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Tether USDT is trading at $1.01
- joegibbs 4y agoIs this because everyone is buying it to get out USDC?
- simple-thoughts 4y agoCorrect, also USDT management does not buy long dated treasury bonds or deposit in banks that do so. That on top of their deep relationships with every major centralized exchange means it’s very difficult to impossible for them to experience a run like USDC has.
- sottol 4y ago> Correct, also USDT management does not buy long dated treasury bonds or deposit in banks that do so. Wut? How would we know, they don't really share specifics. Last I know they have a lot of money in Chinese corporate bonds that will fare worse when growth slows a tad more but maybe that's outdated.
- rippercushions 4y agoIn November 2022, Tether claimed that they hold US$40B in US Treasury bills "with an average maturity of less than 45 days". https://assets.ctfassets.net/vyse88cgwfbl/1Xfu4398CIoMiuKjPhvnHM/6d1608c90bb775d2d432b7b24264da28/ESO.02_Std_ISAE_3000R_Opinion_30-9-2022_RC134792022BD0548.pdf https://assets.ctfassets.net/vyse88cgwfbl/1Xfu4398CIoMiuKjPh... (Whether you should believe this claim is, of course, another story entirely.)
- beefield 4y agoMy understanding is that US Treasury issues a bit more than 1000 billion USD worth T-bills each month. If this is true, Tether must be one of the largest T-bill purcahser (multiple percentages of total issuance every month). Count me sceptic. Somehow I would assume this would be big news in finacial world. Edit: how do they claim bying them? I thought they had no us banking access?
- mister_tee 4y agoTether claims they have completely exited their position in commercial paper and are currently over 70% in US T-Bills. https://tether.to/en/transparency/#reports https://tether.to/en/transparency/#reports Disclaimer that I'm a bit of a Tether skeptic, but if I'm wrong and they either were in, or have been able to get to, a fully-collateralized position of mostly treasuries and are earning 5% interest while paying 0% on USDT, good for them and good for regular people who won't be left holding bags. I'll always consider Tether in the context of their July 2021 CNBC interview with Deirdre Bosa. Timestamps are relative to the copy at https://www.youtube.com/watch?v=ZBEqyiO35cQ https://www.youtube.com/watch?v=ZBEqyiO35cQ I don't think they've said who the commercial paper counterparties were and claim it was an important trade secret. Traders in the US commercial paper market say they had never heard of the Tether folks which was odd given their attestations would have given them a top 10 global holding (17:20). Explanation, they use intermediaries. Will they give names or details on the intermediaries? Can't, trade secret. Did they hold Chinese commercial paper? Dodged the question twice (6:30 and re-ask 7:35). Where are the CEO and CFO of this company that holds $60B of assets? Why don't they talk to media? (24:40) But hopefully we'll get assurance regarding the reserves soon. They were excited to promise a formal audit in "months not years" during that interview (27:42)... looking forward to this spring so the audit can be released before we hit two years. (edit: trying to shorten)
- grey-area 4y agoThey’ve exited the position in ‘commercial paper’ that couldn’t possibly have been true? What proof verified by third parties is there that any of their assertions are true? There never has been one and there never will be. Tether are an obvious fraud run by fraudsters, caught several times committing fraud and already banned in many jurisdictions. They deserve zero trust and when this ecosystem collapses they will go to 0.
- simple-thoughts 4y agoYes USDT has management flaws but these are caused by limitations placed on their access to banking services - they have a long history of making sure they can maintain peg in spite of constant attacks from regulatory authorities, short sellers, and negative media publicity. No, I don’t recommend using USDT. But with the regulated coins being operated much more poorly than USDT, it may be the best option in certain situations.
- brutusurp 4y ago[flagged]
- shapefrog 4y ago> USDT management does not buy long dated treasury bonds or deposit in banks that do so. They don't buy long dated treasury bonds or deposit in banks because they don't have any reserves backing their "100% reserve backed" token.
- collectedparts 4y agoIt's also a general expression of lack of confidence in the US banking system. Exchanges that offer true "USD" trading pairs ultimately have to store that cash [at a bank] somewhere. But at which bank? Before this week, most people probably wouldn't have paid attention. Some like Coinbase offer passthrough FDIC insurance [1], but again, if you have more than $250k you're potentially s-o-l just like an SVB depositor. So weirdly, 1 USDT ("definitely sketchy but somehow has never broken peg") all of a sudden may seem less risky than 1 "USD" at [which bank again?]. [1] https://www.coinbase.com/legal/insurance https://www.coinbase.com/legal/insurance
- threeseed 4y ago> But at which bank? One that has adequate risk management controls, attempts to comply with Basel 3 etc.
- deepsun 4y ago> somehow has never broken peg But all past stablecoins never broken the peg before they did.
- Eisenstein 4y agoWhich bank does USDT hold their pegged dollars in, again?
- deleted 4y ago[deleted]
- Felminor 4y agoAlone the fact that every stable coin created itself out of thin air when bought, makes this tremendously stupid.
- KaiserPro 4y ago> It's also a general expression of lack of confidence in the US banking system. that's not it. there are far better gauges of dissatisfaction in US banking, share price in banks is a far better gauge. if you want a metric for USD then swiss franc is better. USDC and other "stable coins" are risky, noisy and generally bad medium to long term investments. Unlike domestic currency they have such small trading volumes that they are easy to manipulate. Thats great if you're the one doing the manipulation. At best they perform better than cash, but without any of the protection, at worst they go bust. Emerging markets have less fraud than generic crypto backed devices.
