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Approx. 24 hours ago, Tether printed 1B $USDT out of thin air
- deleted 5y ago[deleted]
- quangv 5y agoI kinda of think this is causing the current housing prices bubble.
- newsbinator 5y agoPlease elaborate
- deleted 5y ago[deleted]
- lilSebastian 5y agoCare to explain?
- jeraldv 5y agoMore generally, this concept of creating money out of thin air, yes.
- intuitionist 5y agoTether’s total (on-chain) liabilities sum to a bit less than two months’ worth of Federal Reserve purchases of agency mortgage-backed securities. They’re huge, if they’re a fraud they’re probably the biggest ever, but in macro terms they’re small fry.
- tehlike 5y agoinflating crypto prices, people end up diversifying into real estate.
- csomar 5y agoTo put this into perspective 1. 1 billion is just 1.33% of the total USD Tether has issued. 2. USDC also issued 1bn in the last 24 hours.
- santhoshnarayan 5y agosource re usdc?
- gadnuk 5y agoActually $1.9 billion USDC was printed since the dip. And $2 billion USDT Source: https://twitter.com/LucaLand97/status/1467591656870494210?s=20 https://twitter.com/LucaLand97/status/1467591656870494210?s=... Source for USDC prints: https://twitter.com/usdcoinprinter https://twitter.com/usdcoinprinter
- rglullis 5y agoCircle has passed multiple audits. Coinbase is a company that managed to at least convince the SEC they are doing things correctly. Also important, no one from Circle/Coinbase leadership is missing, incommunicado or in hiding.
- qeternity 5y ago> Circle has passed multiple audits. Circle has absolutely never been audited. Circle, like Tether, has published attestations, which do not remotely approach the thoroughness of an audit.
- seibelj 5y agoI worked at Circle. If you think that Jeremy Allaire is going to go to federal prison, you are out of your mind. Their combined in-house plus external legal teams are larger than 95% of the YC startup headcounts. The US government has been all over them for years.
- 5y ago
- chrismcb 5y agoWhat is $USDT?
- babyshake 5y agoWhen it says out of thin air, it means that is some verifiable confirmation of no collateral? Or is the "out of thin air" part just means normal minting?
- poetically 5y agoNo one has seen any of their collateral or knows how much of it they actually have. I believe the finance people call this being over-leveraged but I'm not an expert. Seems kinda weird that the SEC hasn't looked into it.
- christophilus 5y agoI think the SEC would have to first establish it as a security, no? It’s currently in a legs grey area.
- poetically 5y agoI don't know. I'm not an expert but seems like there should be some institution that figures out whether financial games like stablecoins are actually economically beneficial and whether they should be regulated in some way or other.
- spookthesunset 5y agoI mean to be fair, they did have an auditor back in 2018. But the auditor quit before completing their investigation. Auditors quitting is never a good sign. https://www.coindesk.com/markets/2018/01/27/tether-confirms-its-relationship-with-auditor-has-dissolved/ https://www.coindesk.com/markets/2018/01/27/tether-confirms-...
- gadnuk 5y agoIt's even worse than that. Tether fired that auditor (Friedman LLC) because they were looking into it in a bit more detail. From the very same article: "Given the excruciatingly detailed procedures Friedman was undertaking for the relatively simple balance sheet of Tether, it became clear that an audit would be unattainable in a reasonable time frame." Even Friedman LLP says in the internal memo “Do not rely on this report”. It's been almost 4 years since that and no independent firm has ever audited Tether.
- joering2 5y agoHalf a billion $ is printed everyday by BEP. (just to compare)
- advisedwang 5y agoHalf a billion, of which 95% is replacing older money going out of circulation. So really the comparison is 25MM.
- jagger27 5y agoCan someone explain why this is on the "TRON" blockchain? I thought Tether was on Ethereum.
- MisterBiggs 5y agoJust about every Ethereum competitor has some equivalent to ERC20 tokens. I'm surprised Tether dedicated 1 Billion USDT to TRON but its likely because they don't think there will be any repercussions for creating liquidity out of thin air.
- qeternity 5y agoA huge amount of Tether is TRC20 (if memory serves, the majority). Tron is very China centric, and Tether has massive connections to Chinese capital control evasion.
