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Tether starting to lose its peg too, after Terra did
- VectorLock 5y ago"stable coin" is the "clean coal" of the crypto world.
- chriswd 5y agoI don't think it's losing its peg, but who knows... Everything is so crazy right now.
- deleted 5y ago[deleted]
- chriswd 5y agoWow! This is moving really fast, forget what I've said. xD
- ideamotor 5y agoYeeeeehaw
- thematrixturtle 5y ago$0.95 and dropping as I type this.
- russellbeattie 5y agoSeems to be recovering already. Bounced back to $0.97. The show might be over...
- TylerE 5y agoGoing to be a hell of a ride down. Wouldn’t surprise Me to wake up to sub $20k BTC
- NhanH 5y agoIf Tether massively breaks the peg, there is a non-trivial chance of sub $2k BTC tomorrow
- closewith 5y agoOr sub $20 BTC.
- anm89 5y agono
- anm89 5y agoStill don't think it's likely but agree with non trivial. I've got my popcorn ready.
- formerly_proven 5y ago*klaxons blaring*
- murderfs 5y agoOr, even more comically, "$"20,000,00 BTC, as people try to escape from a sinking tether.
- hackcasual 5y agoYeah, this shit creates chaos and makes it impossible to get a good read on the market. Wouldn't be surprised to see a record BTC ATH, though for ignominious reasons
- agumonkey 5y agoStabilization by symmetric bank runs.pdf
- unsupp0rted 5y agoWould BTC be worth buying at sub-$2k? I never saw the use-case for it. I’d sooner use a faster, cheaper, more energy-efficient, more centralized crypto like XLM or XRP. But even then: for payments it’s hard to compete with Visa/Mastercard for speed and safety. And as a store of value all crypto is crazy volatile. If BTC goes sub $2k, would anybody reasonably want it anymore or would the emperor have no clothes?
- jallen_dot_dev 5y agoIf Tether is backed, then Bitfinex could buy currently-discounted tethers off the market and redeem them for face value, pocketing the difference. The fact this is not happening means they really don't have the money, do they?
- IAmEveryone 5y agoTechnically, i guess they could "have a little trouble acting so fast", buying everything at $0.9 and back up to $1, and pocket the difference, scolding people for their lack of faith. Practically? Yeah, it's goner.
- nikanj 5y agoThey really do have the money, but would rather spend it on Lamborghinis and coke.
- semi-extrinsic 5y agoIDK, according to the graph on CoinMarketCap it has been down to mid-to-low 90s several times in the past, e.g. in early 2020. Sure it's been really stable for a long time now, but might this just be another "bump"?
- dragontamer 5y agoIn the short term, they have the reserves for sure. In the short term, this is more of a classic bank-run. The Terra-coin + Luna scared a lot of cryptocoin holders, and now they're running away from another stablecoin. Even if Bitfinex had the money, the amount of traders leaving USDT has to be a colossal amount. The amount of money Bitfinex can transfer at any given time is limited, so the peg will bend and buckle. ------- The big question is: does Bitfinex have enough reserves to weather the storm? Not just this short-term storm, but the whole shebang that's about to happen? We will find out... eventually. UST / Luna had substantial reserves. But it clearly wasn't enough. Probably because Anchor promised 20% gains and there was simply more UST in existence than the amount of USD put into that system.
- chinathrow 5y ago
- anm89 5y agoWatching this in real time. Crazy. Currently at .97.
- NavinF 5y ago“Will Tether collapse by the end of 2022?”: https://www.metaculus.com/questions/9121/tether-to-collapse-in-2022/ https://www.metaculus.com/questions/9121/tether-to-collapse-... Community Prediction: 33% My Prediction: 50%
- xur17 5y agoWould you be willing to make a bet (with money) based on those odds?
- renewiltord 5y agoI’m in, too. $10k 1:1 payout. I think Tether won’t collapse by the end of 2022. Happy to tie up the USD in escrow too.
- NavinF 5y agoI’d take 1:3 against that for $10. Replied above too.
- renewiltord 5y agoHaha, that's too small a bet to be worth it. I'll forget. But I have a friend sitting right here who'll do it. Terms: - Tether loses it's peg => USDT/USD pair is at 0.8 or less for a 7-day continuous period on https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/ or https://www.binance.com/en/price/tether https://www.binance.com/en/price/tether - You get thirty dollars if this happens by 00:01 Jan 1 2023 - He gets ten dollars if this has not happened by 00:01 Jan 1 2023 If you accept, edit your profile to include contact details and then say so here.
- NavinF 5y agoI accept. Ask him to email me so I have his contact too :)
- 5y ago
- turtledove 5y agoYou love to see it happen. Truly love to see it.
- WXLCKNO 5y agoSince when are links to random forum posts allowed for this type of stuff?
- mcintyre1994 5y agoBest source IMO for this is https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/
- voz_ 5y agoI love watching the bubble collapse.
- helsinkiandrew 5y agoMatt Levine characterised these schemes as > The basic structure of the trade is (1) Ponzi, (2) acceptance, (3) diversification, (4) permanence But it seems backing it with a virtual currency that can go to zero and diversification with another virtual currency wasn't a sound plan. https://www.bloomberg.com/opinion/articles/2022-05-11/terra-flops https://www.bloomberg.com/opinion/articles/2022-05-11/terra-... Crypto has become forever mired with the worst parts of banking and none of the benefits of currencies backed by entities with reserves that have value, and supported by laws, taxes, and large militaries.
- deleted 5y ago[deleted]
- adhesive_wombat 5y agoThe fact that they've been minting billions of tether without collateral should make it abundantly obvious that this isn't a stablecoin and never had been. Anyone can pretend to have a peg in the good times, that doesn't mean there's really a peg or that the peg will remain in bad times. And if you can't count on the peg in bad times, it's not a stablecoin. If you've been honestly working on the assumption that it is, then you deserve to lose your (real) money to some crypto VCs on an island somewhere. And this doesn't only apply to crypto, look at how many countries with currency pegs can maintain that when their economy turns down, and then look at how many people actually seek to own the currency at that point rather than a currency backed by something (like a gigantic economy).
- shafyy 5y ago> If you've been honestly working on the assumption that it is, then you deserve to lose your (real) money to some crypto VCs on an island somewhere. The sad reality is that many poorer and financially illeterate people have been tricked by VCs and other grifters into this with billions of dollars spent in advertising. So, no, they don't deserve to lose their money to these assholes. These assholes need to be prosecuted, fined and put to jail if necessary.
