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

[johnarb]

40 percent is not high it is maddness . This whole thing makes no sense, post crypto as collateral, borrow and pay 40%????

40% APY. Not 40%

If you borrow $100,000 and kept the loan for the whole year, you pay $40K in interest

If you borrow it for 2 weeks, you pay $1550 in interest for the 2 weeks and you get your collateral back, if you put 30 Ethereum, provided you did not get liquidated if Eth went down in value within the 2 weeks and you did not post more capital when you got the margin call

But during that 2 weeks, with your elite trader skills, you bought and shorted btc 100 times and earned $50K in profits

Oops, the 40% is to the lender (USDT depositor of $100K) but you get the idea you just adjust the numbers, higher interest rate for the borrower

The 40% APY is variable, every depositor of kucoin knows this as well as AAVE depositor. Based on supply and demand. Demand is very high, fomo bull market, traders want to trade

The problem with depositing at CeFi like Kucoin is now you're trusting that exchange won't shut down or give you some KYC/AML issues

So people go to AAVE, where it's all smart contract based, but lower APY

 

[patek643]

i must have touched some nerve . Take a chill pill, this is my post from 7:22pm on this thread:

“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…”

once again for me shorting something virtual, without good assurance I will get paid, makes 0 sense. If/when I decide to short crypto, I will buy puts on miners.

So you admit that is the only post:

https://www.elitetrader.com/et/posts/5476786

you mention anything about "collecting" and that you were wrong and you lied in this post when you said "every post I say it" about "collecting":

https://www.elitetrader.com/et/posts/5476881

 

[NoahA]

40 percent is not high it is maddness . This whole thing makes no sense, post crypto as collateral, borrow and pay 40%????

I kind of agree that is makes no sense with reference to what we are used to in the banking system. But I also understand that when the computers and smart contracts do the "paperwork", there can be no shadiness. It will hold people/traders accountable. Heaven forbid the politicians get put on a "smart contact"!!

If anything, the entire manipulated interest rate by the FED is shadiness. They don't let the market set it. With crypto, the market is setting the rate. Its like the holy grail. This is what we wanted all along.

By using crypto, we are voting with our wallets. We are telling the government that we don't like their system any more and that they can shove it up their ass.

 

[Sig]

You said there was "no way to short that sucker." I have proven you wrong. Don't dodge the topic by now claiming you aren't "able to collect".

Where's your proof that you can't collect?

What does the implosion of Tether have anything to do with Bitcoin miners?

He was responding to my post where I said "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". What part of that don't you get? You can technically short anything if you can find some one to take the other side of your trade, that doesn't mean they'll be able to pay out when they lose.

We were having an adult discussion about the best way to short tether without excessive counterparty risk. If you'd like to act like an adult as well then feel free to join in the discussion, but at this point not even you seem to know what you're trying to accomplish and you're actively destroying value rather than creating it.

 

[Pekelo]

By using crypto, we are voting with our wallets. We are telling the government that we don't like their system

I couldn't agree more. When I buy lottery tickets I am also voting with my money that I don't care about the US pension system. Shovel that 401K up in your ass you stupid government, I am playing Powerball!!!

 

[Sig]

I kind of agree that is makes no sense with reference to what we are used to in the banking system. But I also understand that when the computers and smart contracts do the "paperwork", there can be no shadiness. It will hold people/traders accountable. Heaven forbid the politicians get put on a "smart contact"!!

If anything, the entire manipulated interest rate by the FED is shadiness. They don't let the market set it. With crypto, the market is setting the rate. Its like the holy grail. This is what we wanted all along.

By using crypto, we are voting with our wallets. We are telling the government that we don't like their system any more and that they can shove it up their ass.

The market sets interest rates every day. There is actually this huge thing called the bond market, where companies sell bonds that they repay. Thousands of them, all bought and sold on a market where the market determines their interest rates. Most stable companies where the bond holder has a very high chance of getting their principal back plus the promised interest have a low interest rate. A few companies that are in distress require a higher interest rate by the market to reflect the risk they aren't going to be able to pay back that interest and principal. Only those that are on the brink of failure are priced at 40% level rates.

Or to put it another way, if your brave new world thinks that 40% interest represents a low risk situation, then you live in a new world where inflation is going to be around 38% Sounds like a pretty crappy new world to me, one that the fanboys can "shove up their ass" as you would say.

 

[newwurldmn]

The market sets interest rates every day. There is actually this huge thing called the bond market, where companies sell bonds that they repay. Thousands of them, all bought and sold on a market where the market determines their interest rates. Most stable companies where the bond holder has a very high chance of getting their principal back plus the promised interest have a low interest rate. A few companies that are in distress require a higher interest rate by the market to reflect the risk they aren't going to be able to pay back that interest and principal. Only those that are on the brink of failure are priced at 40% level rates.

Or to put it another way, if your brave new world thinks that 40% interest represents a low risk situation, then you live in a new world where inflation is going to be around 38% Sounds like a pretty crappy new world to me, one that the fanboys can "shove up their ass" as you would say.

A bond pricing a 40% yield in this environment isn't pricing a probability of bankruptcy. it's pricing the recovery value on the inevitable bankruptcy.

 

[RedDuke]

So you admit that is the only post:

https://www.elitetrader.com/et/posts/5476786

you mention anything about "collecting" and that you were wrong and you lied in this post when you said "every post I say it" about "collecting":

https://www.elitetrader.com/et/posts/5476881

You explicitly said that I never said collect, I clearly showed you were wrong. My main objective is not only be able to short but end up with money at my bank.

Chill pill does wonders, you know

 

[newwurldmn]

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

it was John Maynard Keynes who said that quote.

 

[NoahA]

The market sets interest rates every day. There is actually this huge thing called the bond market, where companies sell bonds that they repay. Thousands of them, all bought and sold on a market where the market determines their interest rates. Most stable companies where the bond holder has a very high chance of getting their principal back plus the promised interest have a low interest rate. A few companies that are in distress require a higher interest rate by the market to reflect the risk they aren't going to be able to pay back that interest and principal. Only those that are on the brink of failure are priced at 40% level rates.

Or to put it another way, if your brave new world thinks that 40% interest represents a low risk situation, then you live in a new world where inflation is going to be around 38% Sounds like a pretty crappy new world to me, one that the fanboys can "shove up their ass" as you would say.

I'm no bond expert, but doesn't the government set the overnight lending rate, and all rates are based on this?

When it tries to sell treasuries and there aren't enough buyers, no problem, the FED buys up whatever it needs to, right? So how is this fair pricing?

Doesn't the FED also openly buy corporate bonds as well? Its not too difficult to buy something for a small interest rate when you know the FED will buy it back from you. When its a risk free trade, you don't know the actual price.