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