- tzone 5y agoNah, most of USDT is on TRC20 because gas fees are way cheaper there and most of the exchanges support withdrawing USDT using TRC20. So all arbitrageurs, market makers, etc, transfer USDT between different entities through TRC20 network. USDT on TRC20 started to increase only after Ethereum gas fees got ridiculously high and it became too expensive to use even for pretty high volume market makers.
- qeternity 5y agoAbsolutely not. Large Tron issuances started well before Ethereum gas fees soared. We are talking a couple of years ago. Also, market makers moving Tether around do not give two shits about $60 in gas fees or whatever. Additionally, a huge amount of Tether has gone into DeFi on Ethereum and L2s (or bridged to newer L1s, which typically don't have a Tron bridge).
- tzone 5y agohttps://www.theblockcrypto.com/data/decentralized-finance/stablecoins/usdt-supply-by-blockchain-daily https://www.theblockcrypto.com/data/decentralized-finance/st... Ethereum was dominating TRON until very recently and this does have to do with huge increases in Gas prices on Ethereum
- alpha_squared 5y agoEvery time there's a tether story here, the inevitable discussion of fraudulent activity comes up because Tether seems like an outright scam. I'm inclined to believe all that from what I've read and however little I can make sense of. However, I can't really tell how this ends. They seem confident that there will be no repercussions to minting money out of thin air and, so far, they've been right. Eventually, that's bound to catch up, but I suspect it's going to hurt a lot more than just those with crypto assets and hurt a lot of those without crypto assets, no?
- peakaboo 5y agoThis also means that nobody needs to be poor. Anyone can just get some money since its tied to nothing.
- rp1 5y agoRelative scarcity is a necessity for any currency.
- kwertyoowiyop 5y agoThe previous commenter thought he could get away with omitting “/s” and has been proven wrong.
- peakaboo 5y agoOf course but you could give people some free money nevertheless and it would make the world a better place. What do you think would happen if you gave 1000 dollars to each person in America every month? I think a lot of good would come from that and not much bad.
- secondcoming 5y agoA loaf of bread would cost $100
- 5y ago
- IronWolve 5y agohttps://protos.com/tether-papers-crypto-stablecoin-usdt-investigation-analysis/ https://protos.com/tether-papers-crypto-stablecoin-usdt-inve...
- jeraldv 5y agoThere still has yet to be any verification of anything backing Tether. It is likely to be literally thin air.
- gadnuk 5y agoThey printed another billion just 6 hours ago: https://twitter.com/whale_alert/status/1467504581571751940 https://twitter.com/whale_alert/status/1467504581571751940 They have become so brazen, that they will just keep printing billions without any audit or insight into their holdings. Their last attestation published a few days ago (by them, not by any independent firm) raises more questions than answers: https://twitter.com/dee_bosa/status/1466826912781590529 https://twitter.com/dee_bosa/status/1466826912781590529 They barely have any backing in actual USD and are very suspect in the commercial paper holdings They have a CTO who regularly engages in snarky comments when asked about their holdings: https://twitter.com/paoloardoino https://twitter.com/paoloardoino They have a CFO who has a very very checkered past: https://www.ft.com/content/4da3060c-8e1a-439f-a1d7-a6a4688ad6ca https://www.ft.com/content/4da3060c-8e1a-439f-a1d7-a6a4688ad... Tether has regularly been sued and settled, never won. CFTC: https://www.cftc.gov/PressRoom/PressReleases/8450-21 https://www.cftc.gov/PressRoom/PressReleases/8450-21 NYAG: https://www.cnbc.com/2021/02/23/tether-bitfinex-reach-settlement-with-new-york-attorney-general.html https://www.cnbc.com/2021/02/23/tether-bitfinex-reach-settle... DOJ: https://www.bloomberg.com/news/articles/2021-07-26/tether-executives-said-to-face-criminal-probe-into-bank-fraud https://www.bloomberg.com/news/articles/2021-07-26/tether-ex... Moreover, they roped in a nation state (El Salvador) to issue bonds that fund El Salvador’s Bitcoin City to be issued on Blockstream’s Liquid Network and processed by iFinex, the controversial company behind Tether. https://blockworks.co/el-salvador-plans-bitcoin-city-funded-by-bitcoin-bonds-and-powered-by-a-volcano/ https://blockworks.co/el-salvador-plans-bitcoin-city-funded-... To add to that, the SEC denied creation of VanEck’s bitcoin-backed ETF because of risks associated with Tether https://www.ft.com/content/77bc7296-9bd4-4ea4-bab9-91cee789e47f https://www.ft.com/content/77bc7296-9bd4-4ea4-bab9-91cee789e... From the article: "Among the concerns the SEC raised in the disapproval order included possible “wash trading”, when the same institution is on both sides of the trade, generating extra fees for minimal risk; potential price manipulation by whales who dominate bitcoin; and possible “manipulative activity involving the purported ‘stablecoin’ Tether”. The list keeps going on and on and on...
