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You know who already made tens of millions in profits and will continue to because of stories like this? Market makers that redeem billions of USDT for cash wit

You know who already made tens of millions in profits and will continue to because of stories like this? Market makers that redeem billions of USDT for cash with Tether/Bitfinex every time it goes under $0.99. Borrow USDT on leverage, cash out at $1 to US bank, mint USDC with Circle, swap to USDT, repay USDT loan and bank the difference, rinse and repeat until it's back to $1.

Aperocky 4y ago
It's not a risk free proposition, it's probably a losing proposition in the long term. Every time it dips under $0.99, there's a chance it goes straight to $0 and cannot be cashed out anywhere.
- charcircuit 4y ago
  >there's a chance it goes straight to $0 Since Tether is fully backed the chance is really small.
  - bagels 4y ago
    They merely claim it is fully backed.
    - charcircuit 4y ago
      No, they also have third party attestations that it is fully backed.
      - bagels 4y ago
        Apparently those attestations are relatively recent in their history, but also not very convincing: https://www.coindesk.com/markets/2021/03/30/tether-takes-step-toward-transparency-with-first-accounting-firm-report-card/ https://www.coindesk.com/markets/2021/03/30/tether-takes-ste... "as noted later in the article the composition of Tether’s assets is not spelled out in the attestation" Meaning they may be backed by loans or fraud coins or anything.
  - grey-area 4y ago
    Tether is not fully backed.
    - charcircuit 4y ago
      There is no proof of this. Despite many people complaining Tether continues to pay out billions dollars to people redeeming tethers.
      - bananapub 4y ago
        what does that have to do with anything? being able to pay out some portion of "deposits" is obviously not evidence of being "fully backed".
        charcircuit 4y ago
        It is evidence that Tether isn't going to instantly crumple like what some Tether haters believe. If you want evidence of being fully backed they have attestations on their transparency page that breaks down their assets.
- eli 4y ago
  This will absolutely happen some day
  - Aperocky 4y ago
    If the feds rate prediction are true, probably within the year.
    - bagacrap 4y ago
      why? tether can survive a 4.25% overnight rate and not 50%?
- mancerayder 4y ago
  I think that's likelihood is connected to the government resolve to rein in crypto shadiness, which given recent events seems like it's only starting to pick up.
nateberkopec 4y ago
> Market makers that redeem billions of USDT for cash with Tether/Bitfinex Have people actually seen the receipts for this? I'm skeptical that this actually occurs.
- Marazan 4y ago
  Hey, a highly reputable trader Sam Bankman Fried claims to habe done exactly that. His reputation is second to none.
arez 4y ago
nobody is redeeming tethers with bitfinex, they don't even have proper banking anywhere and their accounts are constantly shutdown by various entities.

Aperocky 4y ago

It's not a risk free proposition, it's probably a losing proposition in the long term. Every time it dips under $0.99, there's a chance it goes straight to $0 and cannot be cashed out anywhere.

charcircuit 4y ago
>there's a chance it goes straight to $0 Since Tether is fully backed the chance is really small.
- bagels 4y ago
  They merely claim it is fully backed.
  - charcircuit 4y ago
    No, they also have third party attestations that it is fully backed.
    - bagels 4y ago
      Apparently those attestations are relatively recent in their history, but also not very convincing: https://www.coindesk.com/markets/2021/03/30/tether-takes-step-toward-transparency-with-first-accounting-firm-report-card/ https://www.coindesk.com/markets/2021/03/30/tether-takes-ste... "as noted later in the article the composition of Tether’s assets is not spelled out in the attestation" Meaning they may be backed by loans or fraud coins or anything.
- grey-area 4y ago
  Tether is not fully backed.
  - charcircuit 4y ago
    There is no proof of this. Despite many people complaining Tether continues to pay out billions dollars to people redeeming tethers.
    - bananapub 4y ago
      what does that have to do with anything? being able to pay out some portion of "deposits" is obviously not evidence of being "fully backed".
      - charcircuit 4y ago
        It is evidence that Tether isn't going to instantly crumple like what some Tether haters believe. If you want evidence of being fully backed they have attestations on their transparency page that breaks down their assets.
eli 4y ago
This will absolutely happen some day
- Aperocky 4y ago
  If the feds rate prediction are true, probably within the year.
  - bagacrap 4y ago
    why? tether can survive a 4.25% overnight rate and not 50%?
mancerayder 4y ago
I think that's likelihood is connected to the government resolve to rein in crypto shadiness, which given recent events seems like it's only starting to pick up.

nateberkopec 4y ago

> Market makers that redeem billions of USDT for cash with Tether/Bitfinex Have people actually seen the receipts for this? I'm skeptical that this actually occurs.

Marazan 4y ago
Hey, a highly reputable trader Sam Bankman Fried claims to habe done exactly that. His reputation is second to none.

arez 4y ago

nobody is redeeming tethers with bitfinex, they don't even have proper banking anywhere and their accounts are constantly shutdown by various entities.