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> Lol that makes it sound like they had a choice. They could have simply kept their assets in stable coins, like Dai, Tether, etc..They could also sell into US
by darawk 8y ago
> Lol that makes it sound like they had a choice.
They could have simply kept their assets in stable coins, like Dai, Tether, etc..They could also sell into USD on exchanges that allow you to trade USD (e.g. Kraken). Another option would have been to open a hedging short position on say, Bitmex. There's lots of ways they could have cashed out, effectively.
- homakov 8y ago>They could have simply kept their assets in stable coins, like Dai, Tether, etc.. To turn into dust? >They could also sell into USD on exchanges that allow you to trade USD (e.g. Kraken). And trust Kraken then. >Another option would have been to open a hedging short position on say, Bitmex. and trust bitmex then. There are no scalable options to cash out $10m to a bank and sleep well. You could cash out into some "stable coin" only to wake up to it costing $0.04 (hello nubits). Tether is no safer in that matter.
- darawk 8y ago> To turn into dust? Oh, you mean the 'dust' that is worth exactly $1 at this moment, where Ethereum has lost 90% of its value? That dust? > And trust Kraken then. Yep, the exchange that's been trustworthy and operated seamlessly since its inception, sure. And still does. > There are no scalable options to cash out $10m to a bank and sleep well. You could cash out into some "stable coin" only to wake up to it costing $0.04 (hello nubits). Tether is no safer in that matter. You may not sleep perfectly, but you'll sleep a lot better than if you're holding it in crypto. And that is my point. And if you wanted to use Dai, you could actually sleep perfectly. Dai has held up perfectly well, and you can hold it off-exchange.
- manigandham 8y agoPast performance does not indicate future results. The most common disclaimer in finance, but equally applicable to all things in life.
- stale2002 8y agoThat is a nice sounding meme, but it has little basis in reality. What is the probability that microsoft is going to go bankrupt 1 year from now? If your answer is "a very low probability" then that means that past performance does indeed indicate future results.
- manigandham 8y agoThat statement is legal disclaimer that refers to a lack of guarantees because that is, in fact, the reality of the market. Probability is not an argument against it. However, if you would like to discuss probabilities then the history of the crypto market only reinforces the trend of failure as discussed in this thread.
- darawk 8y agoThat's a cute saying, but let me know when you park your money in a bank that opened yesterday.
- manigandham 8y agoI don't see your point. It's a common legal statement to explain that there are no guarantees. Are you arguing that you can in fact guarantee what the market is going to do?
- darawk 8y agoNo, i'm arguing that you are not making any kind of point by saying that. What is your statement intended to prove?
- nradov 8y agoI would feel totally safe parking my money in any FDIC insured bank regardless of when it opened.
- sekai 8y ago> There are no scalable options to cash out $10m to a bank and sleep well. You could cash out into some "stable coin" only to wake up to it costing $0.04 (hello nubits). Tether is no safer in that matter. Gemini, Coinbase?
- homakov 8y agoOnly if you did KYC on every single customer.
- village-idiot 8y agoTether has long been suspected of being a complete and total fraud, a wildcat currency propped up by mere promises, not proof, of backing cash. Exchanges have also been suspected of manipulating prices to liquidate future positions, there’s literally a twitter account dedicated to force liquidated Bitmex position. When every player is operating in bad faith it is very hard to come up with a legitimate way to protect yourself other than not participating.
- darawk 8y ago> Tether has long been suspected of being a complete and total fraud, a wildcat currency propped up by mere promises, not proof, of backing cash. Those suspicions have always been extremely poorly grounded. > Exchanges have also been suspected of manipulating prices to liquidate future positions, there’s literally a twitter account dedicated to force liquidated Bitmex position. Not by anyone serious. Sure, people get liquidated all the time because they don't have enough maintenance margin. The risks are very clearly defined, and all you have to do is read them. > When every player is operating in bad faith it is very hard to come up with a legitimate way to protect yourself other than not participating. There is no evidence that the major exchanges are operating in bad faith. And even if they were, what is your point? My point is that they could have neutralized the currency risk of their assets. And that point is absolutely true.
- pgwhalen 8y ago> Those suspicions have always been extremely poorly grounded. I am really quite ignorant on the issue, but they seem to me like reasonable suspicions when Tether’s purported “audits” are anything but.
- village-idiot 8y agoThey no longer claim to provide audits.
- darawk 8y ago
- nradov 8y agoThere's no such thing as a stable coin. Only coins that haven't crashed yet.