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Tether Withdrawals Top $10B

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Re: Tether Withdrawals Top $10B

#101

Post by TomSwirly »

askmike wrote: post #92
Ekaros wrote: post #74

Earlier quoted context omitted.

It is specially relevant to get out as there is no upside or very minimal upside... Why ever hold tether... If real money is an option.

USDT is the fuel that powers a lot the crypto ecosystem. Good luck trying to move USD around between different places in the crypto ecosystem (especially outside office hours). While possible it's complicated, slow and has terrible uptime. The biggest crypto markets in the world are quoted in tether.

Your answer is not false, but does not explain why someone would hold Tether instead of using it as an intermediate vehicle.

Re: Tether Withdrawals Top $10B

#102

Post by TomSwirly »

arcticbull wrote: post #61
tamrix wrote: post #52

Earlier quoted context omitted.

Quoted post unavailable.

This is honestly the most asinine remark. Tethers are supposed to be backed by $1 in assets. You're complaining that dollars are created out of nothing - they're not, of course, but even if they were: When Tether holds less than $1 of backing assets for each $1 of USDT in circulation it's worth strictly less than the $1 you're deriding. It is this gap we're talking about. So your comment isn't just wrong, it's comple…

> This is honestly the most asinine remark.

Openings like this are not a precursor for anything good, and indeed:

> You're complaining that dollars are created out of nothing - they're not, of course,

No, not "of course". (These conversations would be so much more interesting if people had even a basic knowledge of finance, or a little less ego.)

In fact, Tether increases the US dollar money supply in exactly the same way that Eurodollars do: https://www.investopedia.com/terms/e/eurodollar.asp

(Fractional reserve banking also "creates" dollars.)

Source: spent years writing mathematical models for options and other derivatives on Wall Street before I decided it was evil.

Re: Tether Withdrawals Top $10B

#103

Post by jules-jules »

phphphphp wrote: post #98
askmike wrote: post #93

Earlier quoted context omitted.

This really dips into conspiracy levels: Tether has many customers who can redeem USDT for real dollars. Many companies do this and are very open/vocal about this. Our company has done this as recent as late last week.

Something I’ve been wondering is how Tether, which has a very difficult history of banking, has been able to pay out billions of dollars in USD in a few days (regardless of having it — even if they had it, I assumed it would be very difficult). Can you share how your USDT was redeemed — was it to USD from a US banking institution (a wire?) or some other mechanism? Thank you!

Their are principally using San Diego-based Silvergate Bank

https://www.silvergate.com/

Re: Tether Withdrawals Top $10B

#104

Post by jules-jules »

retube wrote: post #78
stingraycharles wrote: post #28

Am 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?

well it's not due to price changes, 1 USDT = 1$, so yes there are less coins in circulation. Poster below says Tether can create and destroy coins at will. They can certainly create them, not sure they can destroy them if in others wallets (and doing so would be a huge adverse news event). If they have destroyed coins can only be their own (in their own wallets) but I suspect that would also be transparent. My feelin…

They most certainly can't destroy USDT sitting in other people's wallets.

Re: Tether Withdrawals Top $10B

#107

Post by dougmsmith »

ProfXponent wrote: post #83
sgammon wrote: post #5

glad to see hn isn’t buying it but retail investors may not be so lucky.

HN’s track record on stuff like this is really bad. This is a place to get interesting news on startup valuations, Rust, and what the current FE framework of choice is. For everything else it might as well be Reddit.

No post body was provided.

Re: Tether Withdrawals Top $10B

#108

Post by dougmsmith »

drumhead wrote: post #64

We're in the get out while you still can phase. At some point they'll suspend conversion and holders will be stuck with something virtually worthless. It's like watching a landslide in its early stages, as soon as enough people realise what's going on it's going to be too late.

No post body was provided.

Re: Tether Withdrawals Top $10B

#109

Post by alisiddiq »

sickmate wrote: post #100
User23 wrote: post #77

Earlier quoted context omitted.

How do you structure that trade such that it pays out when tether collapses?

I've never shorted or taken out crypto loans, but you could theoretically: - Take out a loan of USDT, using a stablecoin you trust as collateral - Immediately trade all USDT into your stablecoin - If the USDT price crashes, buy it up to repay the loan. e.g. Binance lets you borrow 800k USDT with 1.23m collateral. Over 180 days, interest paid would be 36k. Say USDT crashes and you repay your loan at 10c/USDT - you wou…

What happens if Binance goes under because of this tether crash?

Re: Tether Withdrawals Top $10B

#110

Post by Proven »

drumhead wrote: post #64

We're in the get out while you still can phase. At some point they'll suspend conversion and holders will be stuck with something virtually worthless. It's like watching a landslide in its early stages, as soon as enough people realise what's going on it's going to be too late.

No post body was provided.
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