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Bet against Grayscale, MicroStrategy or any other publicly traded crypto company. Hell, even Coinbase is good enough. All will face very difficult times once Te

Bet against Grayscale, MicroStrategy or any other publicly traded crypto company. Hell, even Coinbase is good enough. All will face very difficult times once Tether collapses and takes most of the crypto "economy" with it. That's the only way I can think of to avoid crazy counter party risk.

iamsanteri 4y ago
Now this right here is not that bad of an idea. I thought coinbase is the only major publicly traded cryptocurrency company. What kind of an impact are we expecting on, say, Coinbase?
- Chabsff 4y ago
  A tether collapse would instantly reduce the USD market cap of crypto by 80 billion, and that's without any investor behavior added on top. On top of that, Coinbase needs a stable coin to operate at any non-trivial scale. I'd say the impact would be severe. That is unless crypto investors just pretend nothing happened, and some other bullshit stable coin immediately takes care of the liquidity issue, which I'd call likely.
drexlspivey 4y ago
Yes short a company that just today their stock went up 24% as a substitute for shorting tether that can never go up above $1 that should lower your risk.
- bluecalm 4y ago
  Don't short it. Buy long term put options and roll it. It's a better way to bet on a collapse. As to it going up today, it's still a 20b company with huge operational costs and no profits operating in funny money world full of scams, regulatory risk and having very little growth potential (after 13 years of crypto there is still no use case other than going around or breaking the law and it already reached its Super Bowl ads state so it's not like any more adoption is likely). Yes, you already missed the biggest gain as it's already worth about 25% of what naive public paid but there is still one way to go.
  - scaredginger 4y ago
    You pay through the nose for vol when buying puts on anything that looks like it should blow up
tsimionescu 4y ago
Shorting Coinbase won't force anyone to exchange USDT for USD, so it doesn't help control the time-line. Also, if Tether collapses, these companies could end up in such a bad place that they get delisted, so I still may not be able to make money off my short position.

iamsanteri 4y ago

Now this right here is not that bad of an idea. I thought coinbase is the only major publicly traded cryptocurrency company. What kind of an impact are we expecting on, say, Coinbase?

Chabsff 4y ago
A tether collapse would instantly reduce the USD market cap of crypto by 80 billion, and that's without any investor behavior added on top. On top of that, Coinbase needs a stable coin to operate at any non-trivial scale. I'd say the impact would be severe. That is unless crypto investors just pretend nothing happened, and some other bullshit stable coin immediately takes care of the liquidity issue, which I'd call likely.

drexlspivey 4y ago

Yes short a company that just today their stock went up 24% as a substitute for shorting tether that can never go up above $1 that should lower your risk.

bluecalm 4y ago
Don't short it. Buy long term put options and roll it. It's a better way to bet on a collapse. As to it going up today, it's still a 20b company with huge operational costs and no profits operating in funny money world full of scams, regulatory risk and having very little growth potential (after 13 years of crypto there is still no use case other than going around or breaking the law and it already reached its Super Bowl ads state so it's not like any more adoption is likely). Yes, you already missed the biggest gain as it's already worth about 25% of what naive public paid but there is still one way to go.
- scaredginger 4y ago
  You pay through the nose for vol when buying puts on anything that looks like it should blow up

tsimionescu 4y ago

Shorting Coinbase won't force anyone to exchange USDT for USD, so it doesn't help control the time-line. Also, if Tether collapses, these companies could end up in such a bad place that they get delisted, so I still may not be able to make money off my short position.