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> Shorting Tether is a great play Why do you think there will be a functioning market to pay you out if and when it collapses?
You get paid immediately when opening a short position
How can one profit from a crypto bubble? I’ve heard of an ETF for shorting Bitcoin but never saw any specifics. Can anyone provide a reputable brokerage for shorting crypto currencies?
short sell MicroStrategy (mstr), they are pegged to crypto because they decided to hold large amounts of crypto as a corporation New crypto ETF is also right around the corner. There will definitely be futures on that.
WTH? Why does a company with a $7b market cap need over $2b of "treasury reserve assets"?
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What guarantees that everyone would sell that Bitcoin for USD?
If those people wanted to hold BTC, they'd have been holding it in the first place, instead of USDT.
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>...holding a fraction of deposited money as reserves... US banks haven't had reserve requirements since March 2020. https://www.federalreserve.gov/monetarypolicy/reservereq.htm
And yet their assets:liabilities ratio is still approximately "#DIV/0!" times that of Tether.
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There are firms that look for good opportunities to short stocks. Find some credible bad news, short the stock, then publicize the bad news. If the news is actually true, this might even be considered a public service (as well as obviously a way to make money). They probably wouldn’t do until they actually got a tip. Also, they might short crypto-related stocks if that’s easier.
This is how markets weed out the bad ones on their own, without relying on government.
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Exactly. Tether has some amazing alternatives. DAI for example.
DAI is critically dependent on USDC. USDC recently received a Wells notice from SEC and had to amend their reserves. Still weird behaviour from them overall: they don’t disclose what their short term commercial paper is, its rating or how much of their cash equivalents it us. Just today in the financial times Tether claimed USDC also issues USDCs backed by crypto. And they have funny printing patterns: whenever Tethe…
I noticed that, specially recently. What's going on?
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> a 5% drop in the price of Bitcoin would make Tether literally insolvent. Didnt BTC go down to 30K from 60K just recently?
Your point being? There are many, many ways for businesses to hide their insolvency, for years[1], or even decades[2]. [1] https://en.wikipedia.org/wiki/Wirecard#Scandal_and_insolvenc... [2] https://en.wikipedia.org/wiki/Madoff_investment_scandal
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If those people wanted to hold BTC, they'd have been holding it in the first place, instead of USDT.
They also may cash out to another fiat currency, no? I also am not sure I agree that they would all even cash out to fiat. I was asking what are the guarantees that they would cash out to USD, considering that why they may be holding USDT in the first place is to avoid US regulation? Something else to consider is that Tether is also more popular outside of the US. I'm just saying that I think it's an assumption that…
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I'm not sure you guys get this: Tether is the reason it comes back. Tether drove the 2017 bubble (this is when Bitfinex'd got their start) and has driven the 2021 bubble to the tune of $70b. This resilience wouldn't exist without Tether.
If I have to believe the research on the 2017 pump, tether had a 50% role in it. I'm not sure how much 70b does for today's market cap. Surely it's significant, but it would be an exaggeration to say there would be no demand without tether. In the end, it doesn't matter. You can make money in crypto whether it goes down, up or is scalping.
Diminishing returns to pumping.
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>Hindenburg is the real deal. Hindenburg is not the real deal. If you think Hindenburg is the real deal you should pay closer attention to their activities. They (he) are one of a number of noisy short sellers who try to drive stock prices with their tweets/reports. SEC should be doing things to these people. That said, he is probably right about Tether. Tether should make every crypto speculator or holder very nervo…
Oh? Why should the SEC do anything? If it's wrong to talk about a company in hopes of affecting the stock price, shouldn't Elon Musk be doing hard time?
2. SEC did something to Musk, maybe you forgot, maybe you don't think it was enough, but they did something.