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I was looking at the usdc, vs tether, vs dai market caps over the last few weeks. Tether seemed to have stopped printing as usdc has continued to grow. https:/

I was looking at the usdc, vs tether, vs dai market caps over the last few weeks. Tether seemed to have stopped printing as usdc has continued to grow. https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/usd-coin/ https://coinmarketcap.com/currencies/usd-coin/ https://coinmarketcap.com/currencies/multi-collateral-dai/ https://coinmarketcap.com/currencies/multi-collateral-dai/ Tether is at 60billion market cap compared to Usdc 30 billion and dai around 5 billion. Should probably look at volumes aswell. I think we would get a major crash if tether fails, but I also think it will recover with usdc and other stable coins that have more legitimacy. For now, its a house of cards that no one can really afford to remove their stake from. Those who have to use tether, are in a very precarious position.

jfrunyon 5y ago
USDC doesn't have a leg to stand on either and as far as "other stable coins", it's pretty dumb to compete with someone who is able to undercut you on cost, so they're either doing the same or not competitive.
ulzeraj 5y ago
I think there is a possibility of things going the other way around of what grand parent is expecting. Once USDT implodes there will be a bank run to sell those tokens for fiat, bitcoin, Ethereum or even other stable coins. That until exchanges cease accepting those or doing trades at all. Some might become insolvent. In the end people who leave their funds at exchanges will be the one with the short end of the stick.
- JumpCrisscross 5y ago
  > Some might become insolvent. Why should an exchange go broke because something they trade falls in value?
  - phyalow 5y ago
    Because the leverage extended to customers is greater than the value of collateral the exchange holds. It is certainly possible if Tether dropped to 0.8 or something this would cause even automated liquidation and margining engines to fail then causing a systemic shock across all posted liquidity on the venue.
  - user-the-name 5y ago
    It wouldn't, if they handled funds correctly. (They don't.)
user-the-name 5y ago
USDC is rapidly shedding legitimacy in order to grow this quickly. Do not expect it to be much different than Tether ultimately.
- shawabawa3 5y ago
  How are USDC losing legitimacy? I haven't heard of this. They have monthly attestations that they hold the backing funds by a legit accountancy firm
  - user-the-name 5y ago
    They have monthly attestations, but an attestation is not an audit. What those attestations say is also not the same from month to month. Lately, they have been changing the exact thing they attest. For instance, the attestations no longer claim that they hold backing funds.

jfrunyon 5y ago

USDC doesn't have a leg to stand on either and as far as "other stable coins", it's pretty dumb to compete with someone who is able to undercut you on cost, so they're either doing the same or not competitive.

ulzeraj 5y ago

I think there is a possibility of things going the other way around of what grand parent is expecting. Once USDT implodes there will be a bank run to sell those tokens for fiat, bitcoin, Ethereum or even other stable coins. That until exchanges cease accepting those or doing trades at all. Some might become insolvent. In the end people who leave their funds at exchanges will be the one with the short end of the stick.

JumpCrisscross 5y ago
> Some might become insolvent. Why should an exchange go broke because something they trade falls in value?
- phyalow 5y ago
  Because the leverage extended to customers is greater than the value of collateral the exchange holds. It is certainly possible if Tether dropped to 0.8 or something this would cause even automated liquidation and margining engines to fail then causing a systemic shock across all posted liquidity on the venue.
- user-the-name 5y ago
  It wouldn't, if they handled funds correctly. (They don't.)

user-the-name 5y ago

USDC is rapidly shedding legitimacy in order to grow this quickly. Do not expect it to be much different than Tether ultimately.

shawabawa3 5y ago
How are USDC losing legitimacy? I haven't heard of this. They have monthly attestations that they hold the backing funds by a legit accountancy firm
- user-the-name 5y ago
  They have monthly attestations, but an attestation is not an audit. What those attestations say is also not the same from month to month. Lately, they have been changing the exact thing they attest. For instance, the attestations no longer claim that they hold backing funds.