- sshine 5y ago> many poorer and financially illeterate people have been tricked I’m sorry, but it’s worse than that. Whenever I’ve said “Tether is a scam waiting to blow up, and the evidence is obvious”, none of my smart peers had anything to say, either. The BTC price is hells high by this fake USD money printer. At least people are collectively waking up. Brrrr.
- tluyben2 5y agoThe religious (for a lack of better word as it is a religion to believe that cryptocurrencies are inherently better than other assets (outside NFTs) but they do believe that if you read twitter/reddit) people are hodling but all the 'saner' people I know went out in december. There was enough writing on the wall to know that 2022 would not be a good year for some assets (and it's just beginning). Only the real believers are still holding and it's a drama; a friend of mine went 'all in' on Terra and is staunchly 'hodling' because he believes it's the greatest project in finance since humans invented currencies. He has 30+ years work of money in it which is his families money (his brothers and parents gave him their savings to 'invest') etc. But he is not depressed; he firmly believes it is coming back as it's decentralized. There are many of him. MANY. I mean there are also other stories; an acquaintance (he invested in my business with cash in 2018) got out end 2017 with around 60m$ in cash; he was a waiter making minimum wage who borrowed 50k$ from his family who remortgaged their house (not rich people but at least house owners) in 2014 and gambled his families future and accidentally (he was a real believer, but the 'business scams' around blockchain made him a non-believer) gambled right. It's a weird casino. Maybe it is my circle (but I read it on reddit all the time the past 10 years though) but the financially illiterate seem far more likely to 'invest' with borrowed money, do not diversify and put 'everything on red'/all-in kind of thing and then don't know what to do when that goes wrong (lie to their spouses and kids about it). An senior sales guy of my (then) company invested ALL his money and borrowed more (totaling many millions) in a Dutch web stock (worldonline) and lost everything; his wife, son, house, cars; basically life.
- nikanj 5y agoLook at the front page of https://coinmarketcap.com/ https://coinmarketcap.com/ There are 10114 different coins listed. Even if cryptos will deliver on the promises of the fully decentralized future, are we going to need that many different instruments? Today practically all merchants takes Visa and Mastercard. Some even take Amex, and a minuscule amount take BTC. Does anyone take a coin from page 73 of coinmarketcap.com?
- jabbany 5y agoTo be fair a lot of those are specialty tokens for specific services/uses. Overall, the crypto situation can be thought of as more similar to, say, "gift cards" issued by companies. You could say the same thing about a $5 Starbucks gift card --- you'd be hard pressed to spend it directly against any other merchant, but you could feasibly try to sell it for < $5 real dollars and if Starbucks went under, it would be worthless.
- closewith 5y ago> To be fair a lot of those are specialty tokens for specific services/uses. Is that true, or were they created as speculative instruments and are doomed to failure in the long run?
- junofan 5y agoSome of them give you discounts and perks and stuff. There’s real value. Many of the legit ones are created more as a way to bootstrap network effects by giving out free stuff to early adopters.
- DebtDeflation 5y ago>There are 10114 different coins listed. And at least 10110 are shitcoins. We're now dealing with 2nd order memecoins. Dogecoins were the original memecoin but now we have Shiba Inu coins. Is there really any reason for anything other than BTC, ETH, and maybe XRP to exist at this point? Maybe XMR since it fulfills the original intent of privacy and anonymity, if not for the fact that governments are trying to stamp it out most exchanges don't want to touch it.
- fastball 5y agoWatch the sell orders rack up in real time: https://ftx.com/trade/USDT/USD https://ftx.com/trade/USDT/USD
- russellbeattie 5y agoThat's a great link! The numbers are absolutely mind boggling to me. I just still can't believe how much money is involved in this completely unregulated market.
- eterm 5y agoIn times like this I miss the trollbox.
- jcbrand 5y agoCryptowatch has a trollbox right next to their charts. https://cryptowat.ch/charts/KRAKEN:USDT-USD?period=1h https://cryptowat.ch/charts/KRAKEN:USDT-USD?period=1h Click the chat icon (under the bell icon) on the rightmost sidebar to open it up.
- vishnugupta 5y agoNote that while it's a good proxy this isn't same as going to the issuer (https://tether.to https://tether.to) and getting 1USD in exchange for 1USDT. Tether is still honouring 1-1 conversion for a minimum of $100K.
- ThePhysicist 5y agoIn my understanding that process takes several days at least and the reimbursement is done at the leisure of Tether, so I'd wager a lot of panicked investors won't take the official redemption route (that only works for large sums as well) and try to sell on the market instead. Hard to say if Tether will still honor the redemption if the price falls below 0.50 USD, as they likely don't have enough reserves on hand and from their transparency report is seems that more than 50 % of their reserves are tied up in commercial paper (Chinese real estate some speculate), which should be quite hard to liquidate in the current market environment.
- artdigital 5y agoAnything on any market can shift its price to the red or green. Tether and USDC are just tokens, so if there is enough sell pressure and not enough liquidity, the price on an exchange can jump to something else than $1. They are not fixed at a static $1. It's actually almost never exactly at $1 and the reason why it's immediately pegging back to $1 is because there is an arbitrage opportunity, assuming there is enough backing so that in the worst case the custodian would just buy back the tokens for exactly $1, no matter what the market price is. Seeing USDT at 0.97 temporarily doesn't mean much more than there is an insane amount of money exiting right now. One exchange can quickly fall to something like 0.97 if there is not enough buy power closer to $1
- NavinF 5y ago> Seeing USDT at 0.97 temporarily doesn't mean much more than there is an insane amount of money exiting right now Eh you might be right, but there are orders executing at 0.95 now. Will you buy in for a “free” 6% ROI? I was planning on buying a couple of GPUs, but now I think I should wait a bit just in case ETH crashes lol Edit: Yeah you should have put your money where your mouth is. It’s back up to 0.988.
- Nursie 5y ago> just in case ETH crashes lol Down about 20% in the last 24 hours so ... is that a crash?
- NavinF 5y agoNope, that’s pretty normal given how volatile ETH can be. But with another 20% drop, we might see retail prices for GPUs: https://www.metaculus.com/questions/9561/end-of-the-gpu-shortage/ https://www.metaculus.com/questions/9561/end-of-the-gpu-shor... Either way I don’t wanna buy in before a potential dip :)
- xur17 5y ago> I was planning on buying a couple of GPUs, but now I think I should wait a bit just in case ETH crashes lol If you're willing to wait a few more months, I'd definitely wait. Regardless of a price drop, there should be a demand drop due to the transition to PoS.
