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I wonder: what will be the last straw that breaks confidence in Tether?

Animats 4y ago
Something is happening in stablecoins.[1] Binance and OKX exchanges "temporarily suspended" support for USDC and USDT on the Solana blockchain. Unclear why. [1] https://www.coindesk.com/markets/2022/11/17/crypto-exchanges-binance-and-okx-suspend-support-for-solana-versions-of-usdt-usdc-stablecoins/ https://www.coindesk.com/markets/2022/11/17/crypto-exchanges...
- gruez 4y ago
  But that's in the wrong direction? They're suspending deposits, not withdraws.
  - Animats 4y ago
    Maybe they don't want to be holding those "stablecoins". If you withdraw USDT or USDC, it's off their books and they have no further risk. If you deposit it, and it's credited as US dollars...
- renonce 4y ago
  Solana ecosystem is largely supported by Alameda which we all know went bankrupt. And furthermore Solana network is not quite stable, its validators are costly to operate and it has been down many times so maybe exchanges are losing confidence in the network's reliability.
polygamous_bat 4y ago
Tether will keep pretending to be fine until every last real dollar behind it has been drained. This is what is happening right now, with Binance (and previously FTX) propping up the crypto market with their purported bailouts and pretending nothing is out of place. Then one morning, all of a sudden, it will all come down with some really spectacular fireworks to watch.
- Animats 4y ago
  > Tether will keep pretending to be fine until every last real dollar behind it has been drained. That's how stablecoins work. There are two stable points: 1 and 0. When they break, they go all the way. As soon as the price breaks, there's a rush to exit. We've seen this happen a few times now. Watch the Tether market cap decline here.[1] A billion here, a billion there, and sooner or later you're talking about real money. [1] https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/

Something is happening in stablecoins.[1] Binance and OKX exchanges "temporarily suspended" support for USDC and USDT on the Solana blockchain. Unclear why. [1] https://www.coindesk.com/markets/2022/11/17/crypto-exchanges-binance-and-okx-suspend-support-for-solana-versions-of-usdt-usdc-stablecoins/ https://www.coindesk.com/markets/2022/11/17/crypto-exchanges...

gruez 4y ago
But that's in the wrong direction? They're suspending deposits, not withdraws.
- Animats 4y ago
  Maybe they don't want to be holding those "stablecoins". If you withdraw USDT or USDC, it's off their books and they have no further risk. If you deposit it, and it's credited as US dollars...
renonce 4y ago
Solana ecosystem is largely supported by Alameda which we all know went bankrupt. And furthermore Solana network is not quite stable, its validators are costly to operate and it has been down many times so maybe exchanges are losing confidence in the network's reliability.

polygamous_bat 4y ago

Tether will keep pretending to be fine until every last real dollar behind it has been drained. This is what is happening right now, with Binance (and previously FTX) propping up the crypto market with their purported bailouts and pretending nothing is out of place. Then one morning, all of a sudden, it will all come down with some really spectacular fireworks to watch.

Animats 4y ago
> Tether will keep pretending to be fine until every last real dollar behind it has been drained. That's how stablecoins work. There are two stable points: 1 and 0. When they break, they go all the way. As soon as the price breaks, there's a rush to exit. We've seen this happen a few times now. Watch the Tether market cap decline here.[1] A billion here, a billion there, and sooner or later you're talking about real money. [1] https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/