Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Tether's Troubles in November 2022

kalzumeus.com

Post reply on HN
Print view View original

91–100 of 126 posts

Re: Tether's Troubles in November 2022

#91

Post by MuffinFlavored »

grey-area wrote: post #24
gzer0 wrote: post #19

> The risk-on assets are 12.86% of the reserves, via simple division. Their equity is 0.36% of assets. If their risk-on assets were impaired by more than about 2.86%, Tether must have (by their own numbers) needed recapitalization. It is not credible that they suffered no serious impairment. Bitcoin, the blue chip cryptocurrency, is down by more than 10%. > I challenge anyone to find a portfolio construction for digi…

Yes tether is an obvious lie, and it’s now just a question of when, not if, they collapse.

what would have to trigger the catalyst for their collapse and why hasn’t it happened yet? are they growing stronger or weaker every day?

Re: Tether's Troubles in November 2022

#92

Post by SilasX »

evdubs wrote: post #65
bibabaloo wrote: post #46

Can someone explain why the bank run on Tether hasn't already happened? We've seen with FTX that it only takes a little FUD for people to get scared and start withdrawing. It's not like there isn't more credible stablecoin alternatives, USDC looks a lot more credible.

A (partial) bank run on Tether already happened. From May 2022 - July 2022, Tether capitalization went from $83B to $66B ($17B withdrawn). The recent bank run has so far been a lot smaller. From Nov 9th to today, the move has been from $69.75B to $67.25B ($2.5B withdrawn). Maybe if the FTX contagion extends, we'll see more redemptions. https://coinmarketcap.com/currencies/tether/

A bank "run" where it successfully honors redemptions, and the vast majority don't need to redeem, isn't really what is meant by a run.

Re: Tether's Troubles in November 2022

#93

Post by andirk »

zbentley wrote: post #67
andirk wrote: post #54

Earlier quoted context omitted.

All coins are scams? Wow that's quite a bold statement and clearly from someone who has researched all the top 500 projects in the space and clearly not some1 who is bitter they didnt get in at the beginning despite being there and not pulling the trigger.

This is such a tiresome common refrain, and a very telling one. Critical? Then you must not have gotten rich/must not be money material! This is quite literally the line used by "energy deregulation" MLM hucksters. It's OK to admit that you're enthusiastic about something because you think it'll make you rich. Heck, it's even OK to promote it because you think that will help pump things in some small way (or a large…

Project devs often have next to nothing to do with pricing. They're building whatever product with a public ledger and a currency type of thing involved with it. Please stop blanket statements of this is a scam! One can say the valuation is grossly inflated, there are a lot of bad actors, etc. but my god this idea that internet money (but of course not that inflation-ridden bombs-not-gold-backed USD!) Is a scam by definition is childish.

Tether? Scam. Ripple? Scam. Most shitcoins? Scam. Crypto as a technology? It's just code, and open source (usually) and you personally can get involved by submitting a PR.

People buy stonks with VERY little understanding of what makes it worth something. Same shit

Re: Tether's Troubles in November 2022

#94

Post by wizeman »

zen21 wrote: post #88
wizeman wrote: post #85

Earlier quoted context omitted.

If that's the case, we should definitely ban fossil fuel generation plants. Or at least, tax them heavily. Since they're the ones actually doing the "global harm".

Not necessarily. The energy generated may be used for purposes such as heating people’s homes, or industrial processes essential for creating medicine, operating schools and hospitals etc. Of course we need to move away from these energy sources, but there are reasons we don’t just ban them overnight. You can see how this is very different from using the energy simply to operate an online gambling operation or to per…

> Not necessarily. The energy generated may be used for purposes such as heating people’s homes, or industrial processes essential for creating medicine, operating schools and hospitals etc.

... or securing a global, permissionless, decentralized, cryptography-based monetary system which cannot be debased or otherwise corrupted by the government-de-jour, including those who oppress their people.

> You can see how this is very different from using the energy simply to operate an online gambling operation or to perpetrate large scale securities fraud.

Indeed, I can see that. Fortunately, miners aren't in either of those businesses.