- deleted 5y ago[deleted]
- 5350-uiop-1130 5y agoLoad ze tether fud. I'm no fan of USDT, and don't hold it but the same thing happened in the May 2021 crash. I think it's just the high volume of people selling right now cause it to depeg. I think if it goes too far below you will see the major exchanges go into "maintenance mode" since they're all deeply invested into keeping it alive.
- ryanSrich 5y agoRight. It’s fairly trivial for the exchanges to disallow a sell order for a stable below a certain price. That’s an obvious thing they would do if things start to really spiral here.
- 5350-uiop-1130 5y agoThey did it briefly for UST(erra) at 0.7
- tomerv 5y agoThat's exactly the kind of thing that would cause everyone to lose confidence in a coin.
- ryanSrich 5y agoMore the exchanges imo. Similar to Robinhood halting orders on GameStop.
- eudoxus 5y agoExactly. Its not even like it "technically" depegged. Just because two ppl on the internet happened to agree to trade it for $0.95 instead of $1 on tether.io doesn't mean its value isn't actually $1. Mind you, I'm no fan of USDT, obviously not backed by anything but hopes and dreams, but lets at least be accurate when we shit on things :)
- marban 5y agoYou know that shit has hit the fan when Reddit puts up the suicide prevention hotline in the sidebar.
- robertlagrant 5y agoCoffeezilla has been doing good work uncovering the mess that is Tether: https://www.youtube.com/watch?v=-whuXHSL1Pg&t=0s https://www.youtube.com/watch?v=-whuXHSL1Pg&t=0s.
- emehex 5y agoYou can keep track of all of the various "stable"coins here: https://coinmarketcap.com/view/stablecoin/ https://coinmarketcap.com/view/stablecoin/
- emehex 5y agoUSDT, UST, USDN, FEI, USDD, SUSD, FRAX, etc, have all lost their pegs
- eudoxus 5y agoMade a similar comment on other sections of this post but I'll reiterate here as well. Most (not all) of these stable coins are asset backed. If they can "prove" they have the 1:1 reserves OR there is a readily available "official" platform/tool/service/website that allows you to swap $1 USDX to $1 USD, then they haven't "lost" their pegs. What we see here on coinmarketcap.com is just poor market sentiment causing an overwhelming number of sellers compared to buyers that are happy to take a 1-3% hit to exit quickly. Slowing burning through the order book depth until the arbitragers out number sellers, and things stabilize. Eg. Tether USDT, you can still swap $1 USDT to USD on tether.io despite some exchanges listing it as low as $0.95 (note that others also list it as high as $1.06 at the same time). Exchange prices are poor indicators for this kind of stuff. But, others you have mentioned, like UST, which are algorithmic and not collateralized can (and very concretely has) lose their pegs :)
- robinjhuang 5y agoRat poison squared. Buffet was right.
- deleted 5y ago[deleted]
- thematrixturtle 5y agoIt's hard to overemphasize how big a deal the Tether peg breaking would be (is?). At $78B, it dwarfs UST/Terra, and it's supposed to be an asset-backed stablecoin, not a risky algorithmic boondoggle like UST. If Tether plunges, it will take the broader crypto markets with it. Emphasis on the "supposed to be", since many, many, many unanswered questions have been raised about Tether's reserves and they've previously been caught straight-up lying about them.
- xmprt 5y agoCan someone explain stablecoins to me? Most online explanations talk about how the currencies are "pegged" to various assets/real world currencies/physical objects/algorithms/cryptocurrencies, however they never explain how the pegging is done. What is happening right now that is causing the price to fall, what prevented it from falling over the last few years, and why isn't that thing preventing it from falling now?
- tcharlton 5y agoMatt Levine did a great write up of algorithmic stablecoins here: https://www.bloomberg.com/opinion/articles/2022-05-11/terra-flops https://www.bloomberg.com/opinion/articles/2022-05-11/terra-... "1. You wake up one morning and invent two crypto tokens. 2. One of them is the stablecoin, which I will call “Terra,” for reasons that will become apparent. 3. The other one is not the stablecoin. I will call it “Luna.” 4. To be clear, they are both just things you made up, just numbers on a ledger. (Probably the ledger is maintained on a decentralized blockchain, though in theory you could do this on your computer in Excel.) 5. You try to find people to buy them. 6. Luna will trade at some price determined by supply and demand. If you make it up on your computer and keep the list in Excel and smirk when you tell people about this, that price will be zero, and none of this will work. 7. But if you do a good job of marketing Luna, that price will not be zero. If the price is not zero then you’re in business. 8. You promise that people can always exchange one Terra for $1 worth of Luna. If Luna trades at $0.10, then one Terra will get you 10 Luna. If Luna trades at $20, then one Terra will get you 0.05 Luna. Doesn’t matter. The price of Luna is arbitrary, but one Terra always gets you $1 worth of Luna. (And vice versa: People can always exchange $1 worth of Luna for one Terra.) 9. You set up an automated smart contract — the “algorithm” in “algorithmic stablecoin” — to let people exchange their Terras for Lunas and Lunas for Terras. 10. Terra should trade at $1. If it trades above $1, people — arbitrageurs — can buy $1 worth of Luna for $1 and exchange them for one Terra worth more than a dollar, for an instant profit. If it trades below $1, people can buy one Terra for less than a dollar and exchange it for $1 worth of Luna, for an instant profit. These arbitrage trades push the price of Terra back to $1 if it ever goes higher or lower. 11. The price of Luna will fluctuate. Over time, as trust in this ecosystem grows, it will probably mostly go up. But that is not essential to the stablecoin concept. As long as Luna robustly has a non-zero value, you can exchange one Terra for some quantity of Luna that is worth $1, which means Terra should be worth $1, which means that its value should be stable. All of this is, I think, quite straightforward and correct, except for Point 7, which is insane. If you overcome that — if you can find a way to make Luna worth some nonzero amount of money — then everything works fine. "
- FatalLogic 5y agoThat looks bad. The worst previous fall of Tether/USDT was down to about $0.90 in mid-2017, during which it was substantially below $1.00 for over a month
- Jarmsy 5y agoIsn't the difference now though that Tether is much more entwined with the whole crypto system than it was 5 years ago? So as one falls each pulls the other down with it.
- FatalLogic 5y ago>Tether is much more entwined with the whole crypto system than it was 5 years ago? That is uncertain, because the degree of entwining has always been unclear. News reports 5 years ago also contained a lot of worry about Tether's risks, maybe even more than today. What was obvious 5 years ago, and remains unchanged today, is that Tether claims to represent an enormous amount of money, which is a difficult hole to fill if Tether turned out to be far from fully-backed, as many suspect
- nly 5y agoPart of me wonders if this is just speculators getting confused between the UST and USDT symbols. There are a lot of dumb and careless people trading in this world
- fbrncci 5y agoThe moment I've been waiting for way too long. Here's to me hoping that this entire thing will blow up, and that all the Tether predictions have been true since the very start.
