You are a very smart guy, you must understand how insane 40% per anum is. Do you? Where does it come from? who pays it and why? Look at Jim Simons and his brass. They made 40% per year and revered like gods. But like you said, what do I know. All I have to do get USDT, move it to Kucoin, and now I am racking in same $ as Renaisance tech and beating every hedge fund manager out there, without doing a single thing.
Sorry, don't understand the reference... is it a compliment?? LOL... Ok, so if we go with your thesis, does this mean the risk of default is very low? I see that the interest fluctuates with the market, and its high when the market is rising. But even at 10%, that is an amazing return. If USDT doesn't totally blow up, which is what you're saying, and Kucoin doesn't run away with your funds, is this almost a no brainer? Kucoin was already hacked once, but people give them credit for making all the customers whole, so maybe the worst is behind them.
Are you sure if shit hits the fan, I will be able to collect? Probably not. With puts on miners, I will be able to collect without the doubt. All these exchanges look cool and great while things are normal. Should we have some real disturbance it will not be easy to withdraw the funds, you can be sure of that.
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?
Read my posts, I said apart from shorting Miners and perhaps futures ETF, I do not see a "safe" way to short crypto and collect. Every post I say it. The main idea is not only be on the right side but also get paid. Tell me, how will you collect if Kucoin shuts down???? On the other hand, I know I will collect on my puts with IB with near certainty. If Tether gets exposed and removed, the whole crypto will tank to levels, no one here can even imagine today, along with every miner. Tether is what got crypto to current market cap. People talk about BTC at 500k, and not even considering it can go back to 5K and below. Right now, however long is a game in town of course.
Thank you for the compliment, but it's a simple answer, the borrowers are paying the high APY, or I should call traders you can go to aave.com and see the rates, that's the biggest smart contract lending/borrowing platform You think 40% APY is high, and the borrower is probably paying over 50%, but it's not a big deal when you're only borrowing for a couple of weeks There's very little risk as these loans are over-collateralized, meaning in order to be able to borrow $10,000, you needed to provide over $10,000 worth of cryptos (btc, eth, etc) When we had the crash in May/June, the cryptos ecosystem lost over $1T of value, what happened to all these loans? Some traders got rekt, got liquidated, lost their collateral, which could be Eth, btc, etc None of the CeFi platforms (Coinbase, Binance, Kraken, Kucoin, etc) shutdown, did they? Did you hear of problems with DeFi AAVE platform shutdown? Over $1 Trillion worth of value and nothing happened to the cryptos universe Market cap is all time high on cryptos again So maybe, it is not as risky as you think it is... Rates are high because there are a lot of degen traders who want to take advantage of the bull market fomo and don't want to sell their cryptos so they borrow against it to trade, and get rekt... What do you think would happen if the same thing happened in Wall Street and they lost about 50% of value in a few weeks time?
I went through every single post of yours in this thread and this is the only post you said anything about having issues with "collecting": https://www.elitetrader.com/et/posts/5476786/report None of your other posts did you say anything about "collecting". You have just been caught lying. What does Kucoin have anything to do with this? This link is to Kraken: https://trade.kraken.com/charts/KRAKEN:USDT-USD You can't even keep your facts straight. You have no idea if Tether implodes it will blow up crypto. Crypto land is a fantasy world and it might even go up if Tether goes to 0. Fact is, you are just guessing but trying to state your ridiculous guesses as facts.
GMI = gonna make it It's a reference to you waiting to buy crypto on a good price If you were stacking sats, you'd be orange-pilled but either way, the more cryptos users, the better Two different things. The USDT risk of crash is very low if not impossible as 95% of USDT coins are not redeemable due to where they are stored. A "bank-run" breaking-the-buck on the USDT is not possible The risk of default is very low on those loans with high APY as they are over collateralized loans. See my response to RedDuke
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.
40 percent is not high it is maddness . This whole thing makes no sense, post crypto as collateral, borrow and pay 40%????