- jaimehrubiks 4y agoAmazing. Let's expectante before it trades 0.9
- mister_tee 4y agoI enjoyed this meme on Twitter (saw a link to it, not familiar with any associated authors/commenters/threads): https://twitter.com/dgntec/status/1634621865485271041 https://twitter.com/dgntec/status/1634621865485271041 Accessible description / save-you-a-click: Left image: USDC: kitchen cabinet with a glass door; you can see on the inside a stack of dishes has mostly toppled, held up only so long as the door is closed Right image: USDT: photo of kitchen cabinets with completely opaque wooden doors (edit: spelling)
- wmf 4y agoThat meme is a great distillation of the cognitive bias at work here. USDC operates transparently so when there's a minor problem they admit it immediately and publicly, giving people something to overreact to. USDT is totally opaque and has outright lied in the past, so they keep saying everything is fine and people have no choice but to either trust them completely or don't touch crypto.
- drawkbox 4y agoSame thing happens when autocracies with closed systems and closed markets who pump propaganda about Western liberalized democratic republics with open markets and open systems. The systems that highlights and addresses problems with more transparency is the one that will be more robust and not blow up, adjustments can be made and it is a pressure release valve.
- m00dy 4y agoI understand but as far as I know, Tether has never refused a single customer for redemption.
- lokedhs 4y agoHave they ever accepted any redemption?
- londons_explore 4y ago
- monero-xmr 4y agoVery high confidence that USDC goes back to parity on Monday. Tether is benefiting from opaqueness.
- relyks 4y agoWhat is your reasoning behind this?
- monero-xmr 4y agoThe hole is worst-case around $500 million. SVB will be liquidated and Circle will see the majority of their money back. They make 5% in interest on $40 billion in assets so they can cover this hole in a quarter. They also have significant backers and the ability to raise money. Short term FUD. I have been buying all the way down to 88c and am already in the money so I’m financially incentivized to convince readers here. But this is just unwarranted panic.
- relyks 4y agoThanks for the response. I had similar reasoning. I bought at 90 cents. I figured the worst case scenario would be that the 8% assets missing from SVB would stay gone, which would make USDC valued at 92 cents. I also figured they would make interest on their t-bill assets, so this would definitely be a good long position
- m00dy 4y agoI got around 8% profit in 8 hours. That's enough for me.
- icelancer 4y agoGenuinely displeased at myself for looking at USDC @ 88-90c with lots of liquidity to 91c last night and simply going to bed because I was too tired. Some people made an insane amount of money capitalizing on stupidity and irrational behavior. I'm not one of them. EDIT: I think it's most likely that it repegs to $1.00 within a week, but at 96c (current price) there's not enough risk-adjusted return for me.
- deleted 4y ago[deleted]
- Izkata 4y agoIsn't this normal? I thought Tether regularly fluctuates between like 0.98 and 1.02 until it can adjust itself back. Edit: Ah, I see the graph on the bottom now, and have to extend it a bit... it does fluctuate, but it's more like 0.9997 to 1.0001 normally.
- irusensei 4y agoThread almost looks like a joke on “tether is trading at 0.98!!!” doom threads.
- satoshiiii 4y agoAs a long time cryptocurrency enthusiast, my recommendation for those who are interested in investing in cryptocurrency is to wait for USDT to collapse. Investing before it implodes will just bring you unnecessary stress, far greater than FOMO.
- medo-bear 4y agothanks satoshi iii! however ,especially long term, i fear for any investor who will take random advice from the internet like this
- nailer 4y agoThey’re right though. Search “coffeezilla USDT” for some tether basics.
- olalonde 4y agoI don't know whether Tether is a scam or not but something missing from those analysis is that a lot of Tether's shady behavior (e.g. commingling of funds, buying dubious commercial paper, etc.) can also be explained by their difficulty in obtaining and maintaining bank accounts.
- deleted 4y ago[deleted]
- wmf 4y agoOnce USDT collapses, crypto might be "down only" as they say. It could be like buying into Beanie Babies after they tanked. There's no guarantee there will be a next bubble.
- erikpukinskis 4y agoFor comparison 2023 dollars are trading at $0.85 2019 assets. So the USDC dip is certainly not the worst thing to happen to currency holders this decade.
- guipsp 4y agoFor comparison 2023 usdc are trading at 0.80$ 2019 assets
- xwolfi 4y agoI d rather have 2023 dollars then !
- capableweb 4y agoWas. Seems to be at 0.95 USD in most places at the moment.
- guipsp 4y agoRe-read my comment.
- pearjuice 4y agoWho would have thought people would be having more fate in synthetic dollars of which the backing value is a total mystery or outright fraud than synthetic dollars backed by actual dollars stored in regulated American banks. This Monday is going to be interesting.
- yieldcrv 4y agoTether is off its peg Tether permabears: omg finally No, the other direction
- ak_111 4y agoIronically, I think the greatest black swan in crypto over the last couple of years is Tether not collapsing. I can't remember a financial entity that has been exposed to such fraudulent behaviour (including very detailed exposes by mainstream media: bloomberg and FT) and yet managed to seemingly thrive and grow in importance in crypto land. I am very curios to how it managed to go on for so long and remain so dominant, given as someone noted on twitter it is "quilted out of red flags". If I wasn't such a hater I would definitely be making an argument to how it is the true antifragile coin, not bitcoin.
- capableweb 4y agoTether is like BP, catastrophe after catastrophe but still the machine keeps on chugging. People making money can make these things go on forever it seems.