- Nursie 5y agoSo the most interesting thing to me, here, is that a lot of exchanges seem to denominate in USDT, not USD. And the BTC price is currently different between the two on exchanges that have both - https://trade.kraken.com/charts/KRAKEN:BTC-USD https://trade.kraken.com/charts/KRAKEN:BTC-USD https://trade.kraken.com/charts/KRAKEN:BTC-USDT https://trade.kraken.com/charts/KRAKEN:BTC-USDT I wonder how long it'll take things to ripple through the ecosystem if the price of tethers continues to be other than $1. (edit - and I may be wrong, but it looks to me like the USD price is following the USDT price by approximately that offset, so as tether regains some of its peg, the USDT price doesn't move much, but the USD price heads back up towards it. Feels like the tail wagging the dog..)
- nathias 5y agoWell there won't be a better time for the enemies of crypto to attack USDT, but I don't think it's going down now.
- LeoPanthera 5y agoTo follow the price in real time: https://pro.coinbase.com/trade/USDT-USD https://pro.coinbase.com/trade/USDT-USD
- gigatexal 5y agoAnyone who thought tether coins could work out without the banks backing the fiat actually doing the tethering was misled at best.
- oars 5y agoI wonder what Tesla executives think of the $1b in Bitcoin they own. Would their risk committee have pushed them to sell it all if USDT behaves like this?
- sgt101 5y agoWhat's the bullshit about auditors and Lehmans? Lehman's assets ended up being more valuable than expected after it went bust. What killed it was that it ran out of cash because it hadn't provided for the market conditions that cropped up . Discarding the utter nonsense that Goldman's were on about (7 sigma market shift my arse) this was in the class of understandable accidents. The problem is/was that these understandable accidents can't happen to institutions that are systemically important.
- bagels 5y agoIf I expect it to go to 0, what is the play? I asked how to short tether years ago and didn't find any answers to act on.
- TheAlchemist 5y agoThere is none. The play was to short companies linked to crypto on real exchanges - a bit late for that right now. If Tether goes to 0, probabilities are, your winning bet on a crypto exchange is worthless anyway.
- junofan 5y agoBorrow tether on AAVE/Compound and sell it.
- seydor 5y agoI don't know why i think it is a good thing that these ambivalent coins are being extinguished? It is catharsis to realize that bitcoin cannot be compatible and coexist with legacy fiat systems
- id 5y agoIt's already back to $1. But sure, every volatility in any shitcoin (even crypto bros make fun of USDT) must mean Bitcoin is being "extinguished".
- EGreg 5y agoOP here. Note to everyone visiting our forum via the link… you are free to make an account and comment there, if you wish. The forum is about “Web4” — moving beyond Web3 ponzi schemes with an emphasis on social impact and utility of crypto. I have since added a comment there, emphasizing the broader danger for crypto: If Tether drops this could undermine the thesis that Bitcoin and other similar cryptos are good stores of value, because currently their value comes 1% from their utility and 99% from the collective belief (HODL etc.) which is circular and self-reinforcing, similar to various religions etc. The “full faith and credit of the United States” or the exchangeability of banknotes for gold isn’t the main factor that has been backing the money we use. Real-world currencies that enjoy mainstream adoption in a given area are actually backed by goods and services they can be exchanged for readily in a certain area. Not so for cryptos (excluding services of remote workers such as software developers, which does represent a serious economy). Here is what we would need to do in order to move the crypto space towards web4 and finally gain mainstream adoption of crypto in the real world: https://intercoin.org/proposal.pdf https://intercoin.org/proposal.pdf
- imron 5y agoI'm not sure the situation is comparable to Terra. If you can't read the Y-axis on a graph, and you only look at the last 7 days, then it looks like Tether has gone off a cliff. If you read the Y-axis you'll see it's barely moved, and if you zoom the graph out, it's barely a blip compared to previous deviations in price. Now it may well be that Tether is also heading to zero, but it's very different from the Terra fluctuations. Check the following graphs for both 7 days and all time 0: Tether https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/ 1: Terra https://coinmarketcap.com/currencies/terrausd/ https://coinmarketcap.com/currencies/terrausd/
- chrischen 5y agoA lot of people are using this post and news to air their completed unrelated grievances on crypto and Tether... but you are completely right. This is non-news unless the Tether company starts failing to deliver $1 for a tether.
- dropnerd 5y agoif crypto groups were holding ust and adjusted to usdt, they could be in an uniquely vulnerable spot. not all dips are created equal
- irjustin 5y agoWhile the graphs are different, it really comes down to sentiment and trust. Effectively something that was not supposed to happen is starting to happen. TerraUSD's de-peg wasn't supposed to happen and combined with Luna, it was dragged it way down fast. Knock on effect being USDT which basically sold as too big and too collateralized to fail has shown weakness in the armor. If there's a run on USDT, you would expect it to go to BTC, ETH. Then if people start saying they want their money out all together then the run on BTC, ETH would decimate the market as a whole. USDT will be a lot harder to take down - conversely if it falls, it'll take so much more with it.
- tome 5y agoIt's a stablecoin. It's not supposed to move at all!
- rinze 5y agoI'll just repeat r/buttcoin's mantra: This is good for Bitcoin. Get the popcorn, we're in for a ride (I hope.)
- sdgdfgsfdfgsdfg 5y agoArbitrageurs putting up buy walls at 0.98. Just wait until they ate up Tether's liquidity.
- edem 5y agoDai and USDC is trading at a premium. The market is deciding which ones will survive.
- itsthecourier 5y ago
- Animats 5y agoTether is back up to around $0.98, but volume is high. Somebody is pouring cash into Tether to support the price. Similar over at UST. Price is back up to $0.60, but volume is far above normal. Remember, with a stablecoin, there is no upside to holding. Any indication of risk means it's time to get out. Even if Tether has enough reserves to get the price back to $1, there will be substantial cashing out. That's why a stablecoin has only two stable points: 1 and 0.
- ForHackernews 5y ago> Somebody is pouring cash into Tether to support the price Is that true? Where is this price coming from? Unregulated exchanges can display whatever numbers they want on their ticker, right?
