No way it blows up. Too many people have a vested interest in keeping it alive. Tether probably could have blown up years ago. At this point, there are definitely unseen and unknown backers who would prevent it.
When Tether Blows Up
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Re: When Tether Blows Up
#12Disagree. Everyone already knows about the Tether scam, so the risk is priced in. Nobody will really lose confidence as everyone expects it to blow up for a decade now. Secondly, people will just switch to USDC.
How is risk priced in if it’s trading for $1?
Re: When Tether Blows Up
#13No issue with the author but I wish I could filter HN to not have crypto related news here. It's really polluting my tech related feeds.
Re: When Tether Blows Up
#14As much as I have always had zero faith in Tether since the beginning I've also been reading about how it's going to blow up for about just as long. Here is an article from 5 years ago https://hackernoon.com/what-will-happen-when-the-shit-hits-t...
“The markets can stay irrational longer than you can stay solvent”
It’s hard to predict when things are going to fall apart. Archegos capital worked for quite a while until one day it didn’t.
Re: When Tether Blows Up
#15> Any exchange with USDT-denominated crypto prices will see those prices explode, as there will be few sellers of crypto for a soon-to-be-worthless asset.
This will also blow up arbitrage bots that move tokens between exchanges, as they quickly and automatically pour coins into a defaulted exchange. A fun “picking up pennies in front of a steamroller” risk in what’s supposed to be a risk free trade.
Re: When Tether Blows Up
#16No issue with the author but I wish I could filter HN to not have crypto related news here. It's really polluting my tech related feeds.
I agree so I just started flagging the crypto related news I see. The discussions rarely follow HN guidelines.
Re: When Tether Blows Up
#17No way it blows up. Too many people have a vested interest in keeping it alive. Tether probably could have blown up years ago. At this point, there are definitely unseen and unknown backers who would prevent it.
I think that’s probably true for some amount of correction, but presumably there’s some amount where the juice just isn’t worth the squeeze anymore, right?
A quick google search says there’s 14b tether in circulation - if that’s true and it falls 50%, who is going to put in multiple billions to try to prop it up?
Re: When Tether Blows Up
#18It won't be soon enough.
Re: When Tether Blows Up
#19No issue with the author but I wish I could filter HN to not have crypto related news here. It's really polluting my tech related feeds.
Big waste for great minds. But I guess it’s their choice.
Re: When Tether Blows Up
#20As much as I have always had zero faith in Tether since the beginning I've also been reading about how it's going to blow up for about just as long. Here is an article from 5 years ago https://hackernoon.com/what-will-happen-when-the-shit-hits-t...
Money was cheap then: it's not anymore. Default risk has finally reared its ugly head.