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Until it does. If everyone tries to get out of tether at once there could be a run on the currency and a collapse. If tether has been manipulating prices (seems

Until it does. If everyone tries to get out of tether at once there could be a run on the currency and a collapse. If tether has been manipulating prices (seems likely) that will also come out in the crash.

dcolkitt 5y ago
As of press time, USDT (Tether) is currently trading at a slight premium to USDC[1]. There's no indication that the market is pricing an imminent collapse to Tether. [1]https://info.uniswap.org/#/pools/0x7858e59e0c01ea06df3af3d20ac7b0003275d4bf https://info.uniswap.org/#/pools/0x7858e59e0c01ea06df3af3d20...
- grey-area 5y ago
  I don't trust those prices I'm afraid - the price of most cryptocurrencies is manipulated heavily, and this one in particular by printing tether - the peg is a lie (as shown by AG investigation), the backing is a lie (as shown by Tether's admissions), and it's going to zero eventually IMO when the lies unravel. See this recent story for more detail: https://news.ycombinator.com/item?id=27151370 https://news.ycombinator.com/item?id=27151370
- jtbayly 5y ago
  Currently people are fleeing to Tether, so of course the price is up. The implication of the parent comment was that the Tether printer could be getting out today, which would cause BTC to drop. The question then becomes what happens tomorrow. Are people going to try to get out of the Tether that they've jumped into today by going to BTC or USD? If they go to BTC, then no problem, the price goes back up (some). If they try to go to cash, BTC keeps dropping. Tether's value doesn't have to crash for the Tether machine to stop running and cause a BTC crash. Though, at some point in the process it would start dropping, and that would then cause a further BTC price drop.
nostrademons 5y ago
That happened in May-Jun 2019. Auditor's report came out that Tether was insolvent, there was a run on the bank, Bitfinex suspended redemptions of Tether, Binance suspended trading in Tether. The price of Bitcoin went up, from about $5200 to $11,000. Why? Because with Tether out of the picture, Bitcoin is the next most stable cryptocurrency (at the time, there was not enough DAI or USDC in circulation to absorb all the Tether money, though those "stablecoins" traded at a premium of about $1.06/$0.92 against Tether). If you're in the cryptocurrency ecosystem, it's usually because you don't want to keep any of your wealth in $USD, so when Tether was declared insolvent all of the money there rushed into BTC.
loceng 5y ago
A global, decentralized MLM-Ponzi scheme in an irrational market could last decades - especially with the manipulation of the market and regulatory capture efforts. Edit to add: It's part of the cycle of educating society, it'll be painful and costly to those who were left holding the bag - a mob of potentially 100s of millions of people financial aligned hoping they can get more of society convinced of their ideology of Bitcoin's supposed exclusive value.

dcolkitt 5y ago

As of press time, USDT (Tether) is currently trading at a slight premium to USDC[1]. There's no indication that the market is pricing an imminent collapse to Tether. [1]https://info.uniswap.org/#/pools/0x7858e59e0c01ea06df3af3d20ac7b0003275d4bf https://info.uniswap.org/#/pools/0x7858e59e0c01ea06df3af3d20...

grey-area 5y ago
I don't trust those prices I'm afraid - the price of most cryptocurrencies is manipulated heavily, and this one in particular by printing tether - the peg is a lie (as shown by AG investigation), the backing is a lie (as shown by Tether's admissions), and it's going to zero eventually IMO when the lies unravel. See this recent story for more detail: https://news.ycombinator.com/item?id=27151370 https://news.ycombinator.com/item?id=27151370
jtbayly 5y ago
Currently people are fleeing to Tether, so of course the price is up. The implication of the parent comment was that the Tether printer could be getting out today, which would cause BTC to drop. The question then becomes what happens tomorrow. Are people going to try to get out of the Tether that they've jumped into today by going to BTC or USD? If they go to BTC, then no problem, the price goes back up (some). If they try to go to cash, BTC keeps dropping. Tether's value doesn't have to crash for the Tether machine to stop running and cause a BTC crash. Though, at some point in the process it would start dropping, and that would then cause a further BTC price drop.

nostrademons 5y ago

That happened in May-Jun 2019. Auditor's report came out that Tether was insolvent, there was a run on the bank, Bitfinex suspended redemptions of Tether, Binance suspended trading in Tether. The price of Bitcoin went up, from about $5200 to $11,000. Why? Because with Tether out of the picture, Bitcoin is the next most stable cryptocurrency (at the time, there was not enough DAI or USDC in circulation to absorb all the Tether money, though those "stablecoins" traded at a premium of about $1.06/$0.92 against Tether). If you're in the cryptocurrency ecosystem, it's usually because you don't want to keep any of your wealth in $USD, so when Tether was declared insolvent all of the money there rushed into BTC.

loceng 5y ago

A global, decentralized MLM-Ponzi scheme in an irrational market could last decades - especially with the manipulation of the market and regulatory capture efforts. Edit to add: It's part of the cycle of educating society, it'll be painful and costly to those who were left holding the bag - a mob of potentially 100s of millions of people financial aligned hoping they can get more of society convinced of their ideology of Bitcoin's supposed exclusive value.