- can16358p 5y agoThey can display (if they are not DEXes) though any arbitrage bot will be triggered literally in milliseconds to sell at that price, in which the exchange either has to authorize the trade (so it really is at that price then) or fail the transaction with some error which would instantly smell fishy.
- deleted 5y ago[deleted]
- 22c 5y agohttps://twitter.com/tether_to/status/1524652531170881537 https://twitter.com/tether_to/status/1524652531170881537 Surely this is related
- tqlplan 5y ago
- Proven 5y ago
- Canada 5y agoMy prediction: Tether is not losing peg.
- rvz 5y agoUnsurprising. [0][1] How are the people who bought BTC at $69K 1 year ago with their life savings? [0] https://news.ycombinator.com/item?id=30057769 https://news.ycombinator.com/item?id=30057769 [1] https://news.ycombinator.com/item?id=27206314 https://news.ycombinator.com/item?id=27206314
- t_mann 5y agoThe one thing that I can't wrap my head around with Tether is: where did it all go? Tether must have been paid tens of billions in fiat dollars, and not even their bankers can say where those are. There's only so many hundred millions you can put into villas, cars, yachts and parties before it's inconceivable that it wouldn't get noticed. When it comes to crypto overall, my impression is that it needs to get bad before it can get good. There are benefits to being able to make binding promises to strangers using open source software, but I see that more as a public benefit than as something to become ultra rich on. BTC, and with it all crypto, MCAP grew massively on the back of largely non-existent funds (Tether), and that's the part that needs to go.
- Dagonfly 5y ago> Tether must have been paid tens of billions in fiat dollars Do they? That's an honest question. They only provide attestations and no audits. And those only showed a lot of Commercial paper. If they sell an exchange $1B for Commercial paper related to that exchange. It costs the exchange a lot less than buying $1B in fiat dollars.
- t_mann 5y agoThe way I understand their business model is: you pay $1 into our bank account, and we'll give you 1 USDT on one of a few chains. We'll invest it in low-risk securities, keep the gains, and give you back $1 for the USDT if you come asking. At least that's the theory, I think they've also been doing lending, it's notoriously shady. But still, a lot of people probably paid them real $ for there to be 78bn Tether. Edit: in all likelihood, those CPs don't exist, btw. There was a good article by Bloomberg who tried to track those down.
- Dagonfly 5y agoThe point I wanted to make is that many (most?) retail customers deposited USD at a CEX like Binance/Bitfinex in exchange for USDT. So your retail fiat dollar didn't go directly to Tether Limited, the exchange bought liquidity from them.
- randomsearch 5y agoThis isn't just about Tether, this is it.
- vishnugupta 5y agoTether just burnt $600M worth of USDT, which I think means their reserves have dwindled by $600M. Am I reading it right? https://twitter.com/whale_alert/status/1524675158836973570 https://twitter.com/whale_alert/status/1524675158836973570
- xur17 5y agoDoesn't that just mean $600M was redeemed? A reduction in the outstanding USDT sounds like a positive sign.
- nevi-me 5y agoThis will be a defining moment for stablecoins, and will test whether Tether is truly backed by liquid assets to the $80bn equivalent. The UST collapse will accellerate regulations, with Ms Yellen already commenting on stablecoins. More regulations will force USDT to show its hand with its assets, likely proving that it's technically insolvent. That will collapse it. What about USDC? As long as they act ethically, they need 1 'physical' dollar to mint 1 USDC. If USDT is backed by mostly air, then the USDT > USDC migration can't happen without actual reserves changing hands. This likely means a crypto collapse, as more people will learn that value < money.
- rswail 5y agoSo let me get this straight: There are bitcoins. They get mined and etc. There is ethereum, it processes transactions and people pay for the processing with "gas". Gas is ETH. ETH need to be mined and etc. This could all happily work in a self-contained world, where there's no actual underlying assets reflected in BTC or ETH. But that's not "real" as in, gains/losses can't be turned into fiat currency, which is the government approved way to pay taxes and debts. So now someone wants to be able to convert BTC/ETH/XYZ/ABC into USD (or AUD or CAD or etc "trusted" fiat currencies). So the stablecoin is created, supposedly backed 1:1 with fiat USD. However, there's only vague assertions that this is correct and none of the bank regulation that ensures that banks actually are backed. That stablecoin, Tether, is unaudited and no one actually knows what it holds. But for some reason, people "trust" it. Now there's another "stablecoin" called Terra, which isn't backed by any assets in the real world. It's entirely "backed" by the fact that it can be converted "freely" into Lunas. For an even more abtruse reason, people were "trusting" Terra. Then the tide went out and Terra/Luna is actually naked. Now that has focused attention on Tether and people are testing it. Because Tether has real assets, it can (for now) convert at 1:1. But it has artificial limitations on that conversion, limiting it to a minimum of USD100K. So unless you have 100K of Tether, you're relying on finding some other buyer of it if you want to sell. People are desperate to sell, so the "price" of Tether is dropping relative to its USD peg. Someone is buying that Tether on the market, accumulating at least 100K and then going to tether and converting to real USD. But Tether have put a whole bunch of artificial time restrictions on that conversion, which means that the tide hasn't gone out yet. When it does, either Tether does have 1:1 backing of all the Tether out there, in a way that can be easily liquidated so that it can pay out, or it won't, and the "peg" will collapse. When that happens, anyone holding Tether is left holding the bag. And that means anyone that had BTC "backed" by Tether is out of luck, so is anyone with ETH, or any of the other endless coins out there. So the whole thing collapses, those that get out early and convert to fiat will be rich and everyone else screwed. Gee, sounds like a standard bank run but with extra steps and without the Fed.
- eru 5y agoThe linked discussion is pretty inane, and sadly doesn't display much knowledge of monetary history.
- alexb_ 5y agoThe entire concept of a "stablecoin" reminds me a lot of something from SIGBOVIK 2014. Keep in mind, this was written in 2014, before any stablecoins actually existed, and that SIGBOVIK is supposed to be a joke conference where people present extremely silly ideas as if they were real breakthroughs. > DollarCoin: We propose skipping the middleman and providing direct proof-of-dollar with a blockchain that consists of videos of burning US $1 notes. Each video will be unique as the hash of every block header is required to be written on the dollar bill to be burnt; the block header includes the previous block’s hash, which means that each block is forced to build on every previous block, forming a valid blockchain http://sigbovik.org/2014/proceedings.pdf http://sigbovik.org/2014/proceedings.pdf The fact is, people have convinced themselves that this is somehow a good idea. And then half the time, the person behind it doesn't actually burn any money and just arbitrarily mints coins. It's absolute lunacy.
