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I am just waiting for the day Tether is attacked is some coordinated way like this which tanks the value. It will be chaos, unless USDC, USDP, maybe DAI can rep
by lampshades 4y ago
I am just waiting for the day Tether is attacked is some coordinated way like this which tanks the value. It will be chaos, unless USDC, USDP, maybe DAI can replace it before it happens.
- charcircuit 4y agoits value will go back up as its value tanking opens a giant arbitrage opportunity where you cash it out for USD.
- vkou 4y agoYou can only take advantage of USDT-USD arbitrage opportunities during a crisis if you ignore this little thing called 'counterparty risk'. Another term for it is 'picking up pennies in front of a steamroller'.
- woeirua 4y agoThe problem with Tether is that the exchanges themselves have huge stakes in it. If Tether were to lose its peg all of a sudden by a significant amount, the exchanges themselves would have huge holes in their balance sheets. They may refuse to allow redemption of any crypto during that period where they're trying to raise capital otherwise they themselves might go bankrupt. A liquidity crisis in Tether could cause a bank run at every exchange, which could take down the entire crypto ecosystem.
- ProjectArcturis 4y agoThe problem with attacking Tether is, how do you keep your money if by crashing Tether you also bankrupt all the major exchanges?
- smabie 4y agoDefi?
- netheril96 4y agoIt’s certainly possible but much less likely than the attack on Luna. Attacking Luna gives the attacker enormous amounts of profit shorting due to the catastrophic failure inherent in Luna/UST design. Attacking USDT requires much larger capital with much fewer profits and may even backfire.