- bee_rider 5y ago"$USDT" seems intentionally named to confuse people and imply that there's some relationship to, like, actual dollars. Has the US government ever sued somebody for trademark infringement?
- wmf 5y agoIf they couldn't stop eurodollars back in the day maybe they can't stop USDT for the same reason.
- gruez 5y ago1. Is that actually confusing? The first time I saw "USDT" on an exchange, it was immediately obvious that it wasn't real US dollars, mainly because of the extra "T". If I logged onto my wells fargo account and saw that my balance was in USDW ("W" for wells fargo), I'd be pretty concerned as well. 2. does the federal government even hold a trademark on "USD"?
- pmontra 5y agoSo what happens if the owner of that billion attempts to convert one thousand into USD?
- deleted 5y ago[deleted]
- TheDudeMan 5y agoThey get one thousand USD (but I think they need to wait until a 3rd party wants to do the trade). That works right up until the inevitable collapse. Anyone who holds Tether is a fool. That's even dumber than buying an NFT.
- poetically 5y agoThis is the bottle imp paradox: https://boingboing.net/2019/02/07/the-paradox-of-the-bottle-imp.html https://boingboing.net/2019/02/07/the-paradox-of-the-bottle-.... The crash is far enough in the future that people don't worry about buying into USDT because they think they can sell it off before the inevitable crash.
- gitfan86 5y agoThey never will. There is no liquidity. How many crypto people have cashed out all of their money? The scam is to build up this community of people who are convinced that the USD is going to be worthless in the future and that crypto is going to be only way of buying things in the future. Like Maddof there is no end game, just keep telling people that their gains exist and that they are idiots if they cash out, forever.
- bob332 5y agoWho cares. Let the fools waste their money
- josefrichter 5y agoI wonder what would happen if this proved to be scam. Would that kill the whole crypto market?
- kebman 5y agoPeople would want to get rid of Tether and fast. One way is to buy real money, like Bitcoin.
- deleted 5y ago[deleted]
- Andrew_nenakhov 5y agoI'll probably buy a few bitcoins at $100 price point then. Just in case it ever grows back.
- aaronax 5y agoAnyone holding Tether will be stuck selling it for the equivalent of $0.05 or whatever. This alone would have no effect on crypto prices. However, it will become harder to get various government-type currencies in to exchanges so presumably purchasing demand will fall, which seems like it would make crypto prices fall too.
- graeme 5y ago80% of crypto trades are against USDT
- seaourfreed 5y agoWe are closer to them collapsing
- pezzana 5y agoAnd? So what? If that quantity of Tether (1/75 of the float) were dumped into the open market for USD, you'd expect to see the USD change rate fall. That clearly hasn't happened. The rate has been very close to 1:1 forever. There's this unsubstantiated conspiracy theory that as I gather goes like this: Tether prints tokens, uses them to buy bitcoin when the USDBTC exchange rate falls. These Tether issuance spikes always happen after BTC corrections, and this is taken as evidence of pumping USDBTC. The problem is that if there were legitimate buying of BTC with Tether, which is plausible after the ass-whooping USDBTC has taken recently, new Tether would need to be issued to keep the 1:1 peg. Sources critical of Tether IMO don't provide the evidence needed to distinguish the two scenarios.
