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This is a dry run of the Tether (USDT) collapse.

realusername 4y ago
I'm also waiting for the USDT collapse. It was very close this time but I guess I'll have to wait more.
wing-_-nuts 4y ago
If and when that happens (and let's be honest, it probably will) a whole lot of people are about to see that bitcoin has no clothes.
NelsonMinar 4y ago
Tether itself also had a dry run of the Tether collapse. It seems to mostly be holding steadyish in the past few days, but the dip down to $0.95 is a giant screaming alarm. It's still only at $0.9990; before the crisis last week it was pretty much always at $0.9998 or above.
- id 4y ago
  Similar or worse drops happened in 2016, 2017, 2018, and 2020. In other words, business as usual for Tether.
  - georgeecollins 4y ago
    Yes, and like $50b-$100b worth of trades each day are in USDT, with a market cap of $73b. That's according to coinbase, I can't verify it. When I look at people talking about trading crypto currency on reddit they just don't seem that sophisticated. I am not bashing on crypto, but this seems like a systemic risk people are oblivious to. It won't wipe everything out, but it can't be good for the price.
nathanvanfleet 4y ago
"Dry" in what way exactly? It seemed rather wet with the enormous amount of loss?
- seattle_spring 4y ago
  I think you're getting Terra and Tether mixed up. Parent was saying the Terra explosion was a dry run for the forthcoming Tether implosion.
helsinkiandrew 4y ago
Tether is atleast supported with real world assets (USD/bonds etc). The amount and quality of the assets might be debatable but it can't go into a death spiral to zero like Luna and UST.
- onlyrealcuzzo 4y ago
  Only 3.87% of Tether was backed by dollars: https://siliconangle.com/2021/05/13/tether-releases-reserve-breakdown-3-87-us-dollars/ https://siliconangle.com/2021/05/13/tether-releases-reserve-... So it could drop pretty far.
  - jpmattia 4y ago
    > Only 3.87% of Tether was backed by dollars For comparison: Citibank had only 11.73% Tier 1 capital in their 2021 report: https://www.citigroup.com/citi/investor/quarterly/2021/ar20_en.pdf https://www.citigroup.com/citi/investor/quarterly/2021/ar20_... Couldn't find a breakout of their Tier 1, but it includes high-quality credit items as well, so actual dollars is well below 11.73%. So in other words: SiliconAngle.com is writing clickbait and doesn't understand modern banking.
    - bpt3 4y ago
      Did Citibank claim that its value was one-to-one backed with U.S. dollar reserves until they were caught not doing so? If not, they're probably not a relevant comparison to Tether.
      - onlyrealcuzzo 4y ago
        Irrelevant because for >99% of depositors (NOTE - not total deposits) FDIC insurance will pay them out in the event of a bank run. For the vast majority of users - the difference in 1:1 backing and FDIC insurance is irrelevant. This is the reason you'll almost certainly never see a global bank run. It's the reason why we probably will eventually see a Tether bank run.
calbruin 4y ago
Tether has never been audited. The market is about to audit them. Watch the tether market cap...

I'm also waiting for the USDT collapse. It was very close this time but I guess I'll have to wait more.

If and when that happens (and let's be honest, it probably will) a whole lot of people are about to see that bitcoin has no clothes.

NelsonMinar 4y ago

Tether itself also had a dry run of the Tether collapse. It seems to mostly be holding steadyish in the past few days, but the dip down to $0.95 is a giant screaming alarm. It's still only at $0.9990; before the crisis last week it was pretty much always at $0.9998 or above.

id 4y ago
Similar or worse drops happened in 2016, 2017, 2018, and 2020. In other words, business as usual for Tether.
- georgeecollins 4y ago
  Yes, and like $50b-$100b worth of trades each day are in USDT, with a market cap of $73b. That's according to coinbase, I can't verify it. When I look at people talking about trading crypto currency on reddit they just don't seem that sophisticated. I am not bashing on crypto, but this seems like a systemic risk people are oblivious to. It won't wipe everything out, but it can't be good for the price.

nathanvanfleet 4y ago

"Dry" in what way exactly? It seemed rather wet with the enormous amount of loss?

seattle_spring 4y ago
I think you're getting Terra and Tether mixed up. Parent was saying the Terra explosion was a dry run for the forthcoming Tether implosion.

helsinkiandrew 4y ago

Tether is atleast supported with real world assets (USD/bonds etc). The amount and quality of the assets might be debatable but it can't go into a death spiral to zero like Luna and UST.

onlyrealcuzzo 4y ago
Only 3.87% of Tether was backed by dollars: https://siliconangle.com/2021/05/13/tether-releases-reserve-breakdown-3-87-us-dollars/ https://siliconangle.com/2021/05/13/tether-releases-reserve-... So it could drop pretty far.
- jpmattia 4y ago
  > Only 3.87% of Tether was backed by dollars For comparison: Citibank had only 11.73% Tier 1 capital in their 2021 report: https://www.citigroup.com/citi/investor/quarterly/2021/ar20_en.pdf https://www.citigroup.com/citi/investor/quarterly/2021/ar20_... Couldn't find a breakout of their Tier 1, but it includes high-quality credit items as well, so actual dollars is well below 11.73%. So in other words: SiliconAngle.com is writing clickbait and doesn't understand modern banking.
  - bpt3 4y ago
    Did Citibank claim that its value was one-to-one backed with U.S. dollar reserves until they were caught not doing so? If not, they're probably not a relevant comparison to Tether.
    - onlyrealcuzzo 4y ago
      Irrelevant because for >99% of depositors (NOTE - not total deposits) FDIC insurance will pay them out in the event of a bank run. For the vast majority of users - the difference in 1:1 backing and FDIC insurance is irrelevant. This is the reason you'll almost certainly never see a global bank run. It's the reason why we probably will eventually see a Tether bank run.

calbruin 4y ago

Tether has never been audited. The market is about to audit them. Watch the tether market cap...