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Real dollars yes. You deposit money at FTX and then you short the tether quarterly futures: https://ftx.com/trade/USDT-0924 https://ftx.com/trade/USDT-0924 I t
by anonymoushn 5y ago
Real dollars yes. You deposit money at FTX and then you short the tether quarterly futures: https://ftx.com/trade/USDT-0924 https://ftx.com/trade/USDT-0924
I think most people would be more worried about counterparty risk with FTX than with Circle though.
- paulgb 5y agoBy real dollars I mean dollars in an FDIC or SIPC-insured account, unless I'm mistaken this just appears to be an IOU from FTX.
- anonymoushn 5y agoAs far as I know these products are not legal to offer in the US, so you won't find them offered by a US brokerage. The insurance funds you mention only insure a tiny amount per account anyway.
- paulgb 5y agoSIPC covers up to the first $500k per account. Not much to a hedge fund, but a lot to a small fry like me. It's not so much as the insurance coverage, anyway, so much of the vote of confidence that an insurer is willing to cover them.