- authed 5y ago> That clearly hasn't happened. The rate has been very close to 1:1 forever. I tried to set a buy order for Tether at less than $1 and the exchange (Kraken) would not let me, maybe that's why?
- FDSGSG 5y agoBinance and Bitfinex definitely let you do this, so that's not why.
- throwvirtever 5y ago> [I]f there were legitimate buying of BTC with Tether, which is plausible after the ass-whooping USDBTC has taken recently, new Tether would need to be issued to keep the 1:1 peg. Can you explain in detail why new Tether would need to be issued?
- qeternity 5y agoIt wouldn't. OP doesn't understand.
- pezzana 5y agoIncreased demand for tether causes the exchange to rise as buyers compete against each other. Same as any other currency market. There's nothing special here. Tether needs to be issued to satisfy the demand and prevent the price of tether from rising against the dollar. Look, Tether is in all likelihood a scam that will eventually collapse. I'm just saying there are multiple ways to explain what's happening. Those making the claims have the burden of proof. And that proof has been rather thin for my taste.
- rsp1984 5y agoCan anybody with an understanding of the matter ELI5 to me how it can be that, given all the uncertainty, 1 Tether is still trading for ~1 USD on the major exchanges? That price seems to be determined by the open market. There are competing stablecoins. Is everybody just so confident that Tether is the real deal?
- zatertip 5y agoNo short of sufficient size yet
- gruez 5y agoHow would a short change things? If it did push down the price, all that would mean is that tether could rebuy them at a discount and make a profit.
- teh_infallible 5y agoIt certainly is strange that Tether hasn’t been shut down for counterfeiting, which is essentially what they are doing. I assume people in the banking industry allow them to operate as a way to hold leverage over the crypto markets and absorb capital that would otherwise flow to altcoins.
- gruez 5y ago> It certainly is strange that Tether hasn’t been shut down for counterfeiting, which is essentially what they are doing. It really isn't counterfeiting. If you made fake hundred dollar bills and passed them off, that'll be counterfeiting. However, if you decided to give a bunch of people $100 IOUs and claim they're "totally backed by real dollars in a vault somewhere", but they're not, then it's just fraud. The NY AG and/or CFPB were able to prosecute/fine them for that, but they also got rid of the "totally backed by real dollars in a vault somewhere" claim, so whether they're currently committing fraud is unclear.
- leoh 5y agoYou can’t pull a rug out from under your own feet
- lbotos 5y agoIs this right: The problem with tether is a lot of crypto use it as sort of an "on-chain peg" and some people trade "real value crypto" (bitcoin) for tether. It's not a problem until the actual tether holders can't cash out to fiat. The secondary effect is that tether may be pumping the price of all crypto everywhere because it's so ubiquitous. Do I have this right? I'm mostly stuck on the "value" of tether beyond some sort of "accounting" or "tax avoidance" (no judgement here, trying to figure out why ppl would have tether's instead of "actual crypto".
- Osiris 5y agoIf one is using something like Uniswap to exchange crypto, you cannot go directly to Fiat, so people that want to sell a token or Ethereum will trade the asset for USDT and then later trade the USDT for another asset when the price has dropped. It's just a way to buy and sell crypto with an intermediate asset that has almost no price volatility.
- cmckn 5y agoI understand why stablecoins exist, but doesn’t an operation like Tether go against the decentralization goal of “crypto”? The fact that the ecosystem has become dependent on these types of players is interesting to me. Why hasn’t the community demanded even basic transparency about their operations? It seems to be totally exempt from the pious expectations of other crypto projects.
- BrissyCoder 5y agoMost of the crypto heads on Twitter actually seem to believe that it is properly backed. But you know, you're judging the opinion of people who invest in cartoon apes.
- qeternity 5y ago> Most of the crypto heads on Twitter actually seem to believe that it is properly backed. I don't think anyone genuinely believes this. But as long as everyone knows the game, but the peg holds and their bags are pumped, then nobody cares.
- BrissyCoder 5y agoYeah, I actually probably lean towards following the nuttier ones for my own entertainment. Just had a look on r/crytpocurrency and they all seem to realise it's BS and a huge risk to the market.
