Wasn't Tether the one that was revealed to have only had enough backing for like 3% of its coins a few months ago? Surely that must be drying up now.
Tether Withdrawals Top $10B
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Re: Tether Withdrawals Top $10B
#22glad to see hn isn’t buying it but retail investors may not be so lucky.
Crashes are ultimately almost always sad.
Reality just is, it isn't fun or nice. It just exists.
Re: Tether Withdrawals Top $10B
#23This is either a good thing in that "wow, they atleast have $10B to redeem instantly"
Or its a bad thing in that "welp, there's all the insiders exiting the boat first"
Re: Tether Withdrawals Top $10B
#24> “Whenever there’s a failure or a catastrophe in crypto, the fear is always that someone will misread the situation and overcorrect in a position that’s not helpful for the entire community writ large,” This statement is all kinds of amazing: * Casual use of the phrase "whenever there's a catastrophe in crypto", since there really is one every few days * "Misread the situation and overcorrect" --> read: taking their…
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Re: Tether Withdrawals Top $10B
#25The most concerning thing to me about Tether is they appear to own Chinese corporate debt for some unknown reason. Isn't that an insane amount of risk? In what universe is Chinese corporate debt even remotely liquid? It could be invested in Evergrande-adjacent companies for all we know. And you know when push comes to shove the Chinese government will throw foreign investors under the bus first.
The “too big to fail” businesses ended up being the best investments in the US. Commercial debt in China is guaranteed by proxy of the whole Chinese economy, because the government has direct ownership. The Chinese economy is in turn stabilized by the fact everything from your toothbrush to your car tires are made in China or using raw materials they control.
Re: Tether Withdrawals Top $10B
#26The most concerning thing to me about Tether is they appear to own Chinese corporate debt for some unknown reason. Isn't that an insane amount of risk? In what universe is Chinese corporate debt even remotely liquid? It could be invested in Evergrande-adjacent companies for all we know. And you know when push comes to shove the Chinese government will throw foreign investors under the bus first.
Who's saying it's Chinese debt? It's more likely to be loans to crypto ventures. Until it's disclosed, it's anyone's guess, but anyone claiming anything with certaintity, is full of it.
Re: Tether Withdrawals Top $10B
#27Earlier quoted context omitted.
Yeah, but notice, it isn't.
there is a crisis in the usd though. it is fast losing its status as world reserve currency and coincidentally today we are at a footstep of ww3 ;)
Well - define fast. It's amazing to me that USD has been the world reserve currency for so long. Historically only silver has done better.
Re: Tether Withdrawals Top $10B
#28Am I correct that it’s not necessarily $10B in withdrawals, as it is that the total market cap (valuation * total coins) dropped by $10B?
Seems like an important distinction?
Re: Tether Withdrawals Top $10B
#29Earlier quoted context omitted.
No, no, it's stable coin. You see 1 USDT will always be 1 USDT. That is what stable coin means and is doesn't it? That is you can always redeem one USDT for one USDT(terms and conditions might apply)...
Nah you can also redeem 1 USDT for some Evergrande debt as well
Whoever got to offload their Evergrande debt for USDT sure was lucky! That trade have made Tether some friends in high places.
Re: Tether Withdrawals Top $10B
#30This is either a good thing in that "wow, they atleast have $10B to redeem instantly" Or its a bad thing in that "welp, there's all the insiders exiting the boat first"
Redemptions are also done when exchanges need to offload Tether to buy other crypto currencies to fulfill orders.
For what it is worth I have been getting a lot of emails from OTC brokers trying to fill BTC and ETH orders over the last few days.