But since we're deciding who gets or doesn't get to use energy, let's also ban casinos, online gambling (like you said), heck.. anything that might waste energy or use it for things that we don't like (even though other people might like it or even need it).

Instead of, you know, letting the market decide who can or cannot use energy based on what provides the most value for their use of it.

Re: Tether's Troubles in November 2022

#95

Post by amluto »

andirk wrote: post #59
HPMOR wrote: post #18

Earlier quoted context omitted.

The industry IS a bad apple. There are zero legitimate use cases STILL of any crypto related product.

What about Primecoin? Finds new prime numbers all the time. Filecoin pays and gets paid for server storage space. How in any way are these projects scams? There are dozens of projects that utlize the blockchain and have a token and are not scams. The fukk outa here with this oh everything crypto is a scam. Bitter, you are.

Filecoin is interesting because there is bona fire economic activity associated with it. But, if you believe:

https://file.app/

The cost of storage on Filecoin is $0.0000001 USD / GiB / mo.

This makes no sense. That’s $10^-4 per TiB per month or one cent per TiB per 10 years. You can’t buy anything remotely resembling a hard drive, even used, for anything resembling this price. You can’t buy a disk controller. You can’t buy power to run the thing.

This means that miners have absolutely no incentive to store your data except for the lulz. This is useless for any serious purpose.

Re: Tether's Troubles in November 2022

#96

Post by nullc »

andirk wrote: post #51

Why do people use Tether scamcoin over Gemini stablecoin GUSD? It's supposedly backed 1:1 GUSD:USD and has US-regulated books. I get 5-8% interest on it and hasn't had an issue for its handful of years of being issued.

> I get 5-8% interest on it

You know these 'yield' schemes generate money by investing in ponzis right? There is just a slow countdown until your money vanishes. Gemini, in spite of their frequent comparisons with savings accounts, makes no guarantees that your money won't vanish.

I believe previously their yield was through genesis trading --- who just took on huge losses from FTX...

Re: Tether's Troubles in November 2022

#97

Post by nullc »

psychlops wrote: post #37

It's depressing to me that there is such a vocal group of people cheerleading the demise of an industry that seeks to improve the financial system on a global scale. Truly disheartening are the financially disenfranchised (and what I believe) young voices for whom any system would be better than the current. It's to the extent that many think that attacking capitalism itself is the answer. There is an incredible amou…

People are cheering the crypto scams and ponzis going away. Those are the real threat to the potential benefits, not people being critical on the internet.

Re: Tether's Troubles in November 2022

#98

Post by antoniuschan99 »

acchow wrote: post #12
jgalt212 wrote: post #7

I'm a huge crypto bear, but the Fed Balance sheet is still way to big for the entire space to go to zero. Where would all the money go? SPX X 2, hyperinflation? https://www.federalreserve.gov/monetarypolicy/bst_recenttren...

Can you elaborate? How does crypto going to zero create money that has to go somewhere? How does crypto dropping in value in any way create money that needs to go somewhere? I think you have things backwards...

Mainstream media is saying it’s pretty much a bankrun. So massive amount of outflows (from everyones wallets on the exchange) is also what tanked the token?

Re: Tether's Troubles in November 2022

#99

Post by zen21 »

wizeman wrote: post #94
zen21 wrote: post #88

Earlier quoted context omitted.

Not necessarily. The energy generated may be used for purposes such as heating people’s homes, or industrial processes essential for creating medicine, operating schools and hospitals etc. Of course we need to move away from these energy sources, but there are reasons we don’t just ban them overnight. You can see how this is very different from using the energy simply to operate an online gambling operation or to per…

> Not necessarily. The energy generated may be used for purposes such as heating people’s homes, or industrial processes essential for creating medicine, operating schools and hospitals etc. ... or securing a global, permissionless, decentralized, cryptography-based monetary system which cannot be debased or otherwise corrupted by the government-de-jour, including those who oppress their people. > You can see how thi…

> cannot be debased or otherwise corrupted by the government-de-jour

It doesn’t seem to need the government to corrupt it.

Post reply on HN