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I believe a tether collapse would have a significant effect on the entire cryptocurrency ecosystem

• kaashif 5y ago
  It would at least open the door to more regulation, not to mention prudence on the parts of investors. I can't escape the feeling some of these risks aren't being priced in properly. I don't think very many average people are invested in crypto significantly, if at all, despite the hype, so hopefully the harm would be limited.
  • fancifalmanima 5y ago
    ^ This is the reason why more folks in crypto should be worried about and enraged by tether. Inevitably, there will be a market condition that leads to tether being insolvent. And when that day comes the people that get hurt will be every day crypto holders. The people running tether will run off with many, many millions of dollars and many will wonder how the heck this happened. And it'll lead to regulation. And centralization.
• headmelted 5y ago
  This is the big question mark, and why I sigh when people shrug it off. How much of the demand for these tokens is being driven by money that never really existed? 100%? 50%? 0.02%? There’s no way of knowing until it crashes - then what? e.g. if the price dives by 50%, and that really equates to 200% of the actual capital ever invested, what happens then? I was listening to Darknet Diaries episode 102 today about the Canadian money printer, and I was thinking the entire way through it that it was basically describing tether but with paper and ink. It got especially eye-opening when he talked about having to manage how it was released into circulation slowly so as no-one could track where it was coming from.
• creepto 5y ago
  It would be a crash of epic proportions.
• deleted 5y ago
  [deleted]