4 ms·
My advice for anyone who believes tether will explode: Take a loan in tether with another coin as security. Then sell the tether. Should tether really go sout
by frnkng 5y ago
My advice for anyone who believes tether will explode:
Take a loan in tether with another coin as security. Then sell the tether. Should tether really go south, repay cheaply.
Risks: tether will not explode and one has to repay everything plus interest. As tether can‘t exceed the value of one US dollar, there is no risk of increasing asset prices.
My guess: tether will not explode in the foreseeable future. No matter if it is sufficiently backed by US dollar or not. It had enough chances to crash and it never happened.
Edit: Current interest rates for tether ranges (https://defirate.com/lend/ https://defirate.com/lend/) between 9% and 13%. It won‘t be a cheap move to short sell.
- davidgerard 5y agoThe trouble with shorting tether is how to collect when the platform is part of your risk/threat model. This is already the case for shorting crypto - the exchanges have always front-run the customers. And notice how when the price goes down, all the exchanges go down for sudden unscheduled maintenance, like they did just this week.
- eloff 5y agoIf you can't pay back the loan, you don't have to, so that shouldn't be a problem with this specific strategy.