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Anyone Seen Tether’s Billions?

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Re: Anyone Seen Tether’s Billions?

#51

Post by pionar »

fleddr wrote: post #49
CPLX wrote: post #47

Earlier quoted context omitted.

I'll bite. What can I use Solana for?

Well, like all crypto you can buy it and hope it goes up in value :) But as for actual usage, it's a smart contracts blockchain that is fast, proof of stake, yet has drastically lower fees than Ethereum. Anything can be built on top of it but this particular rush was caused by a second hype wave of NFTs. As more people want to join the NFT frenzy, it got really expensive to mint one on Ethereum, hence people rushed t…

> Well, like all crypto you can buy it and hope it goes up in value :)

So, speculation. That's what all crypto is for.

Re: Anyone Seen Tether’s Billions?

#52

Post by CPLX »

fleddr wrote: post #49
CPLX wrote: post #47

Earlier quoted context omitted.

I'll bite. What can I use Solana for?

Well, like all crypto you can buy it and hope it goes up in value :) But as for actual usage, it's a smart contracts blockchain that is fast, proof of stake, yet has drastically lower fees than Ethereum. Anything can be built on top of it but this particular rush was caused by a second hype wave of NFTs. As more people want to join the NFT frenzy, it got really expensive to mint one on Ethereum, hence people rushed t…

Indeed. The only use case is gambling. Unregulated gambling at that.

The parent's comment's "For no reason at all except gambling" was implied and likely not confusing to the reader.

Also happens to pretty clearly answer the question of why people have extremely serious concerns about all this.

Re: Anyone Seen Tether’s Billions?

#53

Post by graeme »

rossdavidh wrote: post #22

The biggest news, buried near the bottom: "After I returned to the U.S., I obtained a document showing a detailed account of Tether Holdings’ reserves. It said they include billions of dollars of short-term loans to large Chinese companies—something money-market funds avoid. And that was before one of the country’s largest property developers, China Evergrande Group, started to collapse. I also learned that Tether ha…

Of note, Tether values their reserves at redemption value.

So if they have a loan to an insolvent company that trades at 25 cents to the dollar, Tether’s attestation values it at 100%.

See emphasis of matter, page 2 of their attestation

https://tether.to/wp-content/uploads/2021/08/tether_assuranc...

Re: Anyone Seen Tether’s Billions?

#54

Post by [deleted] »

fleddr wrote: post #46

"Solana, up 9,801% in 2021 for seemingly no reason at all" No reason at all, huh? Anybody with even a remote interest in crypto knows why Solana has exploded. It's L1 season and Solana is a direct competitor to ETH, which suffers from high usage fees. Every other L1 has exploded in value. As said, L1 season. These kind of statements make me suspect the author never used crypto in their life. The cultural gap between…

[deleted]

Re: Anyone Seen Tether’s Billions?

#57

Post by jkhdigital »

NelsonMinar wrote: post #38
shawabawa3 wrote: post #36

Earlier quoted context omitted.

It's trivially easy for anyone to short tether, simply take out a DeFi loan of tether backed by any other crypto collateral (including e.g. USDC so you don't have liquidation risk). It will just cost you a few % APR to keep the position open

I'm not sure I follow your short structure but you're mentioning other cryptocurrencies. Is there a clean bet where I sell Tethers and get dollars? (USDC are not dollars.)

So convert the USDC to dollars and withdraw the dollars. Done.

Re: Anyone Seen Tether’s Billions?

#59

Post by graeme »

jkhdigital wrote: post #57
NelsonMinar wrote: post #38

Earlier quoted context omitted.

I'm not sure I follow your short structure but you're mentioning other cryptocurrencies. Is there a clean bet where I sell Tethers and get dollars? (USDC are not dollars.)

So convert the USDC to dollars and withdraw the dollars. Done.

In the event Tether busts, the entire crypto markets will freeze up, and it’s plausible usdc will not be redeemable or face a run. USDC aren’t dollars and have been opaque about their backing. The bulk of their assets are in “cash and cash equivalents” which sound good, except they include less than 90 day commercial paper here! They also don’t state its quality or say how much of their cash/equivalents are CP rather than cash or treasuries.

Never been audited, only attestations

Re: Anyone Seen Tether’s Billions?

#60

Post by graeme »

ajkdhcb2 wrote: post #44

I find it ironic that people seem intent on holding Tether to a much higher standard than banks. I know there are certain legal guarantees applied to banks along with regulations, but all evidence points to Tether being in a much safer position than banks with their tiny fractional reserves. People are dissatisfied with anything less than fully-backed when it comes to 'crypto'.

Tether is more like a money market fund. It has much worse disclosure and much less stringent regulations than money market funds.

Money market funds are 100% backed

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