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The value is "holding" at $0.66 right now (in that it stopped going down... for now... anyway). This crash is utterly fascinating to me. Its definitely a slow-m

The value is "holding" at $0.66 right now (in that it stopped going down... for now... anyway). This crash is utterly fascinating to me. Its definitely a slow-motion train wreck. I do feel for the people who are in this crash right now, wondering if they should get out right now, or if it will be back to normal tomorrow morning. But I don't think this stablecoin has ever dropped this low before. I think I can understand the stress anybody is feeling from this. Its kinda horrific. I remember when money-markets lost their peg back in 2008 and pretty much the world went apocalyptic. I can't imagine what it feels like to lose 30% of an alleged "stable" value in a few hours.

codefreeordie 5y ago
The thing is that people had pretty good reasons to expect Money Market Mutual Funds to be stable at $1. Everybody who really understood them knew that breaking the buck was possible, but absent fraud, it wouldn't have been possible without a massive economic collapse (which didn't happen). Nobody in their right mind should have expected UST to remain stable for any length of time at all, as it is fundamentally built on smoke, mirrors, and Ponzi's best friend. I'm sure there will be some sad stories about people who had no idea what they were buying that lost money they couldn't afford to gamble with, but it's really hard to feel too bad for the suckers and hypemonkeys who memed this stuff into having temporary value.
jcranmer 5y ago
> I remember when money-markets lost their peg back in 2008 and pretty much the world went apocalyptic. For comparison, I believe it was only one money market fund that had to break the buck and sell for something like $0.97 instead... and the withdrawals were hitting 10% of total money market fund value in a few days.
Nursie 5y ago
> The value is "holding" at $0.66 right now By some reports, Binance has set a floor price on trades at $0.70, so people cannot sell lower. It has also suspended withdrawals. So this 'holding' may be influenced by one of the largest exchanges effectively halting trading.
- Ekaros 5y ago
  That sounds like fun. If the price stays lower than that level, I wonder will they get sued for losses beyond that point?
  - Nursie 5y ago
    So from what I can tell they removed those constraints earlier today, and after a brief attempt to prop the peg back up somehow, which saw it hit $0.95, the UST price has been back down between $0.3 and $0.5. I don't imagine that anyone will find themselves sued successfully...
nradov 5y ago
When idiots experience stress as a result of making bad choices that's not "horrific". It's a good object lesson for them to be less gullible.

codefreeordie 5y ago

The thing is that people had pretty good reasons to expect Money Market Mutual Funds to be stable at $1. Everybody who really understood them knew that breaking the buck was possible, but absent fraud, it wouldn't have been possible without a massive economic collapse (which didn't happen). Nobody in their right mind should have expected UST to remain stable for any length of time at all, as it is fundamentally built on smoke, mirrors, and Ponzi's best friend. I'm sure there will be some sad stories about people who had no idea what they were buying that lost money they couldn't afford to gamble with, but it's really hard to feel too bad for the suckers and hypemonkeys who memed this stuff into having temporary value.

jcranmer 5y ago

> I remember when money-markets lost their peg back in 2008 and pretty much the world went apocalyptic. For comparison, I believe it was only one money market fund that had to break the buck and sell for something like $0.97 instead... and the withdrawals were hitting 10% of total money market fund value in a few days.

Nursie 5y ago

> The value is "holding" at $0.66 right now By some reports, Binance has set a floor price on trades at $0.70, so people cannot sell lower. It has also suspended withdrawals. So this 'holding' may be influenced by one of the largest exchanges effectively halting trading.

Ekaros 5y ago
That sounds like fun. If the price stays lower than that level, I wonder will they get sued for losses beyond that point?
- Nursie 5y ago
  So from what I can tell they removed those constraints earlier today, and after a brief attempt to prop the peg back up somehow, which saw it hit $0.95, the UST price has been back down between $0.3 and $0.5. I don't imagine that anyone will find themselves sued successfully...

nradov 5y ago

When idiots experience stress as a result of making bad choices that's not "horrific". It's a good object lesson for them to be less gullible.