The Blockchain created a new generation of capitalists, and this is their third or second baptism.
Their first was mtgox, I think?
Tether Withdrawals Top $10B
241–250 of 465 posts
Re: Tether Withdrawals Top $10B
#242Earlier 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…
If this was two weeks ago you most certainly would have included UST at the top of this list.
People reading this should definitely question the other ones on the list as well. what proof do we have that the rest of these coins are really stable?
Re: Tether Withdrawals Top $10B
#243Earlier 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.
Tether is the fuel for unlicensed unregulated exchanges that are happy to list the shit coins that legit exchanges won't touch because they're pump and dump scams. All those sketchy exchanges are almost certainly not keeping client funds segregated either so when Tether goes down all those exchanges will become insolvent and probably just disappear with the rest of the money.
Re: Tether Withdrawals Top $10B
#244Earlier quoted context omitted.
> All you need for a stable stablecoin is to save every dollar put in to it. That’s the issue right there. How does Tether save its dollars? We can see it in their transparency report[1]. Whether you believe them or not it’s not just cash in a bank account. * 0.41% Non-U.S. Treasury Bills * 55.53% U.S. Treasury Bills * 0.15% Reverse Repurchase Agreements * 5.81% Cash & Bank Deposits * 9.63% Money Market Funds * 28.47…
So the financial system is mostly reluctance ?
Well, friction in transactions, arbitrage, and collective belief in the value of an asset.
Re: Tether Withdrawals Top $10B
#245Earlier quoted context omitted.
What could you do with a USD stablecoin that you can't do with a regular old dollar? Other than let everyone see your transactions and account balances.
Why do you think any stablecoin exists? What need do they solve?
Right now they seem to mainly be used A) as a proxy for US dollars on crypto exchanges, and B) by their creators, to pump up the crypto markets.
Re: Tether Withdrawals Top $10B
#246Earlier quoted context omitted.
What could you do with a USD stablecoin that you can't do with a regular old dollar? Other than let everyone see your transactions and account balances.
Why do you think any stablecoin exists? What need do they solve?
at least somewhat its evading taxes/regulation
Re: Tether Withdrawals Top $10B
#247More importantly how is 70B still in it… Not opposed to crypto in general but tether always struck me as rather questionable even pre Luna Tera collapse
perhaps the 70B only exists denominated in USDT - ie, the only people not pulling money out are people who never put money in
and by people i mean exchanges who benefit from the printing of counterfeit dollars
Re: Tether Withdrawals Top $10B
#248Someone help me understand this. All you need for a stable stablecoin is to save every dollar put in to it. The people behind Tether sell tethers for $1, they save all of those dollars, and whenever the price of Tethers drops to $0.99, they buy tethers until the price is back up to $1. As long as they never spend anything from the reserve, this can't fail no matter how unpopular the currency is - they can back the cu…
> All you need for a stable stablecoin is to save every dollar put in to it. That’s the issue right there. How does Tether save its dollars? We can see it in their transparency report[1]. Whether you believe them or not it’s not just cash in a bank account. * 0.41% Non-U.S. Treasury Bills * 55.53% U.S. Treasury Bills * 0.15% Reverse Repurchase Agreements * 5.81% Cash & Bank Deposits * 9.63% Money Market Funds * 28.47…
Billions is a small number in the US Treasury market. They do not move the market with that kind of size.
Re: Tether Withdrawals Top $10B
#249Earlier quoted context omitted.
What could you do with a USD stablecoin that you can't do with a regular old dollar? Other than let everyone see your transactions and account balances.
Many things. A stablecoin that implements ERC20 interface can be used across Ethereum ecosystem and it’s smart contracts. You could even program your own smart contracts around the token, such as to setup a time lock or auction. Examples: converting it to another token on a decentralized exchange, purchasing an NFT, holding the token in a non-custodial wallet, holding the token in a multi-signatory wallet, participat…
[deleted]
Re: Tether Withdrawals Top $10B
#250Earlier quoted context omitted.
Yes that's basically how it works. When a corporation holds a loan as an asset on their balance sheet, they're supposed to mark that asset to market reflecting the risk of default. But if marking to market isn't actually enforced by auditors or regulators then the company can pretend that the asset value is the same as face value. This can appear to work for years until there's a recession and a bunch of borrowers de…
Ah, that makes sense. I'm curious though, how would auditors ensure the asset is marked to reflect the risk? If one organization thinks the risk is substantually lower than another, what do they mark? Or is there generally enough arbitrage that this doesn't happen.
Well it depends on the asset. If it's regular corporate bonds that are being actively traded on an open market (liquid) then just use a recent market price. If there's no market then valuation becomes highly subjective. If the borrower has some kind of credit rating from a trusted rating agency then that can be used as proxy for default risk. Or if the borrower is publicly traded and releases audited financial statements then you can estimate based on those. But if you don't have any of that then pick a number and try to get the auditors to swallow it.