Can somebody explain why the NYAG required that they publish quarterly attestations given how little reliable information they actually provide? What was the point?
Tether Required Recapitalization in May 2022
61–70 of 336 posts
Re: Tether Required Recapitalization in May 2022
#62I think Tether is the ultimate "Fake it till you make it" organization in crypto. Its kind of a joke now but everyone is in on the joke but it will probably end up being the defacto crypto parking place once things get real in crypto (e.g. you can buy a house with it) and the adults come in and shake out the current management.
It's not a matter of being a joke. It's a matter of being criminals . Besides, Coinbase/Circle is already miles ahead in this race for institutional credibility.
Coinbase, the company that freezes accounts whenever the market gets more volatile?
Re: Tether Required Recapitalization in May 2022
#63> As of this writing, on May 20th, it has yet to regain the peg This is misleading. Tether has consistently traded between $0.998 and $0.999 between May 13th and May 20th. See https://coinmarketcap.com/currencies/tether/ Is it trading at 0.1% lower than it was before the Terra USD collapse? Yes. Has it "lost its peg"? No.
It’s not just 0.1% off the peg. It’s 0.1% off and facing large redemptions. That makes the peg loss seem significant
The large redemptions are what is causing them to be 0.1% off the peg...
Re: Tether Required Recapitalization in May 2022
#64Earlier quoted context omitted.
It's such a weird "bet", though. Pay $1, get back $1 if you win, get back $0 if you lose.
If you just sit in Tether sure, but the ecosystem of stablecoins gives you access to DeFi yield opportunities with much better "passive" interest than bank deposits or treasuries, so the bet is a little more sophisticated than dollar for dollar.
The "DeFi yield opportunities" of today were the HYIP ponzis of years past.
Re: Tether Required Recapitalization in May 2022
#65Is this what the earlier "hash drop" tweet [0] was about? [0] https://twitter.com/patio11/status/1527616238586716160
Re: Tether Required Recapitalization in May 2022
#66I think Tether is the ultimate "Fake it till you make it" organization in crypto. Its kind of a joke now but everyone is in on the joke but it will probably end up being the defacto crypto parking place once things get real in crypto (e.g. you can buy a house with it) and the adults come in and shake out the current management.
> once things get real in crypto (e.g. you can buy a house with it) it feels odd to speak about this scenario like it's a foregone conclusion.
It doesn't even make sense in many cases. Bitcoin for example will never be useful as a medium of general exchange, the transaction volume is way too low to support it. Plus its deflationary nature makes it at odds with a healthy economy, where you want gradual inflation to at least exceed the birthrate so there is a hope of lifting people out of poverty.
The workaround is to put everything on exchanges, but then you've lost the decentralized nature of Bitcoin and you are back to just a central database owned by a company, AKA a bank.
Re: Tether Required Recapitalization in May 2022
#67The most important point in this article is that whether Tether is fully collateralized ultimately doesn't matter. As long as there are well-capitalized parties (Bitfinex, other exchanges) that want to prop up Tether, it will be fine. Nobody should be under the illusion that Tether is decentralized or anything other than a bet on Bitfinex.
As long as there are well-capitalized parties that want to prop up the UK Pound, it will be fine. Whoops.
https://www.investopedia.com/ask/answers/08/george-soros-ban...
Re: Tether Required Recapitalization in May 2022
#68silly question, being USDT "only" 80B, why does it matter if it collapses? considering cryptos market cap is more than 1T, and 100B's wipeouts routine, sometimes during crypto winters (where we observe -80% across the board) or collapses such as Luna recently (>50B? no idea) Of course, panic would happen, but still. I think people would move on, forget, and continue believing whatever they want to just curious to rea…
People need tether to avoid going all the way off chain when they sell.
Re: Tether Required Recapitalization in May 2022
#69Earlier quoted context omitted.
You mean any stable coin that is _not_ 1-1 backed?
No, once you have leverage the ratio doesn't matter anymore. It's just whoever has deeper pockets wins.
If Tether is fully collateralized, then if you sell Tether below 1, the buyer can redeem it for $1 and make an arbitrage profit.
The usual expectation is that arbitrage opportunities vanish as the rush of risk-free profit takers closes the price gap. As such, it doesn't matter what other participants are in the market; the arbitrage buyer is always going to be the best bid below 1.
You might see temporary breaks from the arbitrage-free price due to liquidity (e.g. in a thin market, there might not be enough buyers initially).
If you keep selling, you'll eventually get to a situation where no Tether are in circulation, but every last Tether will sell for ~1.
How do you get the idea that leverage matters here?
Re: Tether Required Recapitalization in May 2022
#70Earlier quoted context omitted.
1 BTC = 1 BTC, just like 1 Monopoly dollar = 1 Monopoly dollar. Too bad I can't trade either for most goods/services/taxes.
There is a decent circular economy growing around bitcoin, at the very least you can purchase gift cards with them which hold dollar amounts to get whichever services you'd like!
Is there though? Where can I use Bitcoin to buy gift cards redeemable for: milk, underwear, dentist, train tickets, a visit to the barber? ( These being the five everyday purchases I last made.)