$1M bounty for details on Tether’s backing • Hacker News Board

Re: $1M bounty for details on Tether’s backing

#321

Post by shukantpal » Sun, Oct 24, 2021, 2:19 PM UTC

JumpCrisscross wrote: post #272

shukantpal wrote: post #135

Earlier quoted context omitted.

You get paid immediately when opening a short position

> You get paid immediately when opening a short In what? By whom? If they go bust, you’re just another claim on a bankrupt estate.

If I short tether, I am borrowing tether and selling it immediately. I get the proceeds from the sale immediately.

The person who lent me the tether can be left holding the bag - I can't. That's because I, the short seller, am not owed anything but the counterparty.

It's like taking out a loan - if the bank goes bankrupt, you don't lose anything since you _still_ have the cash.

Re: $1M bounty for details on Tether’s backing

#322

Post by Breza » Sun, Oct 24, 2021, 6:56 PM UTC

jfrunyon wrote: post #205

ygjb wrote: post #85

Earlier quoted context omitted.

I am curious about how that type of activity doesn't constitute insider trading? Presumably having "bad news" would constitute material nonpublic information?

Because it's not nonpublic information. It's public information that no one else had put together the pieces on, yet. (Contrary to some of the other commenters, you don't have to be an insider yourself to run afoul of the law. If the information is not public and you got someone to leak it to you, for example. https://www.investor.gov/introduction-investing/investing-ba... )

Exactly. Did an oil company exec tell you that their sales are down before the earnings are released? That's insider trading. Did you hire a helicopter with a thermal camera to see how full their storage tanks are? That's perfectly legal.

Re: $1M bounty for details on Tether’s backing

#323

Post by Breza » Sun, Oct 24, 2021, 6:59 PM UTC

LittlePeter wrote: post #293

freeAgent wrote: post #172

Earlier quoted context omitted.

They'll certainly hold positions when they release any juicy findings they have.

$1 million is not that much, just for the sheer publicity Hindenburg gets. They're going to be quoted in WSJ, Economist, ... This brings new clients...

This is a good point. Dropping a million bucks on an ad campaign wouldn't get them this much publicity.

Re: $1M bounty for details on Tether’s backing

#324

Post by Breza » Sun, Oct 24, 2021, 7:02 PM UTC

rexstjohn wrote: post #12

Federal Reserve was crafted in a secret meeting on Jekyll Island ( https://en.m.wikipedia.org/wiki/Federal_Reserve ) between industry and government. Still exists and functions today. Lot of people don’t like it, but it’s there regardless. Even if the origin, operation of Tether is highly suspicious: if it functions, is widely adopted and does what is expected … may last longer than people think. Best response is mor…

The fights over the Bank of the United States and the Federal Reserve have been public and well documented. Congress has as much oversight as it wants to grant itself. That's very different from Tether.

Re: $1M bounty for details on Tether’s backing

#325

Post by Breza » Sun, Oct 24, 2021, 7:07 PM UTC

bduerst wrote: post #207

PKop wrote: post #138

Earlier quoted context omitted.

It's all tied together. If one asset class is crashing people sell others to grab cash. Another way, according to Janet Yellen, that Tether and other stables can destabalize markets, is that they have large portions of reserves in corporate debt, a crisis in these coins would cause a fire sale of billions of corporate debt they hold, itself probably cascading into all risk markets.

Crypto markets maybe, but not main indexes. Experienced financial players smell tether for the scam it is and don't touch it, or I'd they do, they're in on the grift. Laymen who bought the hype stand to lose a lot though.

My understanding is that Tether has bought a bunch of bonds and other financial instruments. If they need to raise cash, they would sell those instruments for whatever price they could get. That could lower the prices, which could have negative effects.

Re: $1M bounty for details on Tether’s backing

#326

Post by bduerst » Mon, Oct 25, 2021, 2:58 AM UTC

Breza wrote: post #325

bduerst wrote: post #207

Earlier quoted context omitted.

Crypto markets maybe, but not main indexes. Experienced financial players smell tether for the scam it is and don't touch it, or I'd they do, they're in on the grift. Laymen who bought the hype stand to lose a lot though.

My understanding is that Tether has bought a bunch of bonds and other financial instruments. If they need to raise cash, they would sell those instruments for whatever price they could get. That could lower the prices, which could have negative effects.

Tether keeps moving the buck. First it was all USD backing, then when pressed, they said they actually have it all in bonds/securities, which is just as nebulous and doesn't make it any more authenticated.

It's not verified by third parties at all, and they're printing non-stop, which is why many people can spot it for the scam it is.