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There's no need for action, just wait it out. The "stable" coins used to route around US laws are starting to lose their peg. When Tether goes, it'll all drop
by mikewarot 5y ago
There's no need for action, just wait it out.
The "stable" coins used to route around US laws are starting to lose their peg. When Tether goes, it'll all drop at least 90%, if not 99.95%, as all the margins on the offshore exchanges get called.
- delaaxe 5y ago> at least 90% There's no middle ground with stablecoins, they're either worth $1 or zero.
- the_gastropod 5y agoHmm? Terra is currently trading at $0.91. https://finance.yahoo.com/quote/UST-USD https://finance.yahoo.com/quote/UST-USD
- BaseballPhysics 5y agoI think the point is a stablecoin's value is in being stable. Otherwise it's just another coin. So if a stablecoin can't retain its peg, then it has no practical utility and it's effectively worth zero.
- samatman 5y agoIt's effectively worth what you can sell it for, so 0.91USD for Terra. This reflects a market consensus that there's about an 80% chance that it won't regain the peg, if you think about it.
- BaseballPhysics 5y agoOr it's an indication of how many people have sunk cash into the coin and are stuck HODLing in the hopes of it recovering, which... makes it just like any other coin.
- PretzelPirate 5y agoThis isn’t quite true. Even algorithmic stable coins can hit $0.99 and $1.01
- mikewarot 5y agoI'm sorry for the ambiguity... I was talking about Bitcoin dropping 90%+, Tether obviously could hit zero.