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All shorting consists on 5 steps: 1. Borrow 2. Sell 3. Wait 4. Buy back 5. Close There is USDT lending available. Even more, there is decentralized collateral
by fabianhjr 5y ago
All shorting consists on 5 steps:
1. Borrow
2. Sell
3. Wait
4. Buy back
5. Close
There is USDT lending available. Even more, there is decentralized collateralized lending available.
If someone wanted to short USDT there are plenty of opportunities to do so. (And there might be a lot of people doing so, specially now that the shadyness is being reported on some of the more reputable traditional newspapers)
- alisonkisk 5y agoDoes "5. Close" happen? In cryptocurrency it's usually some form of "4.5 Rug pull"
- smabie 5y agoAlso you can trade the USDT/USD swaps as well
- arcticbull 5y agoYou can only do that at exchanges that are seriously exposed to systemic Tether risk and will also collapse if USDT goes down. So even if you're right, you won't get paid on USDT/USD swaps. Shorting USDT at Bitfinex is like shorting Caesars chips at Caesars. News flash: if Caesars goes bankrupt just which cashier do you think is gonna give you which dollars?
- yokem55 5y agoAt this moment you can deposit defi borrowed usdt into Coinbase pro, swap it for usdc there, and then swap the usdc back to USD and withdraw to your bank account. Then if tether collapses you'd be able to pay back the borrowed usdt for pennies on the dollar.
- pclmulqdq 5y agoThe first step (borrowing usdt on a defi platform) needs you to collateralize that loan with some other form of cryptocurrency. You are forced to have exposure to crypto to make the trade that shorts it.
- saalweachter 5y agoHave you ever seen the bit in a show (or, hell, been caught by a street hustler) where someone asks for help breaking a large bill, and then after a few rounds of confusion and money being handed back and forth walks away with everything?