- BrissyCoder 5y agoNah. It's backed by cash and cash equivalents mate.
- natch 5y agoSo in other words, long term, it's backed by toilet paper.
- BrissyCoder 5y agoI think that kind of paper wouldn't make for a very comfortable ass wiping so no - lacking the utility of TP.
- post_from_work 5y agoThe toilet paper is backed by nuclear weapons and the world's most offensively-capable Navy and Air Force (arguably no longer the world's largest Navy so I clarified the metrics).
- natch 5y agoCan’t put my finger on why that backing seems dubious. Didn’t I read about a smackdown somewhere recently done by some ragtag dudes with Kalashnikovs? Talibsomething.
- post_from_work 5y agoYou mean the country where half the population might starve this winter because the only money they have is frozen in our banks? https://acaa.org.uk/blog/frozen-assets-and-freezing-temperatures-afghanistan-faces-a-starving-winter/ https://acaa.org.uk/blog/frozen-assets-and-freezing-temperat... The threat of devastation works better on countries that aren't already completely devastated by decades of internecine conflict anyway. It also works better against the non-theocratic adversaries that are legitimately concerned for their own corporeal wellbeing (Qaddafi, Saddam, KJU, Assad).
- boublepop 5y ago
- fredgrott 5y agoI have some very exclusive Dutch Tulips to sell you for small amount, they will go up (side-ways glance) how do we short this?
- mrtweetyhack 5y agoSo now they need to pay taxes on that
- wc- 5y agoRegarding this "print": https://twitter.com/paoloardoino/status/1467504705857335302?s=20 https://twitter.com/paoloardoino/status/1467504705857335302?... "PSA: 1B USDt inventory replenish on Tron Network. Note this is a authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps." The tether CTO routinely comments on these seemingly large moves because people get very worked up about them. Why does tether seem to bring out the tinfoil theories from people that have absolutely 0 background in finance or crypto market structure or econ in general.
- wmf 5y agoTether could allay these concerns by getting audited and cleaning up all the investigations against them.
- FDSGSG 5y ago> cleaning up all the investigations against them This makes it pretty obvious that you're not arguing in good faith. I guess you would have given Steven Hatfill or Wen Ho Lee the same advice?
- qeternity 5y agoLol Tether's own attestations make mention of the numerous open investigations. There's no good faith argument to be had. It's just a matter of fact.
- FDSGSG 5y agoThe idea that one could just "clean up" government investigations is downright ridiculous. That's not how it works, no matter how innocent you may be.
- qeternity 5y agoYou might be attaching some temporal qualities to the phrasing, but that's not how I read the comment. Generally, if you want to make a government investigation go away, you cooperate by demonstrating your innocence. Of course, it's the government's job to prove guilt, but usually good actors have an abundance of mitigating evidence at their disposal, and it's usually just easier to say "here's the evidence, we're not guilty".
- edoceo 5y agoIs this the Billion that was invested into the Trump social?
- unixhero 5y agoAre tethers on Tron now??
- zhoujianfu 5y agoI’m not saying tether is fully backed (I think it’s been admitted they’re not), but do people not understand how it even ostensibly works? When people sell other crypto for tether/USDC, they are essentially “buying” tether/USDC. Which tether and circle “print” out of thin air… but ostensibly back by selling the other crypto they just received for real dollars. With the huge crash, a lot of people were selling their crypto.
- gruez 5y ago>When people sell other crypto for tether/USDC, they are essentially “buying” tether/USDC. Which tether and circle “print” out of thin air… but ostensibly back by selling the other crypto they just received for real dollars. You're missing the previous links in the chain. When you sell your crypto at an exchange, your counterparty isn't the exchange, it's another person who wants to buy crypto. Therefore you making the trade doesn't cause new USDT to be printed. That happens before the trade, when your counterparty made the deposit. Money flowing into the cryptocurrency ecosystem causes tethers to be printed; money flowing out causes it to be destroyed. If people were all simultaneously cashing out (on net), it would stand to reason that tethers be destroyed, not issued.
- qeternity 5y agoPrecisely. So many Tether defenders simply have no idea how exchanges or markets work for that matter. It's truly scary how much confidence people have in topics they do not understand.