- alexb_ 5y agocryptocurrency people telling me that burning money in exchange for a token is a good idea actually is the last thing I expected when I posted this yet, somehow, I am not in any way, shape, or form surprised
- hbbio 5y agoMind that... it actually was a good idea. Until people started cheating with it, exactly as you say. Tokenized dollars allow to benefit from the tech (smart contracts), which is itself great and opens a lot of possibilities. What's not is: Ponzi schemes (Terra), crooks (Tether?). Edit: There are valid stablecoins like USDC (they hold sufficient reserves) and even valid algorithmic stablecoins e.g. LUSD, backed by Ethers and with a legit protocol for ensuring over-collateralization that is also immutable.
- ptero 5y ago> There are valid stablecoins like USDC (they hold sufficient reserves) Those reserves are sufficient until they are not. There are always risks of losing the peg and anyone investing in them should be aware of and track the main ones. My 2c.
- sdgdfgsfdfgsdfg 5y agoIt will probably go down like this: Tether inevitably drops to $0, evaporating in the order of $100B of funny money. Crypto market collapses, trading is halted on the large platforms, big exchanges go bankrupt. This shocks the regular markets to a significant degree. Calls for strict regulation will follow, ending the state of crypto as we know it today.
- nailk 5y agoTether didn’t lose its peg. It’s redeemable at $1 via Tether’s site as usual. The market price difference is making arbitrageurs more rich, that’s all. These headlines are FUD.
- xwdv 5y agoMany people killed themselves after Terra lost all value and I can only imagine many more will follow when Tether goes to zero.
- DebtDeflation 5y agohttps://finance.yahoo.com/news/tether-reduced-exposure-commercial-paper-085753111.html https://finance.yahoo.com/news/tether-reduced-exposure-comme... The CTO of Tether issued a statement earlier today stating that Tether has significantly reduced its exposure to commercial paper and now holds the majority of its reserves in US Treasuries. That should be super easy to verify, yet he refuses to release any details, saying to just wait for their next quarterly update on reserves (which in the past has just been a one pager someone typed into Excel).
- Synaesthesia 5y agoVery suspicious behaviour, which has been ongoing for some time. Hardly inspiring of trust.
- ceejayoz 5y agoGiven Tether's past relationship with the truth, I'd imagine "significantly reduced exposure to commercial paper" means "most of it is now worthless".
- Loic 5y agoMadoff used the same approach to tell everything was safe: "By purportedly selling its holdings for cash at the end of each period, Madoff avoided filing disclosures of its holdings with the SEC, an unusual tactic.".[0] This way, each time the market was down, he would answer, me paraphrasing: "nothing to worry about, I was liquid". Seen from outside, this feels the same... now suddenly backed by something way more secure, no external audits. As somebody totally outside of the crypto currency bubble, I looked for the first time today at the official market capitalization of these currencies, these are mind blowing, I simply do not understand how they can be so. [0]: https://en.wikipedia.org/wiki/Madoff_investment_scandal https://en.wikipedia.org/wiki/Madoff_investment_scandal
- lvl102 5y ago(1) Tether is probably skimming a few percentages off of top trying to charge people for the run. (2) It might not and this is the beginning of the end. And I am so glad it is finally here. I am so sick of crypto.
- makoto12 5y agocrypto noob over here, i'm a bit confused with all the noise i'm seeing, if someone could explain. I'm hearing that Tether is still honouring $1 withdrawals, over a certain amount i think $100k. What's stopping me from buying 100K in tether at 98c, for $98k and then redeem it from Tether at $100k, making $2k with zero risk? Surely i can't do that because that would autocorrect the price back to $1 ?
- xur17 5y agoYou absolutely can do this (I just signed up for an account). That said, it isn't 0 risk (nothing is) - they could technically fail to redeem, and then you'd lose your money. If you think they will redeem, this is indeed a good trade.
- derac 5y agorisk exposure to that not being honored and tether crashing.
- makoto12 5y agoIs there evidence that it's currently not being honored?
- derac 5y agoafaik it takes several days to fulfill
- makoto12 5y agoyikes, ok that's scary
- phphphphp 5y agotether have not been audited, their reserves are misrepresented, they introduced arbitrary redemption limits (100k) and all sorts of much worse stuff like losing money when their banking partners disappeared and backing tether with investments in crypto projects that rely on Tether. Very rarely do Tether ever redeem Tethers for dollars, they pretty much only print, so the question should not be “are they currently honouring redemptions” but “will they be able to honour redemptions at some point in the future when lots of people are trying to redeem because of arbitrage?” — best case you can expect it to take weeks for Tether to actually action any request you make. The risk mitigation is that you can always sell back into the market, assuming Tether holds its value (I’m very cynical about Tether but I doubt it’ll break its peg in the next few weeks because they’ve become experts at manipulating it in a way that UST was not) which I think is a fairly safe bet (in the context of “bets on crypto” not general financial bets, compared to real financial bets this is batshit crazy). So… relying on Tether to redeem is a terrible idea, but if you are confident the market value will hold, it’s not a bad bet to make as the downside is… a small percentage loss on selling back into the market. Not a bet I would make though, I wouldn’t touch tether with my worst enemies money.
- KoftaBob 5y agoWhat exactly is the point of stablecoins that are pegged to the USD? Why wouldn't I just accomplish the same function with an actual USD?
- nstart 5y agoIt's easy to trade on crypto platforms with stable coins. A lot of people will typically buy tether and then use tether to buy other coins using the exchange of their choice. It works the other way around too when you want to store your value in a predictable form if a currency like bitcoin is doing a dip. Just convert your bitcoin to usdt and hold it there till btc starts going back up.
- KoftaBob 5y agoSo it's meant to bypass the slowness of ACH and other aspects of the traditional banking system that the USD is limited by? Interesting.
- panphora 5y agoAlso, a lot of banks wouldn't work with crypto companies to provide them liquidity. So, stablecoins came in and said: "we'll be your liquidity!" It only works if the stablecoins can get you your USD back at the end of the day though, which is what's being tested right now.
- jqpabc123 5y agoThe sad reality is that many poorer and financially illeterate people have been tricked by VCs and other grifters ... The sad reality is that many poorer and financially illiterate people have become partners with the grifters by preaching the crypto religion to anyone who would listen --- knowing that every new convert would likely do the same and help push their own crypto assets higher. This is nothing new --- it is the same marketing scheme that religion has been using for centuries.
- galuggus 5y ago"Only when the tide goes out do you discover who's been swimming naked."
- matt321 5y agoThey created billions of coins and offloaded them for 1$ each and then they allow the (or cause) the price to plummet. How is this not a rug pull?
