Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Tether Withdrawals Top $10B

cnbc.com

Post reply on HN
Print view View original

461–465 of 465 posts

Re: Tether Withdrawals Top $10B

#461

Post by rglullis »

Combative268 wrote: post #435
rglullis wrote: post #121

Earlier quoted context omitted.

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…

100% agree to that list. I moved from USDT to USDC months ago. And now, that the exchange rate is very good i relocated around 80% on my stablecoins in EURS. My opinion with EURS and the company stasis that issue this stablecoin is very positive, simply no problems. I feel safe holding eurs cause it is backed with fiat money. Never liked the synthetic assets, so for the moment i am good with Eurs and Usdc for the eur…

Nice try, Stasis CEO...

Re: Tether Withdrawals Top $10B

#462

Post by lmm »

X6S1x6Okd1st wrote: post #453
lmm wrote: post #409

Earlier quoted context omitted.

Both of which are pretty big issues in the scenario we're talking about. When Tether crashes it will take down a significant chunk of the crypto world with it.

I wouldn't be surprised if congestion is extremely high on ETH if USDT collapses, but I'd be shocked if the chain started missing blocks. Do you think that USDC would depeg as well?

If the bid and offer are like $2 - $.50, do you consider that a "depeg" or not? I think liquidity will disappear, transaction fees will go to the moon, and there won't really be a meaningful "price" because trades won't be happening.

Re: Tether Withdrawals Top $10B

#463

Post by sudosysgen »

jerf wrote: post #458
sudosysgen wrote: post #451

Earlier quoted context omitted.

Because you can get interest on the fed paper from money that isn't yours? And if people redeem from you, just add a clause where if the liquidity pool is gone you have to wait X days before getting it redeemed.

It is yours. Again, you can't back with "deposits". If you have deposits, the depositors have a claim that encumbers the assets; you can't then "back" something with encumbered assets. You can only back a currency with unencumbered assets. And if you have unencumbered assets, why would you use them to back a currency?

Sure, I understand what you mean. It is still beneficial to the holder of deposits on which a small but nonzero yield is being received.

Re: Tether Withdrawals Top $10B

#464

Post by smoovb »

balefrost wrote: post #457
smoovb wrote: post #422

Earlier quoted context omitted.

The outcome was a $18.5 settlement with no admission of wrong doing. If there was really shady activity, would NYAG disclose it?

They did disclose it; it was in the press release: In the case of Tether, the company represented that each of its stablecoins were backed one-to-one by U.S. dollars in reserve. However, an investigation by the Office of the Attorney General (OAG) found that iFinex — the operator of Bitfinex — and Tether made false statements about the backing of the “tether” stablecoin, and about the movement of hundreds of millions…

Remember the NYAG wording is going to biased in their favor.

Reading between the lines - there was a period in the past where Tether was not fully backed. If Tether was still, as of today, not fully backed, would NYAG conclude this case?

I suspect the AG thought it had a bigger case involving ongoing fraud but settled as it could not find evidence of any ongoing false claims.

While biased in Tether's favor, worth a read: https://tether.to/en/stress-tests-resiliency-and-bank-runs/

Re: Tether Withdrawals Top $10B

#465

Post by phphphphp »

jules-jules wrote: post #103
phphphphp wrote: post #98

Earlier quoted context omitted.

Something I’ve been wondering is how Tether, which has a very difficult history of banking, has been able to pay out billions of dollars in USD in a few days (regardless of having it — even if they had it, I assumed it would be very difficult). Can you share how your USDT was redeemed — was it to USD from a US banking institution (a wire?) or some other mechanism? Thank you!

Their are principally using San Diego-based Silvergate Bank https://www.silvergate.com/

For future reference, Silvergate CEO has denied any relationship with Tether in a podcast: https://open.spotify.com/episode/02VtOivOHp3spZ2qOxMhdC
Post reply on HN