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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

#761

Post by tobltobs »

gws wrote: post #743

Come on guys, do some research, Tether now publishes audited reserve reports as part of the settlement with the US Department of Justice. ~70% of tether in circulation are backed by Treasury Bills and cash deposits, so immediately redeemable. The other ~30% in short term commercial paper can pose a bit of risk but unless they did something really stupid (and they are all but stupid) nothing to put the backing at risk…

What is your research telling you about those red flags:

Being "audited" by a company nobody ever heard of,

not disclosing what commercial papers they hold for "privacy reasons",

being the seventh-largest holder of commercial papers without any traders seeing Tether buying anything.

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

#762

Post by more_corn »

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…

Yes, but. There were voices of reason and caution the whole time. People would ask me “you know tech stuff what crypto should I invest in”. “None, it’s not investing. It’s speculation”

You know how many people listened to me? None of the people who asked me for advice, and got the above advice indicated in any way that it would keep them away. There was a lot of greed pushing the clueless into poor choices. So now who do we blame?

Honestly there’s enough to go around.

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

#763

Post by cormacrelf »

wing-_-nuts wrote: post #760
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, 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. Holy projection batman. I agree that much of crypto is rampant speculation, but pretty much all of the legitimate uses of crypto is done in stable coins. People don't have money sitting in tether because they wanted to get rich.

Not least because stablecoins were meant to be the place to park your money without being subject to the huge +/- swings or risks of almost any other asset. If people are suffering, it’s because they believed the operators of stablecoins when they said funds were in the safest place going. And now look at today: Tether says it is honouring all redemptions as usual — which, as usual, means only redemptions over $100K are honoured. The small fish can go cry, apparently, or try an exchange at the market price whose detachment from $1 is the whole reason for a run on Tether. Take the concept of FDIC insured bank deposits, turn it completely on its head, and that’s what this policy is.

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

#764

Post by mat0 »

jnsaff2 wrote: post #720
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…

If it is 20% backed, haven't they pocketed the other 80bill already anyway? Therefore the 20B left is just a lottery ticket you might as well pay to have a chance to klept some more hundreds of bills? What am I missing here? That the 80 bill has been badly spent on papering over some exchange losses?

People use USDT to buy and sell other tokens, it's like an on/off ramp to all things "crypto". You give them 1USD, they give you 1USDT, and you can buy whatever fake coin you like.

The issue is that it's true that for every 1USD you give to Tether, there's 1USDT, but it's not true that for every 1USDT Tether mints, there's 1USD in some bank. Estimates are in the low 10%, but it's probably less. They have essentially a money printer.

(Some) people really believe that USDT is pegged to the dollar, so they really believe that if they have some ETH for instance, and they sell that ETH for USDT, that the translation ETH -> USDT -> USD is maintained, but that's the whole problem, nothing stops them from minting USDT without the real USD existing. So nothing stops them from "buying" your "hard earned" ETH/Bitcoin/whatevercoin with USDT pulled out of thin air.

That's why New York said essentially "these people are liers and nothing they say is true". It's just that people continue to play this game. And why is that? Because no financial institution would give you Bitcoin/ETH/whatever for dollars, because if they do, they are essentially banks and all the KyC rules / regulations apply.

So they came up with this charade, these "stable coins" are nothing more than a workaround for on and off ramps, because people have FIAT money (real money if you ask me). This is why Bitcoin doesn't go lower than 30.000, because there's huge amount of Tether being used to buy Bitcoin and keep the price up. Once this money printer charade goes bust we will see the actual price of Bitcoin, Ether, NFTs and so on.

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

#765

Post by bb88 »

frostwarrior wrote: post #665
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.

For that to be true, that coin needs to abide to the same laws as real currency. If I say that "1 dollar = 1 virtual thingy" and suddenly there are a lot of virtual thingies and their price fall, then what's the crime aside me personally being a lying f*ck that can´t be trusted anymore? I don't see how "legitDollarCoins" is legally more legit than, say, lootboxes.

It's a security and is regulated as such. So SEC, torts, etc.

In this case if you're marketing $TOKEN as a stablecoin and there's no resources to back it up then it's literally a $PONZICOIN.

$USDC might be okay, I know they've made moves to back their coin in dollars and treasuries.

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

#766

Post by mschuetz »

frostwarrior wrote: post #665
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.

For that to be true, that coin needs to abide to the same laws as real currency. If I say that "1 dollar = 1 virtual thingy" and suddenly there are a lot of virtual thingies and their price fall, then what's the crime aside me personally being a lying f*ck that can´t be trusted anymore? I don't see how "legitDollarCoins" is legally more legit than, say, lootboxes.

It's simply fraud. There are laws against fraud.

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

#767

Post by eric_cc »

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…

> many poorer and financially illeterate people have been tricked

> they don't deserve to lose their money

Do you not believe that people should be responsible for their actions?

It's sad when people make decisions that lead to them losing money. But that's part of freedom: the freedom to fail.

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

#768

Post by mannykannot »

ulzeraj wrote: post #660
hypertele-Xii wrote: post #625

Earlier quoted context omitted.

The "stable" part of the -coin is all marketing. It's true while enough people believe it's true... and if at any point enough people disbelieve it, it'll be everything but.

You are moving the target. I've asked how stable coins pegged to the dollar are considered speculative assets.

No-one in this thread has claimed that stable coins are themselves speculative assets.

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

#769

Post by HWR_14 »

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…

I assume that based on this, you oppose the legal consequences that Elizabeth Smart is facing, and think it's 100% the investor's fault they wrote checks to Theranos.

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

#770

Post by HWR_14 »

s1artibartfast wrote: post #750
dagw wrote: post #576

Earlier quoted context omitted.

Is it the casino foult that their customers loose money Casinos are very strictly regulated and must post the exact rules and probability of winning for all their games. If the casino lies about the rules of the game or your chances of winning, then yes it is absolutely their fault and they will be held liable.

Where can I find my exact win rate at poker posted?

It should be pointed out that casinos are only required to post odds for perfect play in games that have skill (e.g. poker, blackjack). Therefore, your poker odds would be based on the rake.
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