- zhoujianfu 5y agoIf I were tether themselves, I know I’d be personally market making every usdt trading pair on every major exchange myself. And when people bought my tethers for crypto I’d turn around and sell the crypto for usd and issue more usdt.
- gruez 5y agoThat sounds like a lot of work for nothing? Suppose 1 BTC = $50k >And when people bought my tethers for crypto now you have 1 BTC, and $49,995 (assuming $10 spread and you were a maker) USDT (aka IOUs) outstanding >I’d turn around and sell the crypto for usd now you have 0 BTC, $49,995 USDT outstanding, and $50,005 (assuming $10 spread and you were a maker) From a balance sheet point of view that looks like a pretty standard market making operation. You don't need to be issuing unbacked IOUs for it to work. The only advantage that tether has is access to the initial $50k capital for market making, but you don't need to be a stablecoin issuer to pull this off. You could just as well embezzle an exchange's funds directly. Actually come to think of it, if you wanted to market make and you were ifinex/tether, the biggest advantage you can get isn't the free funds you can issue/embezzle, it's the differentiated order flow you can get as an exchange operator. You can categorize order flows as toxic/non-toxic[1] (maybe based on account trading history?), and keep them for yourself to internalize. [1] https://www.ceedtrading.com/glossary/toxic-order-flow/ https://www.ceedtrading.com/glossary/toxic-order-flow/
- randyrand 5y agoAll of crypto is literally out of thin air. I feel like i’m taking crazy pills.
- Asparagirl 5y agoAt least with tulips you could plant a nice garden. And if you could keep the deer and voles away, they would slowly multiply over time, with no quantitative easing needed at all, just sun, rain, and good soil.
- astrange 5y agoAll money is, but that's why it works.
- tzone 5y agoPeople who have no idea how crypto markets work always get riled up by these tweets. Contrary to popular belief, there is generally huge demand spike for USDT when crypto market has flash crashes, not other way around. More USDT got issued because there was opportunity to make 0.1-0.2% on each new USDT since demand for it was that high (i.e. people were paying real USD to buy USDT at a premium, imagine that). USDT (and USDC) demand spikes during crypto crashes because people actually cash out to these instruments because they are so widely used and trusted by actual market players. People aren't cashing out of crypto ecosystem during most crashes, money actually stays in crypto networks.
- qeternity 5y ago> Contrary to popular belief, there is generally huge demand spike for USDT when crypto market has flash crashes, not other way around. This is not contrary to popular belief at all. Tether almost always prints a few billion around large pullbacks, and the cynical view is that this is to stabilize markets by buying the dip. > More USDT got issued because there was opportunity to make 0.1-0.2% on each new USDT since demand for it was that high (i.e. people were paying real USD to buy USDT at a premium, imagine that). Uh yeah this is not at all how stablecoin premia get arbed. If you'd like a real answer, I'd be happy to explain. But I get the feeling that you're pretty invested in crypto and just want answers which align with your beliefs.
- tzone 5y agoWhile I am no huge volume arbitrageour/market maker, I actually make a living running arbitrage systems and market making systems specifically for stablecoins. I do consider to know what I am talking about, considering my systems make hefty profits and have no real exposure to volatile crypto assets (or even long term exposure to crypto in general, my profits are in real world dollars). This is why I know that USDT has actual real utility and it is currently best instrument in its category. USDT is indeed somewhat shady but it’s premise and utility are all sensible and it is hugely profitable for its founders. They have zero reasons or incentives to do suspect things that could risk its peg. If something goes horribly wrong for USDT it is going to be due to incompetence and not because of some long term planned con.
- mangoman 5y agoSome of these transactions on whale alert are extremely interesting - https://whale-alert.io/transaction/bitcoin/be11f0e7c040a3f5c966a4d13516bfd29b6767b3144355c5ecfc5e523646d803 https://whale-alert.io/transaction/bitcoin/be11f0e7c040a3f5c... https://whale-alert.io/transaction/bitcoin/28bfa6497df054f42e5e86171a4f2f8fb401f494f6856e44daf5f495df027ff5/1 https://whale-alert.io/transaction/bitcoin/28bfa6497df054f42... someone has been moving the same number of bitcoin between wallets like hot potato between wallets, about $730 million dollars. Why?
