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Tether Withdrawals Top $10B

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Re: Tether Withdrawals Top $10B

#251

Post by horsecabletruck »

robonerd wrote: post #234
horsecabletruck wrote: post #213

Earlier quoted context omitted.

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…

Most of these are just "do a thing you can already do with money, but shittier"

No post body was provided.

Re: Tether Withdrawals Top $10B

#252

Post by __turbobrew__ »

spullara wrote: post #34
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?

Isn't the point of a stable coin is that it is always worth $1 each? So market cap is a valuation of $1 * total coins has gone down by $10B. So that means 10B coins were redeemed.

Only if the stablecoin operator isn’t lying about the backing.

Re: Tether Withdrawals Top $10B

#253

Post by X6S1x6Okd1st »

Important context if you want to start spinning what might happen if X:

> Tether reserves the right to delay the redemption or withdrawal of Tether Tokens if such delay is necessitated by the illiquidity or unavailability or loss of any Reserves held by Tether to back the Tether Tokens, and Tether reserves the right to redeem Tether Tokens by in-kind redemptions of securities and other assets held in the Reserves.

https://tether.to/en/legal/

Re: Tether Withdrawals Top $10B

#254

Post by mtremsal »

__turbobrew__ wrote: post #240
Geee wrote: post #180

Earlier quoted context omitted.

The problem is that it's not that simple to just park $80b on a bank account. The bank will use the money to buy bonds or give it out in mortgages to get interest on it. It's akin to kicking the can to the bank, and getting the money out might fail or be too slow. It's probably better to manage the reserve yourself, to be able to manage risk and liquidity properly, rather than outsource it to a bank.

It sounds like the only way to do this is to create your own bank which directly integrates with the federal reserve.

The banks used by crypto companies tend to be outside the US and have large crypto positions.

Re: Tether Withdrawals Top $10B

#255

Post by onlyrealcuzzo »

po wrote: post #46
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?

All the people responding to you are missing the distinction too... They can create/destroy coins at will. They say that they only do this when customers receive/withdraw fiat but we all know that's not the case and they aren't truthful about it.

Did anyone do an analysis on which wallets had the most coins destroyed?

Re: Tether Withdrawals Top $10B

#256

Post by jcranmer »

shadedtriangle wrote: post #218
ineptech wrote: post #154

Someone 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…

> What if the value of those assets is already below 1:1 because of recent market events?

The statistics you're bringing up are as of March 31. Do note that 6% of reserves are in "Other Investments (including digital tokens)", and Bitcoin (as a proxy for all cryptocurrencies) is down ~30% since then, so that's at least 2% of their assets that have been wiped out by market conditions. Keep in mind that said report also said that, as of March 31, liabilities are 99.8% of assets, so Tether's accounts says it should already be underwater.

(Although, if I'm reading the attestation correctly, all of the assets--including cryptocurrencies--are actually valued at purchase cost and not fair market value, so what the actual present value of those cryptocurrences is now or was 2 months ago is extremely unclear. Transparent is the opposite of how one could describe Tether's financials.)

Re: Tether Withdrawals Top $10B

#257

Post by ProjectArcturis »

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'd love to short Tether. How do I do that?

Re: Tether Withdrawals Top $10B

#258

Post by dxhdr »

xwolfi wrote: post #196
swamp40 wrote: post #185

Eventually, the US will figure this out and make a USD crypto that will be used as THE stablecoin. It seems obvious to me that a stablecoin needs a solid governmental backing, since there is no profit in it and you need unlimited deep pockets in case of a run. The advantage is then that the USD remains the world's premier reserve currency, even into the digital age.

W...why do you want something more digital than the existing system ? I dont want each dollar to be tracked from its infancy to where I spent it, I m quite fine with withdrawing my digital money back to cash at the ATM and spending it anonymously thereafter. The system is perfect, why change it to liquefy the dumb investment a few crypto lunatics made ?

> W...why do you want something more digital than the existing system ?

> The system is perfect

Still amazes me how conservative the HN crowd is when it comes to finance. Move fast and break things... except not the monetary system; that, is perfect.

Re: Tether Withdrawals Top $10B

#259

Post by vinyl7 »

robonerd wrote: post #234
horsecabletruck wrote: post #213

Earlier quoted context omitted.

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…

Most of these are just "do a thing you can already do with money, but shittier"

You know when theres a tech bubble when people are pushing pointless products
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