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Tether Withdrawals Top $10B

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Re: Tether Withdrawals Top $10B

#31

Post by Tao332 »

medo-bear wrote: post #11
thematrixturtle wrote: post #6

> “Whenever there’s a failure or a catastrophe in crypto, the fear is always that someone will misread the situation and overcorrect in a position that’s not helpful for the entire community writ large,” This statement is all kinds of amazing: * Casual use of the phrase "whenever there's a catastrophe in crypto", since there really is one every few days * "Misread the situation and overcorrect" --> read: taking their…

> This statement is all kinds of amazing: > Casual use of the phrase "whenever there's a catastrophe in crypto", since there really is one every few days in some sense crypto's resiliance against so many catastrophies is amazing. if this was USD we would be at WW10 and two October revolutions by now

It's not resilient. It's worthless. The same grift keeps working on bigger fools and it hasn't been outlawed yet. Ergo, it stays and cycles from one catastrophe to the next.

> if this was USD we would be at WW10 and two October revolutions by now

This is the farthest reach I've ever seen someone make to state a positive about crypto.

Re: Tether Withdrawals Top $10B

#32

Post by pharmakom »

dsl wrote: post #25
0xy wrote: post #7

The most concerning thing to me about Tether is they appear to own Chinese corporate debt for some unknown reason. Isn't that an insane amount of risk? In what universe is Chinese corporate debt even remotely liquid? It could be invested in Evergrande-adjacent companies for all we know. And you know when push comes to shove the Chinese government will throw foreign investors under the bus first.

The “too big to fail” businesses ended up being the best investments in the US. Commercial debt in China is guaranteed by proxy of the whole Chinese economy, because the government has direct ownership. The Chinese economy is in turn stabilized by the fact everything from your toothbrush to your car tires are made in China or using raw materials they control.

China has the factories but they are hugely dependent on imports of materials and energy; technology from overseas companies; and overseas markets to export to. Throw in their demographics - which are less suited to manufacturing every year - and there could be serious problems for China on the horizon. I hope it leads to a more humane CCP.

Re: Tether Withdrawals Top $10B

#33

Post by bhouston »

suyula wrote: post #21

Wasn't Tether the one that was revealed to have only had enough backing for like 3% of its coins a few months ago? Surely that must be drying up now.

They likely have backing of more than 50% probably more than 80%. Although how much is liquid is unknown.

Re: Tether Withdrawals Top $10B

#34

Post by spullara »

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.

Re: Tether Withdrawals Top $10B

#35

Post by WJW »

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?

Since the valuation is steady at $1, that means the total amount of coins must have decreased by 10 billion. Since the only way to remove coins is to convert them back out to USD (ie, 'withdrawing') there is not much of a distinction there.

Re: Tether Withdrawals Top $10B

#36

Post by cormacrelf »

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?

It's tether. It did briefly detach from its peg at USD $1 but the "valuation" of a coin has been roughly constant. It's $10bn out of originally $83bn, and it's still trading at $0.998 or so. So yeah, people have taken a big chunk of money out. That's called a withdrawal. We do not know that it is a cash withdrawal.

Re: Tether Withdrawals Top $10B

#37

Post by manquer »

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?

Tether is stable coin. Number of coins is valuation. Each coin is always 1USD (unless they loose the peg).

So if 84 billion coins are there in circulation . 84 billion of dollars had been exchanged for coins . If the coins reduces to 73 billion then 11 billion coins have been redeemed back to dollars

Re: Tether Withdrawals Top $10B

#39

Post by xiphias2 »

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?

It’s a stable coin, so valuation is expected to be close to $1 as long as it works.

Re: Tether Withdrawals Top $10B

#40

Post by londons_explore »

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?

Tether is pegged to the US dollar, so it's valuation (rarely) differs much from $1.

Therefore it's the number of total coins which is falling.

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