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Any rational person can see that Tether poses an existential risk to the crypto economy - but the market is highly irrational. There was an interview with tethe

Any rational person can see that Tether poses an existential risk to the crypto economy - but the market is highly irrational. There was an interview with tether's CTO and GC the other day that was an absolute car crash[0] and should be sounding deafening warning bells for anyone invested in crypto, but instead we see the BTC price shoot up by 15% in the days since it aired. It is utter madness. [0] https://www.youtube.com/watch?v=ZBEqyiO35cQ https://www.youtube.com/watch?v=ZBEqyiO35cQ

overtonwhy 5y ago
In the ending days of Mt Gox's meltdown, prices went up up up for quite a few digital assets, until they didn't. Basically the shady exchanges are insolvent and they stop cashing out real money, so peoples' only chance to cash out is to buy crypto and transfer it out, driving up crypto pricing on the insolvent exchanges, that greedy people try to arbitrage.
swang 5y ago
it is because binance got transferred a whole bunch of tether and also created a whole bunch of its own stablecoin right before that huge spike last night. its not irrational, it is just pure fraud.
- phpnode 5y ago
  it can be both!
- mikeblackson 5y ago
  >it is because binance got transferred a whole bunch of tether and also created a whole bunch of its own stablecoin right before that huge spike last night. What you are describing is just people moving money to an exchange and buying with leverage, not fraud. Price moves up when large buyers step in with FOMO.
nostrademons 5y ago
BTC shot up (by about 250%) the last time Tether was nearly shut down as well, as the NY AG was investigating them from Apr - Jun 2019. It makes sense when you consider that the population holding cryptocurrencies generally considers the USD worthless (you see that in some of the other posts here). USD are not an option. If Tether goes under, the next most stable reserve currency of the crypto economy is Bitcoin, so money flies out of Tether and into Bitcoin, pumping the price up.
- deleted 5y ago
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- deleted 5y ago
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- stickfigure 5y ago
  According to this article [1], about 70% of the current buy pressure on BTC comes from USDT. If tether value collapses, that tether won't be able to afford any BTC, so it won't matter where it flies to. And 70% of the buy pressure on BTC will disappear. [1] https://crypto-anonymous-2021.medium.com/the-bit-short-inside-cryptos-doomsday-machine-f8dcf78a64d3 https://crypto-anonymous-2021.medium.com/the-bit-short-insid...

overtonwhy 5y ago

In the ending days of Mt Gox's meltdown, prices went up up up for quite a few digital assets, until they didn't. Basically the shady exchanges are insolvent and they stop cashing out real money, so peoples' only chance to cash out is to buy crypto and transfer it out, driving up crypto pricing on the insolvent exchanges, that greedy people try to arbitrage.

swang 5y ago

it is because binance got transferred a whole bunch of tether and also created a whole bunch of its own stablecoin right before that huge spike last night. its not irrational, it is just pure fraud.

phpnode 5y ago
it can be both!
mikeblackson 5y ago
>it is because binance got transferred a whole bunch of tether and also created a whole bunch of its own stablecoin right before that huge spike last night. What you are describing is just people moving money to an exchange and buying with leverage, not fraud. Price moves up when large buyers step in with FOMO.

nostrademons 5y ago

BTC shot up (by about 250%) the last time Tether was nearly shut down as well, as the NY AG was investigating them from Apr - Jun 2019. It makes sense when you consider that the population holding cryptocurrencies generally considers the USD worthless (you see that in some of the other posts here). USD are not an option. If Tether goes under, the next most stable reserve currency of the crypto economy is Bitcoin, so money flies out of Tether and into Bitcoin, pumping the price up.

deleted 5y ago
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deleted 5y ago
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stickfigure 5y ago
According to this article [1], about 70% of the current buy pressure on BTC comes from USDT. If tether value collapses, that tether won't be able to afford any BTC, so it won't matter where it flies to. And 70% of the buy pressure on BTC will disappear. [1] https://crypto-anonymous-2021.medium.com/the-bit-short-inside-cryptos-doomsday-machine-f8dcf78a64d3 https://crypto-anonymous-2021.medium.com/the-bit-short-insid...