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It's not about "market cap", which is a myth in the crypto space anyway: I made 1 billion of my proprietary tokens, and sold .001 to myself in another wallet fo
by defaultprimate 5y ago
It's not about "market cap", which is a myth in the crypto space anyway: I made 1 billion of my proprietary tokens, and sold .001 to myself in another wallet for $1. Therefore my token's market cap is $1 trillion. I'm sure banks will let me buy a hundred million dollar mansion now since my net worth is verfiably gigantic.
It's about cash "equivalent" in flow and out flow that tether/stable coins make up. Currently they're responsible for over 80% of this volume[0], which mean virtually no "real money" exists in the crypto space, it's just imaginary "totally-backed-bux" and wash trading.
[0]https://coinlib.io/ https://coinlib.io/
- dcolkitt 5y agoVolume is not synonymous with flows. For example ~50% of US equity market volume is HFT. Yet this trading has virtually no impact on the large-scale direction of the market. That's because they don't accumulate sizable positions. Most of the volume is very high turnover, so there's no large aggregate impact. Similarly, most of crypto volume is Tether, because Tether is used to arbitrage between exchanges. Tether is a way to transfer money significantly faster than the fiat banking system. Particularly for exchanges in segmented banking markets. It's much cheaper/faster to get USDT from Coinbase to ByBit than it is to send an ACH wire.
- defaultprimate 5y agoIt's much cheaper/faster to use USDT because if you are the "in crowd" you don't have to actually pay and back it, and if you own/print it, you can wash trade to infinity with it. The point is that the amount of money that supposedly exists in the crypto ecosystem (which is, at best zero sum, but really negative sum in most cases) is as imaginary as tether's backing.