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Tether Withdrawals Top $10B

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Re: Tether Withdrawals Top $10B

#131

Post by kd913 »

rglullis wrote: post #121
askmike wrote: post #92

Earlier quoted context omitted.

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.

Fiat-backed, collaterized stable coins that are better than USDT - USDC (Circle USD) - GUSD (Gemini USD) - BUSD (Binance USD) - EURS (Stasis EUR) Crypto backed (overcollaterized) stable coins that are soft-pegged and better than USDT - DAI (MakerDAO) - sUSD (Synthetix USD) - sEUR (Synthetix EUR) No one needs USDT anymore. The fact that even Binance gets more credibility than Tether should tell you how scammy the peop…

This casually ignores the point being made. Tether is a fuel. USDT printed money without backing and pumped it into exchanges/btc/eth.

Without that upward pressure, there will be nothing preventing btc/eth from freefalling. Heck without that, what is the point of the above coins either.

Re: Tether Withdrawals Top $10B

#132

Post by rglullis »

kd913 wrote: post #131
rglullis wrote: post #121

Earlier quoted context omitted.

Fiat-backed, collaterized stable coins that are better than USDT - USDC (Circle USD) - GUSD (Gemini USD) - BUSD (Binance USD) - EURS (Stasis EUR) Crypto backed (overcollaterized) stable coins that are soft-pegged and better than USDT - DAI (MakerDAO) - sUSD (Synthetix USD) - sEUR (Synthetix EUR) No one needs USDT anymore. The fact that even Binance gets more credibility than Tether should tell you how scammy the peop…

This casually ignores the point being made. Tether is a fuel. USDT printed money without backing and pumped it into exchanges/btc/eth. Without that upward pressure, there will be nothing preventing btc/eth from freefalling. Heck without that, what is the point of the above coins either.

"Proper" stable coins are still important (at least for me who still would like to see crypto as a viable alternative for payments), and at this point I am honestly hoping for USDT and BTC collapsing.

ETH's price is still unfortunately too correlated with BTC, so it will also fall down a lot when BTC comes under, but as long as the price of ETH is high enough to secure the network, it is not a problem.

Re: Tether Withdrawals Top $10B

#133

Post by alasdair_ »

anm89 wrote: post #99
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.

And I assume you are substantially short these markets then given that you know this for a fact and it's trivially easy to become wealthy one you know this for a fact? I don't even disagree that there are potentially major issues here but stating this as a fact is just silly.

I wonder how easy it is to actually short Tether assuming the likely scenario where USDT goes the way of UST and trading is effectively halted. How does one cover their short when no trading is possible? In a regular exchange, there are rules about how to handle this but I'm not clear how it happens with crypto.

Re: Tether Withdrawals Top $10B

#134

Post by alasdair_ »

louloulou wrote: post #75

Quoted post unavailable.

How, exactly?

I know it seems simple to short Tether, but in practice there doesn't seem to be a safe way to do it such that if the value plummets to almost zero (and takes much of the crypto ecosystem with it, including some exchanges) you could actually guarantee you'd get paid in US dollars at the end of it all without a long lockup period.

You could do something like buy Coinbase puts or something, but there is so much volatility baked in already, and there is no guarantee that (say) Coinbase actually falls if Tether does.

If you can think of a pure Tether short that still will work if trading is halted and exchanges fail, I'd love to hear about it.

Re: Tether Withdrawals Top $10B

#135

Post by alasdair_ »

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…

>- If the USDT price crashes, buy it up to repay the loan.

What happens if trading is effectively halted, so it's simply no possible to buy the USDT back later?

Re: Tether Withdrawals Top $10B

#136

Post by danaris »

dougmsmith wrote: post #125
rglullis wrote: post #122

Earlier quoted context omitted.

Are you really trying to defend Tether by saying they are no different than the banks and that they are applying the same tactics from the fiat-system? By your own standard, if the existing system is so broken and morally corrupt, why do you think it is right to defend Tether? Tether started with the promise they were fully 1:1 backed with USD. They broke this promise. Later they came up with "collaterized with a bas…

Quoted post unavailable.

No, this is not a Taco Bell. This is HackerNews, and while it may not be exactly a graduate-level economics classroom, we do try to have serious discussions here. You are not adding to that in any way.

If you think that something someone says is wrong, then address it (and/or downvote). If you think that something someone says is breaking the rules, flag it.

Don't mock the very idea of meaningful discussion just because you don't like what someone trying to be sincere says.

Re: Tether Withdrawals Top $10B

#137

Post by danaris »

louloulou wrote: post #75

Quoted post unavailable.

Is a financial market the only place you can imagine someone expressing themselves "sincerely"?

Can you not imagine that someone could feel that Tether is likely to fall to zero, and, oh, say, not want to legitimize the cryptocurrency ecosystem by putting any money into it?

Or even (gasp) not have thousands or tens of thousands of dollars to throw around on legalized gambling?

Re: Tether Withdrawals Top $10B

#139

Post by dougmsmith »

danaris wrote: post #136
dougmsmith wrote: post #125

Earlier quoted context omitted.

Quoted post unavailable.

No, this is not a Taco Bell. This is HackerNews, and while it may not be exactly a graduate-level economics classroom, we do try to have serious discussions here. You are not adding to that in any way. If you think that something someone says is wrong, then address it (and/or downvote). If you think that something someone says is breaking the rules, flag it. Don't mock the very idea of meaningful discussion just beca…

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