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> The risk-on assets are 12.86% of the reserves, via simple division. Their equity is 0.36% of assets. If their risk-on assets were impaired by more than about
by gzer0 4y ago
> The risk-on assets are 12.86% of the reserves, via simple division. Their equity is 0.36% of assets. If their risk-on assets were impaired by more than about 2.86%, Tether must have (by their own numbers) needed recapitalization. It is not credible that they suffered no serious impairment. Bitcoin, the blue chip cryptocurrency, is down by more than 10%.
> I challenge anyone to find a portfolio construction for digital token investments that possibly survived this environment with only a 2.86% impairment.
Last sentence right there is the nail in the coffin. There is no such possible investment that can exist without recapitilization based on these data.
- grey-area 4y agoYes tether is an obvious lie, and it’s now just a question of when, not if, they collapse.
- jfghi 4y agoAlso curious if it happens instantaneously or somehow drags on.
- wmf 4y agoIf Tether is 87% backed they'll be fine; they can find some way to hide that shortfall. (To be clear this is illegal and I want Tether to die but we need to acknowledge the realpolitik of the crypto market.)
- grey-area 4y ago1. They are not backed at all, esp when coin prices collapse 2. Even if partially backed loss of confidence will be catastrophic.
- MuffinFlavored 4y agowhat would have to trigger the catalyst for their collapse and why hasn’t it happened yet? are they growing stronger or weaker every day?