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USDD/Tron near collapse: USDD stablecoin below $0.97, reserve collateral drained

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Re: USDD/Tron near collapse: USDD stablecoin below $0.97, reserve collateral drained

#21

Post by fredgrott »

janalsncm wrote: post #11

What is the purpose of “stable” coins? If you want a thing that is worth a dollar, why not just use dollars? Or use Belize dollars. They’re worth $0.50 by law and have no instability issues.

The economic effects are the same as in the real world...i.e. stablecoin is leverage in that one has to have more assets set aside to peg the stable coin during bear markets. In short words more assets during bear market to help maintain the one dollar peg.

Or opposite of the word stable coins during bear markets behind the scenes with the firms that have to dramatically increase the assets used to peg the one dollar value.

That means we have two leverage levers at work the crypto coin used in trades and the stable coin itself.

Re: USDD/Tron near collapse: USDD stablecoin below $0.97, reserve collateral drained

#22

Post by JKCalhoun »

throw6383878 wrote: post #8
louwrentius wrote: post #5

I would actually be surprised if the whole crypto ecosystem isn’t going to implode soon. The thing is that it doesn’t create any value, it’s all a game of musical chairs. I don’t care VCs holding the bags, but I do care about the retail “investors” that were naive. (I don’t care about the hfsp bros). In a few years we will look back at the crypto space and we wonder why nobody intervened like nobody intervened with M…

Crypto is the only reliable way to pay contractors in Russia now. Saying "no real value" is quite stretch!

And yet, for it's otherwise-no-real-value it may come to pass that even Russian contractors will say, "Нет биткоина".

Re: USDD/Tron near collapse: USDD stablecoin below $0.97, reserve collateral drained

#23

Post by xiphias2 »

usr1106 wrote: post #18
throw6383878 wrote: post #8

Earlier quoted context omitted.

Crypto is the only reliable way to pay contractors in Russia now. Saying "no real value" is quite stretch!

The question is whether paying contractors in Russia is ethically any better than paying illegal drugs. Not that the contractors would all be bad people. But sanctions are there to force change. The easier it is to make sanctions ineffective the longer change will take.

Sanctioning a government fighting a war is very different from sanctioning people who want to engage in the economy without violence.

I would argue the more the economic exchange to violence ratio is between two groups, the better it is for both groups (maybe not the leaders)

Re: USDD/Tron near collapse: USDD stablecoin below $0.97, reserve collateral drained

#24

Post by black_13 »

throw6383878 wrote: post #8
louwrentius wrote: post #5

I would actually be surprised if the whole crypto ecosystem isn’t going to implode soon. The thing is that it doesn’t create any value, it’s all a game of musical chairs. I don’t care VCs holding the bags, but I do care about the retail “investors” that were naive. (I don’t care about the hfsp bros). In a few years we will look back at the crypto space and we wonder why nobody intervened like nobody intervened with M…

Crypto is the only reliable way to pay contractors in Russia now. Saying "no real value" is quite stretch!

No post body was provided.

Re: USDD/Tron near collapse: USDD stablecoin below $0.97, reserve collateral drained

#25

Post by jmyeet »

janalsncm wrote: post #11

What is the purpose of “stable” coins? If you want a thing that is worth a dollar, why not just use dollars? Or use Belize dollars. They’re worth $0.50 by law and have no instability issues.

This is the oracle problem. The guarantees of blockchain and smart contracts only work with things on the blockchain. You can’t put US dollars on the blockchain obviously so you create a cryptocurrency that is on the blockchain and peg it to the US dollar.

In reality you haven’t solved anything because there’s a trust element. It’s just moved. Also you need deep reserves to maintain a peg. There have been several attempts at an algorithmic stablecoin but they’ve had a tendency to collapse spectacularly.

Maintaining a peg in the real world is tricky too. Real world pegs can and do fail.

Re: USDD/Tron near collapse: USDD stablecoin below $0.97, reserve collateral drained

#26

Post by throw6383878 »

usr1106 wrote: post #18
throw6383878 wrote: post #8

Earlier quoted context omitted.

Crypto is the only reliable way to pay contractors in Russia now. Saying "no real value" is quite stretch!

The question is whether paying contractors in Russia is ethically any better than paying illegal drugs. Not that the contractors would all be bad people. But sanctions are there to force change. The easier it is to make sanctions ineffective the longer change will take.

US imports of Russian enriched uranium, platina, cobalt... are now highest in history. Please leave empty moralising out of this.

I am paying for programming services. Traditional banking system is unreliable, so I use crypto. Nothing illegal or unethical!

Re: USDD/Tron near collapse: USDD stablecoin below $0.97, reserve collateral drained

#27

Post by usr1106 »

xiphias2 wrote: post #23
usr1106 wrote: post #18

Earlier quoted context omitted.

The question is whether paying contractors in Russia is ethically any better than paying illegal drugs. Not that the contractors would all be bad people. But sanctions are there to force change. The easier it is to make sanctions ineffective the longer change will take.

Sanctioning a government fighting a war is very different from sanctioning people who want to engage in the economy without violence. I would argue the more the economic exchange to violence ratio is between two groups, the better it is for both groups (maybe not the leaders)

So you close Putin's and a couple of other credit cards and let everyone else continue a normal life? Maybe fairer to some individuals (like those already acting in opposition), but certainly a completely ineffective sanction.

Re: USDD/Tron near collapse: USDD stablecoin below $0.97, reserve collateral drained

#28

Post by rollcat »

nly wrote: post #20
janalsncm wrote: post #11

What is the purpose of “stable” coins? If you want a thing that is worth a dollar, why not just use dollars? Or use Belize dollars. They’re worth $0.50 by law and have no instability issues.

The problem isn't the concept, it's the backing. If the Fed were to announce an official USD stablecoin on Ethereum the chain could be used for international settlement. Of course, that will never happen as having the ability to restrict capital flows is a key power government wants to retain.

> The problem isn't the concept, it's the backing. If the Fed were to announce an official USD stablecoin [...]

This sits right next to the sibling poster's comment:

> The US dollar is regulated and it’s use and transfer crates all kind of legal issues [...]

It looks like people who want stablecoins can't even agree on why they want them.

Re: USDD/Tron near collapse: USDD stablecoin below $0.97, reserve collateral drained

#29

Post by nickez »

janalsncm wrote: post #11

What is the purpose of “stable” coins? If you want a thing that is worth a dollar, why not just use dollars? Or use Belize dollars. They’re worth $0.50 by law and have no instability issues.

Tax, if your country has capital gain tax you need to declare every single trade to real USD. When you are trading between crypto pairs you are not realizing any gain, thus you don't need to declare it. Until you eventually sell of course.

Re: USDD/Tron near collapse: USDD stablecoin below $0.97, reserve collateral drained

#30

Post by giantrobot »

xiphias2 wrote: post #23
usr1106 wrote: post #18

Earlier quoted context omitted.

The question is whether paying contractors in Russia is ethically any better than paying illegal drugs. Not that the contractors would all be bad people. But sanctions are there to force change. The easier it is to make sanctions ineffective the longer change will take.

Sanctioning a government fighting a war is very different from sanctioning people who want to engage in the economy without violence. I would argue the more the economic exchange to violence ratio is between two groups, the better it is for both groups (maybe not the leaders)

Except the government fighting a war is getting taxes from those people that just want to engage in the economy to fund its war effort. Sanctions are not perfect but they're a better tool than a shooting war.
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