3 ms·
If Tether blows up, all of the exchanges with USDT pairs will be holding bags of various sizes. Where do you expect one would be able to redeem the USDC without
by jimmydorry 4y ago
If Tether blows up, all of the exchanges with USDT pairs will be holding bags of various sizes. Where do you expect one would be able to redeem the USDC without significant risk of the exchange folding before paying out your USDC redemption? If the past is anything to go by, in quick order, exchanges will limit withdrawls ("cash" balances included).
- renewiltord 4y agoYou could mean two things: 1. I won't be able to liquidate the ETH to USDC and transfer it to you => We can force me to liquidate using a DEX or Uniswap pool. Alternatively, if you're very worried about this, I'll just charge a higher premium and post USDC into the account. That's just a pricing problem 2. You won't be able to redeem the USDC I give you => You'll have to trust Circle here, yeah. If you don't trust their audits, we can use another stable coin, but I think USDC is more trustworthy than BUSD and there aren't pairs for ETH to very many other stable coins that have enough volume to keep the spread down so I can safely liquidate
- jimmydorry 4y agoUSDC can be perfectly fine and 100% backed, but if the only places it can be redeemed at are exchanges, when shit hits the walls all withdrawls will be turned off (cash balances included). What makes you think USDC would be redeemable?