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Hedge Fund Bets Big with Short of Stablecoin Tether
- Eddy_Viscosity2 5y agoThis reminds me of the time Bill Ackman shorted Herbalife because he saw that it was an obvious scam and due to crash and go bankrupt. He was right about the first part, but wrong about the second. “No one ever went broke underestimating the intelligence of the American public.” https://www.investopedia.com/news/billionaire-bill-ackman-dumps-herbalife-ending-5year-war-betting-against-it/ https://www.investopedia.com/news/billionaire-bill-ackman-du...
- rasz 5y agoWhen we approach $Billions$ a rational unmoral actor would start looking at other means of hastening the demise of those apparent scams. The most obvious one would be founders having "accidents", as scams of this caliber are rarely institutionalized and heavily rely on main actor pulling the strings (like Bernie). Every pyramid scheme has its peak, cut it off and dominoes should fall.
- HWR_14 5y agoBill Ackerman invested billions in his short
- chews 5y agoThey're about to get ackman borked... commercial paper is as good as greenbacks to the Dept of Treasury at the moment.
- Havoc 5y agoGood luck with that. Tether is oddly resilient given its colourful history
- Commodore63 5y agoBuoyed by lots of unpaid crypto shills who don't want the gravy train to end.
- zamadatix 5y agoUnpaid gravy trains, those must deliver actual gravy!
- Ekaros 5y agoI think it's part not knowing better and part that there isn't really any redemption options for average player.
- Tangokat 5y agoSpeculation: The other side of this bet is actually Tether itself laughing all the way to the bank as Fir Tree sends them their 15% negative carry (Goldman or equivalent taking 5% for brokering the deal). If the Tether guys know they have the money and this will never happen.. might it not be good business to keep looking shady? They can buy everytime the peg goes below $1 making free money.. and sometimes a hedge fund comes by and hands them some more money risk free.