6 ms·
Tether's collapse will be to Mt. Gox what Little Boy was to a firecracker.
by optimalsolver 5y ago
Tether's collapse will be to Mt. Gox what Little Boy was to a firecracker.
- randomhodler84 5y agoI’m not so sure it will collapse (now), this settlement adds legal clarity. The CFTC has set their parameters in the settlement and will enforce compliance, BitFinex/Tether paid a fine. Tether will be stronger through greater reserve and investment grade requirements, and more transparent.
- arcticbull 5y agoNah it certainly doesn't. This only covers up to February 2018. At the time they only had $2B in issued USDT, and of course, they remain under investigation by the DOJ and SEC.
- randomhodler84 5y agoFair enough, I guess there are other battles still at play. Let’s see where this goes :-)
- arcticbull 5y agoEvery day is a fresh adventure haha.
- reginold 5y agoOpen question: Has this been priced in by the market?
- WalterSear 5y agoIt's not remotely priced in. The BTC price is currently held up by USDT inflows, rather than USD. Tether issuance notifications are the most reliable leading indicator in crypto: they are all you need to trade BTC. Most people in crypto aren't even aware of the problem. Most of the ones that are, refuse to accept the situation and get very emotional when it's brought up.
- toomuchtodo 5y agoIf Tether went to zero today, what would the true price of BTC be?
- arcticbull 5y agoIt's very difficult to say because the waterfall of cascading liquidations would shut down exchanges. It would take quite a while for things to settle down enough for a real fiat market to exist. The whole market is propped up by stacked leverage.
- WalterSear 5y agoGiven that it's being issued specifically to manipulate the market (it's not just a 'whale'), and the fact it's involved in 70% of crypto trades, I can't see a way to put a floor on it.
- reginold 5y agoNeat where do you track Tether issuance notifications?
- abrodersen 5y agoThe canonical method would be to call the `totalSupply()` method on Tether's ERC20 contract.
- WalterSear 5y agoTwitter bots are easiest, though they come and go. But you can see the issuing wallet here: http://omniexplorer.info/lookupadd.aspx?address=3MbYQMMmSkC3AgWkj9FMo5LsPTW1zBTwXL http://omniexplorer.info/lookupadd.aspx?address=3MbYQMMmSkC3... Or visit Tether's site: https://wallet.tether.to/transparency https://wallet.tether.to/transparency
- deleted 5y ago[deleted]
- axiosgunnar 5y agoEverything has always been priced in by the market
- Macha 5y agoOf course "the market" is people, and algorithms watching what the people and other algorithms do, so is not immune from excessive optimism or pessimism, as the stock market should demonstrate
- null_shift 5y agoOne would assume so. Interesting to see the price rise in advance of the announcement. Maybe this punishment was seen as less severe than it could have been?
- c-fe 5y agoI think the price rise in advance of the annoucement may have more to do with the approval of bitcoin ETFs, there are some news about that..
- davidgerard 5y agoThe price rise was a Tether-fueled pump. Someone poured $1b of stablecoins into a single purchase to pump the price.
- spywaregorilla 5y agoYou mean someone gave 1 billion of tether to buy bitcoin?
- webinvest 5y agoYou can answer this question yourself by comparing the borrowing rates of USDC, DAI, USDT, BUSD, and GUSD. You can learn more by plotting the interest rate basis point spread on a time-series line chart. If the borrow rate for USDT was 18%, the borrow rate for USDC was 6%, and the borrow rate for DAI was 4%, what would that tell you?