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And back up to 0.99 on Coinbase as I type this: https://pro.coinbase.com/trade/USDT-USD https://pro.coinbase.com/trade/USDT-USD Meanwhile, Alameda (SBF/FTX's t

And back up to 0.99 on Coinbase as I type this: https://pro.coinbase.com/trade/USDT-USD https://pro.coinbase.com/trade/USDT-USD Meanwhile, Alameda (SBF/FTX's trading arm) is apparently shorting Tether. https://twitter.com/mhonkasalo/status/1590665714490544128 https://twitter.com/mhonkasalo/status/1590665714490544128 Which is particularly interesting since they're known to be one of Tether's largest customers. The only rational explanation I can think of is that they think Tether is primed to tank, and they're trying to beat the rush to the exits like Goldman Sachs pouncing on Bear Sterns.

mjnaus 4y ago
Large holders of Tether would be pretty dumb to short it, as they'd be shooting themselves in the foot. If Almeda indeed knows something the rest of the market doesn't, they would (assuming rational action) quietly be exiting their position.
- theCrowing 4y ago
  depends on the payout if your short is better positioned than your holdings...you short. Like Deutsche did 2008.
- forgetfulness 4y ago
  They could do both, cut their losses by selling and selling high, buying low other people's Tether, depends on how much of their own holdings they can liquidate.
throwaway294566 4y ago
Shorting tether can simply be a hedge against falling tether if you are holding large amounts. Doing that with stocks is completely normal and nothing to raise an eyebrow about.
- edf13 4y ago
  I'd say it's more of an issue that they are still trading when potentially insolvent
- wizeman 4y ago
  Out of curiosity, why is shorting better in that situation rather than just selling part of what you're already holding? I mean, why is being long $100k USDT and short $50k USDT at the same time better than just being long $50k USDT? I don't have trading experience so this is not very intuitive to me. Edit: oh, I think I get it. So if you were short $SOMETHING/$USDT then you're effectively long $USDT so if $USDT falls/crashes (i.e. loses its peg) even though $SOMETHING remains equally as valuable (as measured in other currencies), then you could lose a lot of money even though the underlying value of $SOMETHING hasn't really changed. So you could short $USDT/$USD to mitigate $USDT crashing when you're only interested in shorting $SOMETHING. I guess that makes sense?
  - jgalt212 4y ago
    sometimes you do this to delay tax events.
irusensei 4y ago
Did I count the zeroes right? How is a 250k short worthy of notice. It’s more like FTX still gambling using the last scoop of their customer’s money.

mjnaus 4y ago

Large holders of Tether would be pretty dumb to short it, as they'd be shooting themselves in the foot. If Almeda indeed knows something the rest of the market doesn't, they would (assuming rational action) quietly be exiting their position.

theCrowing 4y ago
depends on the payout if your short is better positioned than your holdings...you short. Like Deutsche did 2008.
forgetfulness 4y ago
They could do both, cut their losses by selling and selling high, buying low other people's Tether, depends on how much of their own holdings they can liquidate.

throwaway294566 4y ago

Shorting tether can simply be a hedge against falling tether if you are holding large amounts. Doing that with stocks is completely normal and nothing to raise an eyebrow about.

edf13 4y ago
I'd say it's more of an issue that they are still trading when potentially insolvent
wizeman 4y ago
Out of curiosity, why is shorting better in that situation rather than just selling part of what you're already holding? I mean, why is being long $100k USDT and short $50k USDT at the same time better than just being long $50k USDT? I don't have trading experience so this is not very intuitive to me. Edit: oh, I think I get it. So if you were short $SOMETHING/$USDT then you're effectively long $USDT so if $USDT falls/crashes (i.e. loses its peg) even though $SOMETHING remains equally as valuable (as measured in other currencies), then you could lose a lot of money even though the underlying value of $SOMETHING hasn't really changed. So you could short $USDT/$USD to mitigate $USDT crashing when you're only interested in shorting $SOMETHING. I guess that makes sense?
- jgalt212 4y ago
  sometimes you do this to delay tax events.

irusensei 4y ago

Did I count the zeroes right? How is a 250k short worthy of notice. It’s more like FTX still gambling using the last scoop of their customer’s money.