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So isn't it possible that Unum becomes insolvent? Forgive me if there's an easy place to read up on this :) In other words, you send in $400 of ETH for 400 Un
by Mouse47 9y ago
So isn't it possible that Unum becomes insolvent? Forgive me if there's an easy place to read up on this :)
In other words, you send in $400 of ETH for 400 Unum, and if the price of ETH goes down to $300 and they try to cash out all 400 Unum...?
- jstanley 9y agoYes it is possible. That doesn't make it meritless. You might equally say "isn't it possible that Tether could just print Tethers out of thin air"? And the answer would be "yes", but people still find utility in it.
- Mouse47 9y agoI wasn't saying it was meritless, I'm just a big finance noob. So basically Unum is trading "risk of value going down/up" for "risk of smart contract bank run"? EDIT: Also, I'm really interested since this is the first smart contract use case that I've managed to understand. Which is good since I'm all-in on ETH :) EDIT 2, for anyone reading this thread: here's the announcement thread, answers all the questions I had here: https://bitcointalk.org/index.php?topic=2473877.0 https://bitcointalk.org/index.php?topic=2473877.0
- jstanley 9y agoCompared to holding ETH, yes, that's the tradeoff. Compared to holding USDT, the tradeoff is that Tether can't print themselves free USDT's, but you have a risk of a smart contract bank run.