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I don't know - I would say there is a massive counterparty risk too - my understanding is that to short Tether, you need to do it on an exchange. And if this po
by TheAlchemist 5y ago
I don't know - I would say there is a massive counterparty risk too - my understanding is that to short Tether, you need to do it on an exchange. And if this ponzi theory is right, I would be pretty woried about the return of any money from the exchanges.
- dragontamer 5y agoIf you're playing vs Bitfinex, then what if they stop printing Tether and force the price to go up? They obliterate your short position, and once you're margin called, they go back to their printing Tethers business. You can't win at this game. The best move is to just sit back and wait for the chaos to unfold. Even then: what if USDT becoming worthless causes people to hoard BTC? What if BTC-USD spikes severely, as people "rush to safety" ? Is there reason to believe that a Tether collapse would in fact bring down BTC with it?
- gruez 5y ago> If you're playing vs Bitfinex, then what if they stop printing Tether and force the price to go up? >They obliterate your short position, and once you're margin called, they go back to their printing Tethers business. You can't win at this game. I'm not sure whether that makes sense or not. I guess it's worth doing for revenge reasons, but if there are people willing to pay $1.1 for a $1 IOU, that seems like the perfect opportunity to decrease your deficit.
- gruez 5y agoYou can trade USDT-USD on kraken and coinbase, which are some of the more regulated exchanges out there. So it's not as bad as shorting it on bitfinex itself.