I don't have much understanding about Tether/Crypto.
You can go to Tether and they will give you 1 dollar for 1 USDT?
Then, who was selling 1 USDT for $0.95 ? Why didn't those people juts go to Tether and get 1 dollar for 1 USDT?
Tether starting to lose its peg too, after Terra did
581–590 of 976 posts
Re: Tether starting to lose its peg too, after Terra did
#582Earlier quoted context omitted.
I actually hate people disavowing themselves of responsibility here. While there is definitely some shady stuff in Crypto (particularly NFTs, which seem to be 99% scams), there's a certain level of personal responsibility required here. People saw the meteoric rise of Bitcoin and got a serious case of FOMO. Everyone wanted to be on the next Bitcoin. This, ultimately, is the American Dream: to get rich by doing nothin…
This mentality of blaming the victim can muddy the waters and make it easier for criminals to get off the hook though.
No one sets out to blame the victim, that's a stupid Reddit phrase that doesn't mean anything
Re: Tether starting to lose its peg too, after Terra did
#583The entire concept of a "stablecoin" reminds me a lot of something from SIGBOVIK 2014. Keep in mind, this was written in 2014, before any stablecoins actually existed, and that SIGBOVIK is supposed to be a joke conference where people present extremely silly ideas as if they were real breakthroughs. > DollarCoin: We propose skipping the middleman and providing direct proof-of-dollar with a blockchain that consists of…
The difference between Tether and DollarCoin is that you can (if nobody is lying) exchange a tether for a USD. If each USD that bought a tether was burned as in DollarCoin, then it wouldn't have that property. You're not supposed to "burn any money" when you mint tether, you're supposed to put aside $1 that can be exchanged for that tether at a later date. I think what you're missing is that backed stablecoins don't involve burning any money at all, so whether or not that'd be a good idea is irrelevant.
Re: Tether starting to lose its peg too, after Terra did
#584Earlier quoted context omitted.
there are some markets you can't participate in without holding usdt, so for some, it's a calculated risk why anyone would keep usdt if not actively trading is beyond me
"Yield farming" (covered puts) is why.
You can do yield farming/covered puts on a bunch of cryptocurrencies without USDT https://app.friktion.fi/
Re: Tether starting to lose its peg too, after Terra did
#585Earlier quoted context omitted.
> it is a religion to believe that cryptocurrencies are inherently better than other assets (outside NFTs) Why would NFTs be worth anything more than the digital tulip bulbs of cryptocurrencies? NFTs are just as worthless IMHO.
Well now you're getting into what 'worth' means. As a kid I had a bunch of baseball cards that Becketts said were 'worth' $X. I took them to the local shop and they would only pay some value NFTs are a bit like celebrity signatures. They are worth what someone will pay. If a celebrity verifiably digitally signs something and they only do it once, that is worth something to some people as a collectible. It is not wort…
You are aware that nft are a link stored in a database and not the picture or whatever. The picture is on a server and can be deleted.. btw did happen en mass.
Re: Tether starting to lose its peg too, after Terra did
#586The thing that I think some people miss about Tether is that it's not about whether it is backed enough it's either fully backed or it isn't. If it's not, it's not a question of whether it's back enough to weather this storm, it's about whether the people running it think they can weather this storm. If they think they can keep it running they'll sell whatever backing they have and keep the peg. But if they even thin…
And then, what are the odds they have already taken the money they plan to take.
Re: Tether starting to lose its peg too, after Terra did
#587Earlier quoted context omitted.
> Consider that being "nakedly" unbacked (no underlying assets) in any meaningful capacity would qualify Tether's leadership for a quick trip to prison — as they've repeatedly said they were fully backed. They said on their website they were regularly audited, too, and never completed one. There’s years worth of clear lies from Tether.
They did internal audits but not external ones, which of course it's what everyone assumes
They claim they did, but the problem is trust. If they were dishonest about their collateralization there's no reason the believe they'd be honest about the audit results. And the firm they hired is itself under investigation.
They'd have to be much more open to convince me they're as well backed as they claim.
Re: Tether starting to lose its peg too, after Terra did
#588The entire concept of a "stablecoin" reminds me a lot of something from SIGBOVIK 2014. Keep in mind, this was written in 2014, before any stablecoins actually existed, and that SIGBOVIK is supposed to be a joke conference where people present extremely silly ideas as if they were real breakthroughs. > DollarCoin: We propose skipping the middleman and providing direct proof-of-dollar with a blockchain that consists of…
The difference between Tether and DollarCoin is that you can (if nobody is lying) exchange a tether for a USD. If each USD that bought a tether was burned as in DollarCoin, then it wouldn't have that property. You're not supposed to "burn any money" when you mint tether, you're supposed to put aside $1 that can be exchanged for that tether at a later date. I think what you're missing is that backed stablecoins don't…
Only institutions can exchange their tether for $$. They scrubbed the 1:1 claim from their website long ago
Re: Tether starting to lose its peg too, after Terra did
#589Earlier quoted context omitted.
I actually hate people disavowing themselves of responsibility here. While there is definitely some shady stuff in Crypto (particularly NFTs, which seem to be 99% scams), there's a certain level of personal responsibility required here. People saw the meteoric rise of Bitcoin and got a serious case of FOMO. Everyone wanted to be on the next Bitcoin. This, ultimately, is the American Dream: to get rich by doing nothin…
The reasons this is nonsense are twofold: First, I have never actually seen any comments here disavowing themselves of responsibility. It is always aimed at protecting others and this is rooted in the obvious fact that a very large number of people are not (and we do not expect them to be) experts in investment. That assets can go up or down is one thing, and nobody can be protected from that, but there is an extensi…
> First, I have never actually seen any comments here disavowing themselves of responsibility.
Pulling from the comment I was replying to:
> ... many poorer and financially illeterate people have been tricked ...
That's quite literally disavowing responsibility.
> ... but there is an extensive body of law intended to protect people from outright falsehoods
This is true and the law hasn't quite caught up to crypto scams but think about it this way: even if the scammers get prosecuted--possibly even go to jail--you're 99% likely never getting your money back. And even if you do it'll probably be after wasting years on the effort. Obviously there's a deterrence value to prosecuting scammers and I support that hpappening but you'll almost never get your money back.
> Maintaining a certain level of trust is a pool from which we can all draw. It has in fact been shown that growth in low trust economies is systematically lower than in high trust economies.
I 100% agree and this is something that libertarians and anarchists gloss over completely.
Re: Tether starting to lose its peg too, after Terra did
#590The entire concept of a "stablecoin" reminds me a lot of something from SIGBOVIK 2014. Keep in mind, this was written in 2014, before any stablecoins actually existed, and that SIGBOVIK is supposed to be a joke conference where people present extremely silly ideas as if they were real breakthroughs. > DollarCoin: We propose skipping the middleman and providing direct proof-of-dollar with a blockchain that consists of…
DollarCoin is the best summary of proof-of-work that I've ever seen. Just replace "burning US $1 notes" with "burning [x] Watts-hour of electricity" and it describes Bitcoin to a T.