Tether Required Recapitalization in May 2022
kalzumeus.com
Tether Required Recapitalization in May 2022
1–10 of 336 posts
Re: Tether Required Recapitalization in May 2022
#2I cannot wait seeing it going down soon enough.
Re: Tether Required Recapitalization in May 2022
#3so what happens to the bitfinex gang? giancarlo, ardoino, "frog", CZ, Justin Sun and Marc Andreesen?
Re: Tether Required Recapitalization in May 2022
#4No post body was provided.
Re: Tether Required Recapitalization in May 2022
#5So Tether is doing something akin to fractional reserve banking? From what I understand, this shouldn’t cause a problem unless there is a massive run (everyone trying to convert their USDT into dollars at the same time).
Since most of the USDT is owned by big exchanges who need it to provide liquidity and have no interest in crashing the crypto market, I don’t think this is likely to happen.
Re: Tether Required Recapitalization in May 2022
#6The problem here is that everyone in the crypto industry is taking George Soros's approach to bubbles: “When I see a bubble, I rush in to buy it.”
There is more money to be made on the gravy train of providing liquidity for trades, yield farming, etc. than in trying to short Tether and potentially bleeding out before it goes bust.
Re: Tether Required Recapitalization in May 2022
#7Bitcoin is the real stable coin. Everything else is fluctuating in price discovery until hyperbitcoinization completes.
Re: Tether Required Recapitalization in May 2022
#8I cannot wait seeing it going down soon enough.
I'd wish too but honestly I believe there are powerful enough whales behind it to back it with a superior to dollar peg, there's no possible price crash mechanism like there was for UST if I understand correctly and it is backed at more than 70%
Re: Tether Required Recapitalization in May 2022
#9Bitcoin is the real stable coin. Everything else is fluctuating in price discovery until hyperbitcoinization completes.
It's only stable at gowing downward
Re: Tether Required Recapitalization in May 2022
#10So Tether is doing something akin to fractional reserve banking? From what I understand, this shouldn’t cause a problem unless there is a massive run (everyone trying to convert their USDT into dollars at the same time). Since most of the USDT is owned by big exchanges who need it to provide liquidity and have no interest in crashing the crypto market, I don’t think this is likely to happen.
Cryptocurrency has recreated the wild-cat banking crises of the late-1800s / early-1900s. Go read about the Knickerbocker Trust Company: https://en.wikipedia.org/wiki/Knickerbocker_Trust_Company
These events ultimately lead to the creation of the Federal Reserve for banks to participate in a semi-cooperative system that didn't devolve into save-yourself during times of crises.
The story here is that "unless there is a massive run" is actually a fairly common event.