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“Because there hasn't been a run.” There were over $10b in redemptions over a couple days in may. “They’re definitely insolvent”. Source on the “definitely”?
by dereg 4y ago
“Because there hasn't been a run.”
There were over $10b in redemptions over a couple days in may.
“They’re definitely insolvent”.
Source on the “definitely”?
“but that only causes immediate failure when enough people try to withdraw at once”
You mean illiquid, not insolvent.
- JumpCrisscross 4y ago> There were over $10b in redemptions over a couple days in may The number of Tethers outstanding went down by $10bn. That says nothing about redemptions. They could have just cancelled Tether held in affiliated or random peoples’ wallets, we don’t know. > You mean illiquid, not insolvent If I have a $10bn debt due and $10bn of real estate, I’m illiquid. If I have a $10bn debt due and my real estate is worth $8bn, I’m insolvent. All evidence to date points to Tether being insolvent.
- ceejayoz 4y ago> There were over $10b in redemptions over a couple days in may. This demonstrated they had at least $10B of the claimed $80ish at the time. Bernie Madoff was able to fulfill fairly hefty redemptions, too, until he ran out and the whole thing collapsed. Tether has yet to hit that point, but it's not evidence they've got all the money they claim to possess. We don't know how close to collapsing that $10B took them.
- matthewdgreen 4y agoWe also don't know how much of that $10B redemption resulted in real cash transactions, and how much might have been redeemed to Tether-affiliated business without a cash transaction taking place.
- celestialcheese 4y agoThis. Doesn't tether require >$250k USD value of tether to request cash redemption?
- devmor 4y agoBeing insolvent would also make them illiquid.
- wmf 4y agoI would consider a run on Tether to be $40B of redemptions or more. Even if they're not fully backed they probably have some assets.