Tether starting to lose its peg too, after Terra did

Post by eric_cc » Thu, May 12, 2022, 3:18 PM UTC

Mvandenbergh wrote: post #472

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…

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…

Post by bb88 » Thu, May 12, 2022, 3:19 PM UTC

mat0 wrote: post #764

jnsaff2 wrote: post #720

Earlier quoted context omitted.

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…

Post by prox » Thu, May 12, 2022, 3:19 PM UTC

Spooky23 wrote: post #538

hnbad wrote: post #155

Earlier quoted context omitted.

You're perfectly describing the sunk cost fallacy. The naifs who overcomitted on a "guaranteed win" investment can't walk back from it because that would mean giving up on a lot (e.g. 50% or more) of their investments, which often as you said isn't money they really had "lying around" (even your retirement fund isn't really disposable once you actually need to retire on it). The failure to achieve the promised growth…

I think the prevalence and scale of criminal activity through crypto was under appreciated in the mainstream. Let’s be real, much of the market activity is money laundering, ransomware and other payoffs, and Chinese people bypassing currency controls. It’s no coincidence that China cracked down on miners and the price dropped a few months ago. It’s plain as day now that with Russia being removed from the internet and…

Post by dragonwriter » Thu, May 12, 2022, 3:21 PM UTC

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?

Post by drexlspivey » Thu, May 12, 2022, 3:22 PM UTC

gizzlon wrote: post #714

norswap wrote: post #539

The speculation in this thread is silly. While Tether is certainly opaque (you could say shady), it's incredibly doubtful that it's unbacked to a significant extent. Even if it's only backed at 50% (which would be really shocking to me), it would take 39B$ to flow through the system to actually cause a depeg. That's very unlikely, and just the logistics of it means it would leave a lot of time to Tether to clear the…

> Even if it's only backed at 50% (which would be really shocking to me) Why would that be shocking? It seems clear to me that they are full of shit. Maybe it's 80% or 8% or basically 0% . Who knows..