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USDT and USDC are fungible. It’s almost a certainty that USDT has leaked into USDC. Imagine this: 1) Print USDT out of thin air 2) Send USDT to Binance and b
by qeternity 6y ago
USDT and USDC are fungible. It’s almost a certainty that USDT has leaked into USDC.
Imagine this:
1) Print USDT out of thin air
2) Send USDT to Binance and buy BTC
3) Send BTC to Coinbase and sell for USD.
4) Convert USD to USDC
You’ve now turned imaginary USDT into what is properly backed USDC. Why do this? Because then you don’t have to worry about pesky USD money trails or bank account seizures.
- fallingknife 6y agoBut Occam's razor says it's probably just that a whole ton of money has gone into and trading volumes have increased a lot over the past 6 months.
- panarky 6y agoIt's strange how perfectly rational people who know Occam's razor and Popper's falsifiability principle, and can explain with great eloquence why correlation is not causation, are unable to apply the same logical reasoning to cryptoassets.
- qeternity 6y agoNo, it doesn’t. Occam’s razor literally says if it walks like a duck and quacks like a duck, it’s probably a duck. Tether has admitted to being fractionally backed. They are unaudited and the directors are ghosts. Who the hell would deposit with that type of an organization? Most people would rather just transact in fiat and for those who must have stable coins, every other stablecoin is an order of magnitude safer.
- doggosphere 6y agoBecause then you don’t have to worry about pesky USD money trails or bank account seizures. How do you deposit/withdraw into a legit exchange like Coinbase without having proper KYC?
- qeternity 6y agoGetting BTC into Coinbase is far easier than getting hundreds of millions of USD out.
- doggosphere 6y agoSo if you can't get it out, then doesn't that break your conversion model? Why are these entities holding millions of dollars on Coinbase that they can't get out?
- qeternity 6y agoI said it was harder, not impossible. The end game all depends on the abilities of the proprietors to launder the proceeds. But that’s the rub in all criminal operations and why money launderers are paid so handsomely.