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That for sure. But I am more wondering about the collateral damage to other coins. Coz it would likely trigger sell off of many other coins to cover loses. On
by josefrichter 5y ago
That for sure. But I am more wondering about the collateral damage to other coins. Coz it would likely trigger sell off of many other coins to cover loses.
On the other hand, the market cap is 75B, while ETH is 488B and BTC is 919B. So the impact maybe wouldn't be too drastic and too long lasting.
I wonder if it's worth converting USDC and DAI loans to USDT, would be easier to repay if it did crash..
- gadnuk 5y agoMarket Cap != Liquidity 70% of the crypto volume is in USDT. From 2020 (should still hold): https://coingape.com/tether-dominates-exchange-trading-with-70-of-the-volume/ https://coingape.com/tether-dominates-exchange-trading-with-... If Tether collapses, so does USDT. If exchanges have majority of their volume in USDT pairs, then the market liquidity dries up and the whole thing collapse. Remember that those coins need to be cashed out for actual USD. But if that USD does not actually exist, what will you sell into?