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This article goes to great alarmist lengths, past the point of being deceiving. Just the very first line: > One of the world’s most widely traded virtual curre

by aedron 7y ago

This article goes to great alarmist lengths, past the point of being deceiving. Just the very first line: > One of the world’s most widely traded virtual currencies faces renewed doubts about its stability [...] Tether is nothing in terms of crypto currency penetration. It does not even have a percent of daily trading. Then a few paragraphs down: > [...] within an hour of the attorney general’s statement and Tether slid 1.4 percent. 1.4 per cent. Even big cap stocks fluctuate that much some days. > At the time of the correspondence, Bitcoin was trading at around $6,500. It dropped 4.7 percent to $5,236.03 at 12:10 p.m. in Hong Kong on Friday. So they mention a price from 8 months ago, and then mention yesterday's price, implying that it fell that much because of this event. Garbage journalism.

ccjnsn 7y ago
For something pegged 1:1 with the US dollar a 1.4% decrease is quite unusual. It's volume is 2nd only to Bitcoin per [1]coinmarketcap. With your 3rd point about pricing changes, yeah correlation/causation, it's a theory that is plausible though. 1.coinmarketcap.com
- GreaterFool 7y ago
  If the peg was actually backed by anything then yes, that'd be unusual.
  - askmike 7y ago
    Not really no, it depends on how much liquidity of a certain type is worth compared to liquidity of another type. Given the volatility in crypto markets this tends to change drastically in different times. Same as why lending rates for crypto & fiat can go from 0.0001% to 0.08% (per day for example) in a matter of hours based on certain sudden price action.
- carrja99 7y ago
  You would think, but not for tether. I've seen it sit comfortably at 98-99% and even once dip as low as 89%.
tim333 7y ago
> One of the world’s most widely traded virtual currencies Looking at coinmarket cap just now it's No 2 by 24hr trading volume. Bitcoin $18bn, Tether $16.5bn, Ethereum $8bn, all others less than 4.
arisAlexis 7y ago
journalism in crypto space is indeed ridiculous
faxi 7y ago
5236.03 is not 4.7% less than $6500. If those were the prices before and after, the drop was 19.45%.

by aedron 7y ago

ccjnsn 7y ago

For something pegged 1:1 with the US dollar a 1.4% decrease is quite unusual. It's volume is 2nd only to Bitcoin per [1]coinmarketcap. With your 3rd point about pricing changes, yeah correlation/causation, it's a theory that is plausible though. 1.coinmarketcap.com

GreaterFool 7y ago
If the peg was actually backed by anything then yes, that'd be unusual.
- askmike 7y ago
  Not really no, it depends on how much liquidity of a certain type is worth compared to liquidity of another type. Given the volatility in crypto markets this tends to change drastically in different times. Same as why lending rates for crypto & fiat can go from 0.0001% to 0.08% (per day for example) in a matter of hours based on certain sudden price action.
carrja99 7y ago
You would think, but not for tether. I've seen it sit comfortably at 98-99% and even once dip as low as 89%.

tim333 7y ago

> One of the world’s most widely traded virtual currencies Looking at coinmarket cap just now it's No 2 by 24hr trading volume. Bitcoin $18bn, Tether $16.5bn, Ethereum $8bn, all others less than 4.

arisAlexis 7y ago

journalism in crypto space is indeed ridiculous

faxi 7y ago

5236.03 is not 4.7% less than $6500. If those were the prices before and after, the drop was 19.45%.