/articles/2021-07-26/tether-ex...

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