- amazd 5y agothey are still going right now: https://www.blockchain.com/btc/address/3CpcVodog9VKvWCXZhrJPxtVbsFna3SHWb https://www.blockchain.com/btc/address/3CpcVodog9VKvWCXZhrJP... this is after about transfer of various wallets... lets see if it keeps going. Seems like someone is trying to tumble their $740 million btc...
- throwaway4good 5y agoData on the major stable coins are available on coinmarketcap - click market cap, one month: https://coinmarketcap.com/currencies/usd-coin/ https://coinmarketcap.com/currencies/usd-coin/ https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/ Tether's market cap - or dollar supply goes from 72 to 75B - up 3B USD. USD Coin (related to Circle and Coinbase) goes from 34B to 41B - up 6B USD.
- sabujp 5y agoSo something like this? 0. Mint dollars backed by nukes and military and in anticipation of GDP growth 1. Create new cryptos out of thin air to suck in dollars 2. Mint USDT in *anticipation* of swaps from non-stable cryptos. No dollars have actually been deposited yet! 3. USDTs actually come in? maybe, maybe not, maybe fuck yourself. 4. Loan out USDT to hedge funds for crypto futures trading. 5. Give back portion of interest to people who stashed the USDT. 2-4 is where it gets sketchy.
- qeternity 5y agoWhy do crypto/Tether critical threads always sink very quickly on HN? This was #2 when I saw it, now it's second page. > Tips on adding JSON output to your CLI app (kellybrazil.com) > 67 points by kbrazil 3 hours ago | flag | hide | 21 comments Current #4 was submitted at the same time, but has 36% of the votes, and 13% of the comment activity. I'm no expert, but that sort of engagement you'd expect to be punching above the current #4. What gives @dang?
- sergiomattei 5y agoI've had a totally different experience. Crypto-critical threads on here quickly gain a lot of traction to my eye.
- deleted 5y ago[deleted]
- greyface- 5y ago> Why is A ranked below B even though A has more points and is newer? > You can't derive rank from votes and time alone. See "How are stories ranked?" above. > How are stories ranked? > The basic algorithm divides points by a power of the time since a story was submitted. Comments in threads are ranked the same way. > Other factors affecting rank include user flags, anti-abuse software, software which demotes overheated discussions, account or site weighting, and moderator action. https://news.ycombinator.com/newsfaq.html https://news.ycombinator.com/newsfaq.html I'm guessing this fell under the "overheated discussions" bucket.
- panarky 5y agoThis is an editorialized title. "Otherwise please use the original title, unless it is misleading or linkbait; don't editorialize." https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html And there is zero evidence that the editorialized title is true.
- hardee 5y agoI'm assuming that's because as of 24 hours ago, Tether eclipsed unminted deposits/receipts of ~$1,000,000,000. .. Right?
- aerojoe23 5y agoAnyone care to summarize?
- parthi2929 5y agoI am very novice on money, but isn't it how USD also printed or minted nowadays?
- xerxesaa 5y agoYes, but USDT claims it is backed by USD. The belief in this claim is what holds the pegged value.
- EVa5I7bHFq9mnYK 5y ago1B tethers should be created when someone deposits $1B into Tether Corp's bank account. "Created out of thin air" means tethers have been issued on blockchain, but no one deposited any US dollars into said bank account. What evidence do you have for the latter? If you are confident that is exactly what happened, why don't you go and short USDT/USD pair? Why no insider executed that profitable short trade? How come after so many years of tireless accusations on every message board available, that 99% of people seem to agree with, said pair still trades at exact 1.000 ratio? Why authorities have not stopped the obvious fraud going on for so long? Something doesn't add up.
- deleted 5y ago[deleted]
- kangnkodos 5y agoWho ends up holding all the $USDT? Who are currently the biggest holders? Lots of different random individuals? All the people who have deposited cash into an exchange but haven't bought bitcoin yet/people who have sold bitcoin on an exchange, and haven't cashed out for USD yet? Institutions, if so which ones? Where does it tend to pool up? Are there any studies of where most of it sits?