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Well the thesis per the article is that unless more cash keeps piling into tether in order to handle withdrawals then tether could collapse, which is pretty muc
by robbiep 5y ago
Well the thesis per the article is that unless more cash keeps piling into tether in order to handle withdrawals then tether could collapse, which is pretty much the practical definition of a ponzi - don’t be the last one without a chair when the music stops
- tofukid 5y agoA Ponzi scheme is an investment fund whereby older investors are paid returns from newer investor principle. Tether does not promise any returns. It’s not an investment. It’s a stable coin. It’s traded near $1 to 1 tether. Most traders don’t redeem tethers. They sell them on an exchange when they need to go back to dollars.
- robbiep 5y agoI’m not saying it is or it isn’t. The thesis of the article is that it is, and the reasoning they provide is consistent with the definition of a ponzi scheme. So it’s consistent and your reasoning is no better than theirs until we have more evidence (ie it fails or it becomes the cornerstone of a long lived vibrant ecosystem)