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well technically, Paxos can profit because they can invest in 'Cash equivelents". Also at the stablecoin level, there is an expectation to profit through money
by TrapLord_Rhodo 4y ago
well technically, Paxos can profit because they can invest in 'Cash equivelents". Also at the stablecoin level, there is an expectation to profit through money lending, transaction fees, liquidity pools, reserve capital to short against an asset, and other lending practices. Even though the coin isn't going to 'Appreciate'.
- yokem55 4y agoBut all those profitable activities aren't being proposed or offered by the issuer, and require additional affirmative actions and effort by the holder, taking on additional risk and interactions with third party entities. Just because tools can be used for profitable ends doesn't make tools themselves security offerings.
- TrapLord_Rhodo 4y agowhat if you shorted the coin? or if you bought and sold on the minute differences? Even though it's 'Pegged", it never equals 1-1 for USD. For instance, jump capital and plenty of other corps made a killing on the depegging of terra.