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The fact that USDC is down before Tether is fascinating. One has proven reserves and has been open about its losses, thus is suffering for it. The other is on

The fact that USDC is down before Tether is fascinating. One has proven reserves and has been open about its losses, thus is suffering for it. The other is one of the biggest financial frauds in history and has no open information about its reserves, has suffered known losses in the past and failed to inform customers… keeps going.

wslh 4y ago
It is an irony that USDC is down while Tether is up. It is always good to know other opinions about this in this interesting thread. Another example, a stable coin based on BTC collateral, Money on Chain (MoC) [1] is working fine and worked fine in the past depeg issue with DAI. This is a great test for a collateral based stable coin. This is always a warning to news addicts that should realize crypto media is not trustworthy. It seems now that the CeFi and DeFi worlds were more interlaced than we thought before. This is a new challenge. If Circle and its VC backers don't take the right decisions (e.g. restore the peg even with hard moves) the trust will break for the traditional financial world as well. [1] https://moneyonchain.com/ https://moneyonchain.com/ (full disclosure: it is a customer from my company)
jjoonathan 4y ago
Tether had such enormous USD inflows that it all comes down to how they played the rising interest rate environment and maaaybe exposure to Chinese bonds, not whether or not they were fraudulent even as late as a few years ago. If they did a good job dancing to the music, even a poly-billion dollar hole in their balance sheet will rapidly heal, if it hasn't already. If they did a poor job dancing to the music (see: SVB), this sin would eclipse the comparatively small matter of shady founders pocketing a billion or three.
pavlov 4y ago
Lehman Brothers went down before Madoff. USDC goes down before Tether.
- wslh 4y ago
  In crypto and non-crypto there are a lot of Madoffs, so we should choose the order of events carefully.

wslh 4y ago

It is an irony that USDC is down while Tether is up. It is always good to know other opinions about this in this interesting thread. Another example, a stable coin based on BTC collateral, Money on Chain (MoC) [1] is working fine and worked fine in the past depeg issue with DAI. This is a great test for a collateral based stable coin. This is always a warning to news addicts that should realize crypto media is not trustworthy. It seems now that the CeFi and DeFi worlds were more interlaced than we thought before. This is a new challenge. If Circle and its VC backers don't take the right decisions (e.g. restore the peg even with hard moves) the trust will break for the traditional financial world as well. [1] https://moneyonchain.com/ https://moneyonchain.com/ (full disclosure: it is a customer from my company)

jjoonathan 4y ago

Tether had such enormous USD inflows that it all comes down to how they played the rising interest rate environment and maaaybe exposure to Chinese bonds, not whether or not they were fraudulent even as late as a few years ago. If they did a good job dancing to the music, even a poly-billion dollar hole in their balance sheet will rapidly heal, if it hasn't already. If they did a poor job dancing to the music (see: SVB), this sin would eclipse the comparatively small matter of shady founders pocketing a billion or three.

pavlov 4y ago

Lehman Brothers went down before Madoff. USDC goes down before Tether.

wslh 4y ago
In crypto and non-crypto there are a lot of Madoffs, so we should choose the order of events carefully.