Hindenburg Research Announces $1,000,000 Bounty For Details On Tether’s Backing

[johnarb]

If March of 2020 didn't do it though, I don't know what will.

Honestly though, I would love a crash so that some of these coins can come down to earth and I could load up for cheap. Its sad to see so much good stuff that I've learned about now having gone up 10x just since January. For some reason, this is when the market really took off.

Yup, USDT is not an over-leverage system like the USD in the banks

For example, if everyone in the US wanted to withdraw their USD, boom, instant collapse of the banking system and the FDIC does not have enough funds to cover. Why is this? For every $1 deposit in the bank, there's probably $10-$30 of USD money that was created

USDT is $1 to 1 USDT. Yea, no one on this thread believes it, but let's push that aside

On that alone, there is enough to cover if everyone decided to withdraw, but as I've mentioned to you on another thread, 95% of the USDT in circulation are not redeemable

March 2020 did not do it. A crash a few months ago where we lost over $1 Trillion of crypto values, did not do it either. Not even the 3 year bear market from 2017 to 2019 caused any significant USDT redemption. Not even the Bitfinex hack

And to add to that, It's not a 1 USD to 1 USDT in circulation at this point because there are probably millions or even billions of USDT's that are lost, similar to bitcoin private keys that were lost through hard drive crash, sudden deaths of owners, etc

You're a crypto guy now, Noah, I think you're GMI

https://twitter.com/x/status/1399947313989263360

 

[Sig]

Could very well be possible. There are lots of other stablecoins though, although none as big as Tether.

Have you also seen how much money you can make just by lending out USDT? Saw a bunch of videos on this. Right now you can get 40%, but it was as high as 50% just yesterday. Its apparently tied to the rising market and the rates are higher when its going up. This is at the Kucoin exchange. They even have insurance for what happens if there is a default. But of course in the case of a severe crash, I doubt the insurance will cover enough people.

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For other stablecoins, you can get 20% at other places, and these are apparently not as shady as USDT.

That lending rate is effectively reflecting the risk of default. That's the kind of rates you see on junk bonds of companies that are pretty close to default or even technically in default.

 

[RedDuke]

That lending rate is effectively reflecting the risk of default. That's the kind of rates you see on junk bonds of companies that are pretty close to default or even technically in default.

40 percent per year and people take it for granted without asking any questions. We are not even in Alice wonder land. The reality is it can only happen with fake money of course.

renaissance averaged this over the years and are the most successful quant shop ever. But who needs all their brain power and skill.

just land on Kucoin and bingo, you doing as good as renaissance.

 

[Sig]

The bitch of it is you can't really effectively short the thing because if it actually imploded your counterparty would probably implode too and you'd end up with little or nothing.

 

[RedDuke]

The bitch of it is you can't really effectively short the thing because if it actually imploded your counterparty would probably implode too and you'd end up with little or nothing.

and yet you can. We now have futures ETF, but that is not a best vehicle. The best one I could figure out, where you will 100 percent collect if you are right, are shorting miners. They have options . Someone just posted it the other day. They are traded on NASDAQ: HUT, RIOT, MSTR and MARA. I do not see any other venue if you want to collect for sure if you are right.

 

[Sig]

and yet you can. We now have futures ETF, but that is not a best vehicle. The best one I could figure out, where you will 100 percent collect if you are right, are shorting miners. They have options . Someone just posted it the other day. They are traded on NASDAQ: HUT, RIOT, MSTR and MARA. I do not see any other venue if you want to collect for sure if you are right.

True. It would be nice to short Tether itself since it could fail without causing a contagion that impacted the miners as much. But thanks for posting that list, definitely something to look into.

 

[RedDuke]

True. It would be nice to short Tether itself since it could fail without causing a contagion that impacted the miners as much. But thanks for posting that list, definitely something to look into.

yeah, no way to short that sucker. But if tether implodes, we should see crypto nuclear winter like no other. This would be a chance to load up once everyone would be hating it. May never happen as well of course. And tethers will happily print another set of billions.

 

[Sig]

yeah, no way to short that sucker. But if tether implodes, we should see crypto nuclear winter like no other. This would be a chance to load up once everyone would be hating it. May never happen as well of course. And tethers will happily print another set of billions.

Yeah, always have to remember another Buffet quotation that markets can remain irrational longer than you can remain solvent shorting them.

 

[johnarb]

40 percent per year and people take it for granted without asking any questions

There are billions of $ worth of stablecoins being lent and borrowed on cefi and defi platforms, have you considered that maybe they did more homework than you since they have money on the line and you do not?

 

[patek643]

The bitch of it is you can't really effectively short the thing because if it actually imploded your counterparty would probably implode too and you'd end up with little or nothing.

yeah, no way to short that sucker. But if tether implodes, we should see crypto nuclear winter like no other. This would be a chance to load up once everyone would be hating it. May never happen as well of course. And tethers will happily print another set of billions.

But you can: https://trade.kraken.com/charts/KRAKEN:USDT-USD

Or you can keep on talking nonsense.