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Tether starting to lose its peg too, after Terra did

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Re: Tether starting to lose its peg too, after Terra did

#851

Post by beambot »

ttul wrote: post #798
influxmoment wrote: post #658

Earlier quoted context omitted.

Tether and UST are not comparable. Tether is a token you can redeem for USD with a questionable past. UST is a project started by a scammer. An algorithmic stablecoin. A Ponzi uses a Ponzi to prop up the price. And then head scammer used personal money to keep the charade going

If Tether isn’t a Ponzi scheme, why have they never subjected themselves to a real audit on their reserves? You know the one thing that you’ll find in common with every Ponzi scheme? There is no auditing.

Pentagon has never passed an audit, and the Fed manages to have giant ($Trillion) "secret" activities that manage not to hit their audits [1]. Are they a Ponzi too?

[1] https://theweek.com/articles/479867/federal-reserves-breatht...

Re: Tether starting to lose its peg too, after Terra did

#852

Post by gnopgnip »

frostwarrior wrote: post #643
Traster wrote: post #558

The 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…

Serious question, how can you sue over this kind of thing? I thought the whole point of crypto is that it's not regulated. And that also meant that if you got screwed then you are SOL.

You don’t get to just decide that regulation doesn’t apply. The SEC can decide to regulate you, for offering a security or fraudulent statement later for instance

Re: Tether starting to lose its peg too, after Terra did

#853

Post by stolsvik »

turtledove wrote: post #59
rtpg wrote: post #32

Earlier quoted context omitted.

You need to show up with $100k to do the redemption. Granted if you did the round trip with only $10k you’re looking at peanuts in arbitrage but it _is_ a way for them to prevent real arbitrage that feeds into itself. I bet the fact that people wanting to short don’t believe they have the funds doesn’t help. But hey if you are a millionaire short tether might be worth setting up the recurring trade out!

So wait, assuming I had a hundred k, and they were willing and able to pay out, I could buy 97k of tether and redeem it for 100k? Just an instant 3% return? This seems like there's no way they are opening themselves up to arbitrage like this.

That’s at least what the CTO of Tether is suggesting: https://twitter.com/paoloardoino/status/1524413029898719234

Re: Tether starting to lose its peg too, after Terra did

#854

Post by diob »

jmyeet wrote: post #455
shafyy wrote: post #55

Earlier quoted context omitted.

> If you've been honestly working on the assumption that it is, then you deserve to lose your (real) money to some crypto VCs on an island somewhere. The sad reality is that many poorer and financially illeterate people have been tricked by VCs and other grifters into this with billions of dollars spent in advertising. So, no, they don't deserve to lose their money to these assholes. These assholes need to be prosecu…

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…

I think you're overestimating humanity here. There's a reason gambling is typically so controlled / limited. Have some empathy for those who might be a little less "smart" than yourself, ultimately we're just fancy animals.

Re: Tether starting to lose its peg too, after Terra did

#855

Post by diob »

eric_cc wrote: post #771
Mvandenbergh wrote: post #472

Earlier quoted context omitted.

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…

> people are not (and we do not expect them to be) experts in investment. So then they should stay out of the game. I totally disagree that we need a bunch of bullshit laws protecting people from poor decision making.

Yeah, let's eliminate all regulations. Some of you may die, but that's a risk I'm willing to take /s

I mentioned it to another, but have some humanity and empathy for those less "smart" than yourself.

Re: Tether starting to lose its peg too, after Terra did

#856

Post by r00fus »

Animats wrote: post #180

Tether is back up to around $0.98, but volume is high. Somebody is pouring cash into Tether to support the price. Similar over at UST. Price is back up to $0.60, but volume is far above normal. Remember, with a stablecoin, there is no upside to holding . Any indication of risk means it's time to get out. Even if Tether has enough reserves to get the price back to $1, there will be substantial cashing out. That's why…

Is there a way to short USDT?

Re: Tether starting to lose its peg too, after Terra did

#857

Post by rezistik »

eric_cc wrote: post #771
Mvandenbergh wrote: post #472

Earlier quoted context omitted.

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…

> people are not (and we do not expect them to be) experts in investment. So then they should stay out of the game. I totally disagree that we need a bunch of bullshit laws protecting people from poor decision making.

We need laws protecting people for malicious actors with significant funding who target people that lack knowledge on deeply technical topics like investing.

Re: Tether starting to lose its peg too, after Terra did

#858

Post by s1artibartfast »

oneoff786 wrote: post #830
s1artibartfast wrote: post #803

Earlier quoted context omitted.

Black Jack is playing against the house and you can calculate perfect play. Poker is played against peers and perfect play does not exist. I think poker is a lot closer to speculating on crypto or stocks. Companies can disclose their transaction fees but it is impossible to calculate your expected return on investment. This is why there's almost always terms of service or disclosure to that extent

The best poker ai, as far as I’m aware based on things shown on hn, don’t consider past opponent behavior when making decisions. It’s effectively just a lookup table of hands and bets. Not perfect play but generally better than humans.

Better than humans at all levels, or your average player?

Are you suggesting that every Casino publishes an AI derived win rate for poker by law?

Re: Tether starting to lose its peg too, after Terra did

#859

Post by SilasX »

jmyeet wrote: post #470
alexb_ wrote: post #386

The 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…

Here's a question for tether "investors": why are you investing in something whose stated goal is to maintain a peg to the USD instead of, you know, just holding money in US dollars? You're adding a bunch of risk for literally no upside. The only thing you gain is to to trade that on the blockchain, which is really a response to the oracle problem. So you've greatly increased your risk with no upside to slightly incr…

>The only thing you gain is to to trade that on the blockchain,

Well, yes? Isn't that enough to explain it? Normal US electronic dollars can't interface with Blockchain smartcontracts. So if you wanted to invest in e.g. a vault or liquidity pool, you would need to turn it into a stablecoin first.

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