- deleted 5y ago[deleted]
- norswap 5y agoThe speculation in this thread is silly. While Tether is certainly opaque (you could say shady), it's incredibly doubtful that it's unbacked to a significant extent. Even if it's only backed at 50% (which would be really shocking to me), it would take 39B$ to flow through the system to actually cause a depeg. That's very unlikely, and just the logistics of it means it would leave a lot of time to Tether to clear the air. Consider that being "nakedly" unbacked (no underlying assets) in any meaningful capacity would qualify Tether's leadership for a quick trip to prison — as they've repeatedly said they were fully backed. The real risk is them sitting on "commercial paper" (short term debt) that is now worthless or significantly discounted. I still doubt they would have lost more than 50% of reserves this way. I think it's also interesting that SBF (FTX's founder) is fairly confident in Tether (of UST he said months ago "we know how this ends"). He seems better informed than most, and it seems unlikely to me he'd stake his company (which has extensive dealing with Tether) on a system that cannot be sustained. I have no chip in this fight, and honestly, I do agree Tether is riskier than alternative, which is why I've never even held it. But UST and Tether are vastly different beasts in term of risk profiles.
- ceejayoz 5y ago> Consider that being "nakedly" unbacked (no underlying assets) in any meaningful capacity would qualify Tether's leadership for a quick trip to prison — as they've repeatedly said they were fully backed. They said on their website they were regularly audited, too, and never completed one. There’s years worth of clear lies from Tether.
- hanniabu 5y agoThey did internal audits but not external ones, which of course it's what everyone assumes
- ineedasername 5y agoThey claim they did, but the problem is trust. If they were dishonest about their collateralization there's no reason the believe they'd be honest about the audit results. And the firm they hired is itself under investigation. They'd have to be much more open to convince me they're as well backed as they claim.
- superkuh 5y agoThese traditional finance scams aren't cryptocurrencies. These are normal financial world shady dudes dressing up their scams in cryptocurrency jargon and buzzword to attract marks.
- ineedasername 5y agoAs of 12:15:00 UTC it's back to $0.99. People in the US are just starting to hit their computers though so it will be interesting to see what shakes out there on the news it slid so much earlier in the morning.
- Traster 5y agoThe thing that I think some people miss about Tether is that it's not about whether it is backed enough it's either fully backed or it isn't. If it's not, it's not a question of whether it's back enough to weather this storm, it's about whether the people running it think they can weather this storm. If they think they can keep it running they'll sell whatever backing they have and keep the peg. But if they even think there's a decent chance they can't permanently sustain the peg then the best thing for them to do is take the backing and run, not sink it into a stable-coin they now know isn't going to work. That's going to happen way before they run out of money. Let's say for example, Tether is 20% backed and there's $100Bn of coins so the backing is $20Bn, and people start flooding out of it. Let's say $10Bn floods out. So the guys running it have handed out $10Bn. They now have $10Bn left, and money is still flooding out. Do they really continue to hand over the cash or do they say "Well, the whole thing is about to explode anyway, I'd rather keep the $10Bn cash I've got left". At which point the holders of the coin have to play "Find these fuckers and sue them" which will be difficult since they've got $10Bn to fight/flee/hide.
- encryptluks2 5y agoThat'd be great to watch. It is amazing how quick people turn on each other once shit hits the fan. They'll all be pointing fingers at each other full circle.
- maxerickson 5y agoAnd then, what are the odds they have already taken the money they plan to take.
- id 5y agoThe problem with Tether is that for all we know, it could be completely unbacked and therefore worthless.
- t0mas88 5y agoWell not completely, in the sense that they seem to be exchanging USDT for USD at a 1:1 ratio if you show up with 100k or more. There have been no reports of people that tried to get that and didn't get it. On the other hand maybe people holding a lot of USDT wouldn't not want to tell anyone else if they were unable to redeem it before they had sold it all on the exchanges...
- ineedasername 5y agoUSDC volume is up 50% right now and even hit a 6-month high in value. Either Coinbase is doing extremely large $$$ of preemptive defense or people are flocking to a stablecoin with a more trustworthy backer whose collateralization claims are less questionable.
- ineedasername 5y agoLet's put on some tinfoil hats & speculate a bit: What groups might have the resources to attack the peg on UST & USDT? Is anyone out there bragging about the $$ they're making by demonstrating that these coins aren't quite so stable? (Personally I have no idea, and wouldn't even know where to look to find chatter about it, hence the question)
- throwxxxaway 5y agoI don't have much understanding about Tether/Crypto. You can go to Tether and they will give you 1 dollar for 1 USDT? Then, who was selling 1 USDT for $0.95 ? Why didn't those people juts go to Tether and get 1 dollar for 1 USDT?
- dagw 5y agoFrom Tether's homepage: "verified customers (in allowed jurisdictions) are able to redeem USDt on Tether.to for USD$1." A lot of people aren't "verified customers" in "allowed jurisdictions".
- mrhektor 5y agoIs what's happening comparable to a bank run? Tether didn't have a 1:1 ratio with USD, and suddenly everyone is trying to liquidate? That seems to be the most simple explanation.
- crocwrestler 5y agoI'm feeling pretty smug right now, not gonna lie. I have tried to keep an open mind about crypto, but generally the arguments I've encountered for crypto have boiled down to "you just don't get it" and said by people with a huge vested interest in crypto.
- whimsicalism 5y agoTether is 0.995 cents. Bet you it will go back up. And I don't even think Tether is a particularly good idea/stablecoin, something like Dai is much more trusted, has an incentive scheme that makes sense (ie. not Terra/Luna) and doesn't rely on a central authority
- hypertele-Xii 5y agoTulip mania. See also: Cryptocurrency.
- qgin 5y agoI hear so much about why fiat is bad because of money printing. So it’s wild to me that so much of Bitcoin is basically propped up by Tether printing.
- xur17 5y agoThis title does not seem to match the website that was linked to. It's certainly generating interesting conversation, but I'm a bit confused.
- notananthem 5y agoNothing is FDIC insured. All your Coinbase assets can vanish and you'll be at the back of the line. Crypto is all speculative especially if you don't hold the keys.
- topper-123 5y agoStablecoins must be the must crazy investment in the modern era, right after NFTs: by buying them, you’re essentially betting that the stablecoin can maintain its peg. By not buying them and keeping dollars, you get the same outcome except safer. It’s just nuts.
- whimsicalism 5y agoYou are thinking from a very American/EU centric perspective where dollars are easy to come by.
