Post for @RedDuke on USDT funny business

[NoahA]

I'm big on presenting both sides of an issue, so here is an excellent FUD piece that actually makes a lot of sense.

A follow-up post shows how USDT was transferred from an unknown wallet to Binance, 72 million, and then 72 million of USDC was burned. I guess this allows for the withdrawl of 72 million actual dollars.

https://twitter.com/x/status/1684953321163960321

The game is very interesting now because USDT should be generating quite a bit of income since interest rates are so high. The FED is also probably very interested in making sure that all those treasuries that Tether owns are kept there. Nobody wants forced selling. So in a way, Tether is now an ally of the FED.

But if cracks in Tether do appear, I think its highly bullish for Bitcoin. The one thing you can't print. I realize though that USDT is very important to the crypto eco-system right now, so this would likely be a big initial loss.

 

[The_Krakenite]

But if cracks in Tether do appear,

I believe this is wishful thinking. As has been pointed out many times already on this issue. It is not a question of if, but when the cracks show.

Seems to be a lot of SeaGate fans around still thinking they can GET OUT of the sub in time when the first crack signal appears.

We've seen how well that works. But, this time will be different, ehh?

 

[johnarb]

I'm big on presenting both sides of an issue, so here is an excellent FUD piece that actually makes a lot of sense.

View attachment 319826

A follow-up post shows how USDT was transferred from an unknown wallet to Binance, 72 million, and then 72 million of USDC was burned. I guess this allows for the withdrawl of 72 million actual dollars.

https://twitter.com/x/status/1684953321163960321

The game is very interesting now because USDT should be generating quite a bit of income since interest rates are so high. The FED is also probably very interested in making sure that all those treasuries that Tether owns are kept there. Nobody wants forced selling. So in a way, Tether is now an ally of the FED.

But if cracks in Tether do appear, I think its highly bullish for Bitcoin. The one thing you can't print. I realize though that USDT is very important to the crypto eco-system right now, so this would likely be a big initial loss.

In order to redeem USDC for USD, there are strict KYC-AML stuff. This is the same for any stablecoin cash redemption including USDT and GUSD. Not everyone can do this

Imagine if there was no such control, you literally had the biggest criminal thief in crypto Sam Scammerman-Fraud that could have cashed out FTT tokens to USD via stablecoin redemptions

There would have been no need to borrow and use FTT as collateral that caused margin call and the collapse of FTX-Alameda

 

[RedDuke]

Thanks for posting.

 

[TheDawn]

I'm big on presenting both sides of an issue, so here is an excellent FUD piece that actually makes a lot of sense.

View attachment 319826

A follow-up post shows how USDT was transferred from an unknown wallet to Binance, 72 million, and then 72 million of USDC was burned. I guess this allows for the withdrawl of 72 million actual dollars.

https://twitter.com/x/status/1684953321163960321

The game is very interesting now because USDT should be generating quite a bit of income since interest rates are so high. The FED is also probably very interested in making sure that all those treasuries that Tether owns are kept there. Nobody wants forced selling. So in a way, Tether is now an ally of the FED.

But if cracks in Tether do appear, I think its highly bullish for Bitcoin. The one thing you can't print. I realize though that USDT is very important to the crypto eco-system right now, so this would likely be a big initial loss.

I can never understand how you can categorize a "currency" that's pegged to a fiat like USD as a cryptocurrency. How's it a cryptocurrency if its final value is determined by the value of a fiat?

 

[NoahA]

I can never understand how you can categorize a "currency" that's pegged to a fiat like USD as a cryptocurrency. How's it a cryptocurrency if its final value is determined by the value of a fiat?

It is for this reason that most people refer to them as stablecoins, alluding to the fact that they should be stable in price and maintain their peg.

The crypto part simply means that the transactions are secured through cryptographic means, meaning math.

Even using currency in the word is problematic with reference to some coins, and you will also note that Baron calls this forum "Crypto Assets" in order to be more correct and more broad.

 

[TheDawn]

It is for this reason that most people refer to them as stablecoins, alluding to the fact that they should be stable in price and maintain their peg.

The crypto part simply means that the transactions are secured through cryptographic means, meaning math.

Even using currency in the word is problematic with reference to some coins, and you will also note that Baron calls this forum "Crypto Assets" in order to be more correct and more broad.

Well that's the problem. Cryptocurrency's goal and purpose is supposed to replace the current fiat currency as the universal medium of exchange given that it's virtual and can be mined by anybody worldwide. Its value is supposed to be determined by supply & demand but given the limited inventory in some cryptocurrencies and limited supply, its value is supposed to be inherently stable and has no need to be pegged to anything.

Right now, with the way how cryptocurrencies are, it certainly is just a commodity or an asset just like any other.

 

[RedDuke]

Well that's the problem. Cryptocurrency's goal and purpose is supposed to replace the current fiat currency as the universal medium of exchange given that it's virtual and can be mined by anybody worldwide. Its value is supposed to be determined by supply & demand but given the limited inventory in some cryptocurrencies and limited supply, its value is supposed to be inherently stable and has no need to be pegged to anything.

Right now, with the way how cryptocurrencies are, it certainly is just a commodity or an asset just like any other.

“commodity” which price is fully proped up by fake money created out of thin air.