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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

#911

Post by azth »

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…

> The fact that they've been minting billions of tether without collateral

You mean like the USD?

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

#912

Post by wbsss4412 »

klibertp wrote: post #906
wbsss4412 wrote: post #878

Earlier quoted context omitted.

I was with you until the last sentence. When has housing ever not been an asset class? Real estate is and was the original asset class.

I think "housing" here means "real estate" + "people living inside".

I’m not sure how that distinction makes a difference.

Within the western world, that has always been the primary basis of one’s wealth until fairly recently.

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

#913

Post by michael1999 »

abzolv wrote: post #505
jiggawatts wrote: post #377

Earlier quoted context omitted.

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…

> 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. 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 R…

The gold window is closed.

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

#914

Post by GVIrish »

md_ wrote: post #904
GVIrish wrote: post #817

Earlier quoted context omitted.

The financial wizardry behind NFT's is the wash trading. A lot of average people looking to get into NFT's simply don't understand that many of the 'success stories' they see of people making big money on NFT's are just wash trading trying to lure in the marks.

I mean, yeah, but wash trades aren't wizardry. Like, you go on eBay, it's always possible sale prices are someone selling to themselves and just paying the transaction fee. I hope/assume that's fairly widely understood. The Luna "automatic peg" stuff is genuinely clever, but with genuinely surprising implications (at least for me, a casual observer/layperson) for dynamic instability.

Yeah I mean wash trading isn't that sophisticated, but it is wizardry to the people gettinf fooled by it. The algorithmic peg and other stablecoin shenanigans aren't necessarily that sophisticated either, and yet...

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

#915

Post by ForHackernews »

vineyardmike wrote: post #869
ForHackernews wrote: post #353

Earlier quoted context omitted.

Great, you've invented a boring old bank. That's not innovation. (Well, technically an unlicensed wildcat bank, but still) Literally the only new thing about blockchains is an ecologically destructive brute-force solution to the byzantine generals problem. However, it turns out nobody except CS students cares much about that, so they have to dress it up with cartoon apes and web3 buzzwords.

It’s also a bank with low Tx fees and fast Tx at any time of day, anywhere in the world. Something that is bafflingly still hard to find.

Only in the USA. The UK Faster Payments Service transfers between any accounts for free in minutes: https://en.wikipedia.org/wiki/Faster_Payments

The US is actually building their own similar service (based directly on UK FPS), which will be available...eventually https://www.theclearinghouse.org/payment-systems/rtp/institu...

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

#916

Post by can16358p »

ptero wrote: post #484
can16358p wrote: post #355

Earlier quoted context omitted.

Yup. I live in Turkey, and don't trust the local currency (Lira) and the government's power over banks to keep my dollars too. Crypto is the safest in that sense for me, and a stablecoin is ironically more trustworthy than my country's currency in general. Yet I don't trust USDT or UST so I'm on relatively more trustable USDC or BUSD.

It seems to me that some gold coins would work even better in this situation (for longer term savings, not something you move in and out every month). Did you consider this? An honest question.

Got some in the family. But as a person who is interested in technology and a developer, I'm finding crypto more fascinating.

Long-term stability wise I think crypto will outperform gold anyway.

As a smart contract developer who knows a bit about the inner workings of crypto, I picked it.

But frankly yes gold would also be a good option. It has its own risks but safer than my country's currency for sure.

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

#917

Post by imron »

ARandumGuy wrote: post #683
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 partic…

> Any de-peg for a stablecoin like Tether is a bad sign.

Except there have been equivalent (or worse) dips for tether in 2016, 2017, 2018, 2019 and 2020 and they weren’t the harbinger of doom for tether either.

I’m not saying that tether won’t fail, just that its recent fluctuations and ‘de-peg’ is not the same as terra (tether is basically back to normal now, terra far from it).

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

#918

Post by FireBeyond »

ckastner wrote: post #336
pjc50 wrote: post #323

Earlier quoted context omitted.

> Surely you just mint the tokens in exchange for dollars Step 1: find someone willing to give you dollars in exchange for a token that's guaranteed to be worth something between 0 and 1 dollars. Step 2: find a bank willing to let you be a money transmitter for millions of anonymous pseudo-dollars whose owner you have no idea of, setting off every single money laundering alarm in the building.

> Step 2: find a bank willing to let you be a money transmitter for millions of anonymous pseudo-dollars whose owner you have no idea of, setting off every single money laundering alarm in the building. This was the biggest red flag behind Tether to me, where we are talking about not millions but billions of pseudo-dollars. The risk profile is beyond anything reasonable that a bank could or would accept. Tether minti…

In 2019, they were claiming $3.5B a week. Even worse.

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

#919

Post by FireBeyond »

pjc50 wrote: post #349
ckastner wrote: post #336

Earlier quoted context omitted.

> Step 2: find a bank willing to let you be a money transmitter for millions of anonymous pseudo-dollars whose owner you have no idea of, setting off every single money laundering alarm in the building. This was the biggest red flag behind Tether to me, where we are talking about not millions but billions of pseudo-dollars. The risk profile is beyond anything reasonable that a bank could or would accept. Tether minti…

The billions of dollars of _backing_ should show up somewhere. https://twitter.com/dsquareddigest/status/140291428628503347... > again - who is on the CP desk at Tether? Who is their account manager at Goldman Sachs? Who do they talk to at, say, the GE corporate treasury? Commercial paper is a short term money market that has to be managed and rolled - you can't just buy and hold the bonds anonymously. Dan's argument…

Hell, their bank's supposed* Deputy CEO in an interview couldn't even name the two types of banking license that are applicable in the Bahamas, or which one they had, but he knew they had one, and "possibly the other, I'm not sure".

* He was the Deputy CEO according to the interview and his LinkedIn (though there was all sorts of hilarity there, like claiming he graduated HEC Lausanne at 15, and becoming a Professor of Finance somewhere in Lebanon while running multiple funds all over. But after the disastrous interview, he was quickly deleted from the bank's website. And then re-added when people started questioning that. And then removed again when the bank hurried to "revamp" their website (to a WordPress installation, no less, and gaining 15 years of experience in the process).

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

#920

Post by archontes »

eric_cc wrote: post #802
DebtDeflation wrote: post #404

Earlier quoted context omitted.

We will almost certainly see pre-2017 prices at some point.

Won't happen because USD buying power has gone down considerably since 2017 due to The Fed printing money out of thin air like there is no tomorrow.

Easy for a weak currency to buy a worthless one.
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