- skizm 5y agoUSDT actually has a cash out mechanism directly with Tether (the company), right? If it is trading at 0.9935 (coinmarketcap showing this now), what's stopping people from buying 1 million USDT and selling back to the company to make a $6500 profit? Is moving it around very slow? Is the cash out mechanism limited to X per day or something?
- t0mas88 5y agoYou would need to move 1 million into some crypto exchange, there is a bit of risk there and it takes significant amounts of time. Then go and buy 1 million of USDT, you can see the live orders here, there are several buy orders even above a million for prices between 0,98 and 0,99: https://ftx.com/trade/USDT/USD https://ftx.com/trade/USDT/USD And then you need to take your 1 million USDT to Tether, become a verified customer (I'm guessing this takes time as well) and exchange them for real dollars. Which they will then probably take a few days to deliver to you. So I can see how that may make sense for someone that's already through most of those steps and at lower prices like the 0,95 from this morning. But at the current 0.9944 sell price I don't think it's worth it for many people.
- carlosdp 5y agoThis title is... wrong. It's entirely normal for stablecoins to fluctuate in minor ways like this [1], even USDC (which is literally backed by actual US dollars in a bank account) fluctuates +- 1 cent regularly. This is because these prices come from a variety of exchanges trading these currencies, with different supply pools. Arbitrage remediates this very quickly (Tether, at time of writing, is at $1.00). Not defending Tether, it's backing is definitely sketchy, but there's no indication it's in trouble at the moment, and this being on the front page is incredulous to me since it seems to be just some random dudes pulling up Google Stocks and speculating? [1] https://www.coingecko.com/en/coins/tether https://www.coingecko.com/en/coins/tether (look at 14d window)
- uniqueuid 5y agoThe very chart you linked shows a dramatic increase in volatility over the last days. That surely points to increased stress tether is under.
- thebean11 5y agoOr it's just the result of a massive increase in volatility in the crypto market in general. I guess it depends what you mean by increased stress on tether.
- carlosdp 5y agoYea not debating that, nor that it wouldn't lose it's peg if things get unstable enough. Just that the title makes it look like it's in a death spiral like TerraUSD, which there doesn't seem to be indication of right now at all. The increased volatility (which remains in the < 1 cent range) can easily be explained by general market volatility right now. That said, again, not defending Tether in general. I hold 0 USDT, always recommend USDC.
- ProjectArcturis 5y agoThat chart shows Tether hit a 3.5-year low today. Hasn't been this low since the last crypto crash. No guarantee that will continue, but there are definitely some very smart, very rich people looking at how to break Tether.
- bendtheblock 5y agoYoung suicidal people in the Defi, LUNA and UST Reddit forums yesterday was hard to watch. This will only get worse. Regulation needed https://webtwoboomer.com/real-people-are-getting-hurt-by-fake-crypto-90a26bbe7589 https://webtwoboomer.com/real-people-are-getting-hurt-by-fak...
- davewritescode 5y agoThis demonstrates my biggest issue with the crypto ecosystem in general. We've combined financial complexity, technical complexity and a lack of regulation and created a fruitful environment for scammers and con-artists to run amok. 99%+ of crypto investors have little idea how the system works on a financial or technical level and it's one of the reasons I've personally avoided it. I probably have reddit comments from years ago pinning Tether as a major risk to the entire bitcoin ecosystem. If you can't reliably move bitcoin to and from USD then Bitcoin's utility starts to rapidly approach 0.
- vmception 5y ago> If you can't reliably move bitcoin to and from USD then Bitcoin's utility starts to rapidly approach 0. But you can whether Tether exists or implodes or goes rogue or not. Take 5 minutes to understand why and come back with a better understanding of the crypto ecosystem? You're one of the 99%+ that you're referring to, that's just not trading.
- gws 5y agoCome on guys, do some research, Tether now publishes audited reserve reports as part of the settlement with the US Department of Justice. ~70% of tether in circulation are backed by Treasury Bills and cash deposits, so immediately redeemable. The other ~30% in short term commercial paper can pose a bit of risk but unless they did something really stupid (and they are all but stupid) nothing to put the backing at risk. Tether is here to stay and if you feel giddy at the idea of it going down ask yourself why you are rooting for someone to fail... https://tether.to/en/transparency/#reports https://tether.to/en/transparency/#reports
- donavanm 5y agoCan you please clarify what you mean by “audited reserve reports”? The best ive heard of is “attestation” or “assurance.” From the very page you linked: > Tether Holdings Limited do regular assurance opinions every quarter And from the latest report: > We have examined the assertions by the management of Tether Holdings Limited that its Consolidated Reserves Report as of 31 December 2021 at 11:59 PM UTC (the “CRR”), a copy of which has been included in Appendix 1 to this report, is correctly stated based on the balances set out therein. Thats the account attesting that yes, they were provided with a report. The report, as stated, is internally consistent. Where does it say the independent accountant audited the holdings?
- tobltobs 5y agoWhat is your research telling you about those red flags: Being "audited" by a company nobody ever heard of, not disclosing what commercial papers they hold for "privacy reasons", being the seventh-largest holder of commercial papers without any traders seeing Tether buying anything.
- ouid 5y agoTether is an unregulated, uninsured, bank
- EVa5I7bHFq9mnYK 5y agoTether occasionally fluctuates within 0.96-1.04 range, you can see that today at 7am it was at 1.03. The poster was able to catch a rare short lived moment when it dipped to 0.98. This is just bad faith propaganda.
- Barrera 5y agoThe actual article has the completely different title "What backs a currency? Terra Luna drops nearly 100%" It's from a forum shilling yet another token experiment ("Intercoin"). Zero source material presented. Zero analysis. Zero value to those who don't care about Intercoin. This article is of abysmal quality. I do appreciate the emotions the headline induces. But if it's information ye be after, this ain't the place.
- dudeinjapan 5y agoDon't worry guys. Tether is backed by secret sauce.
- tgsovlerkhgsel 5y agoCurrently, Tether is back at 0.997.
- m12m3kg 5y agoFunny to see such a post from a project with a whitepaper that starts with "It enables communities around the world to issue and manage their own currency-as-a-service (CaaS), to circulate among their local population. This leads to stronger communities, greater sustainability, less poverty, and more productivity." Does intercoin cure cancer?
- naveen99 5y agoEven if tether bought only treasuries, if people then bought bitcoin and then sold those bitcoin to buy treasuries, and then treasuries went down in price due to rising interest rates, tether will become under collateralized… I mean you can’t just lever up 2x on treasuries risk free… a 10x leveraged position on 30 year treasuries would have blown out an account within a few months…