For the first time, Tether holders are actually redeeming Tether for actual $$$. Tether has fallen 9% in market cap over the last 4 days. $6.5 billion dollars have been pulled out in a controlled way, in fractions every 12-24 hours. The question is when Tether runs out of actual $$$. If it is after like ~$20 billion withdrawn, we are looking at losses of ~$50 billion. And it could take Bitcoin with it.
[edit] $8 billion down now.
I made about 10K USD after fees picking up Monero for <120,USD/pc earlier this week and sold earlier around 163,USD, the only moderately useful one because you can buy drugs with it.
I'm going to laugh so fucking hard if this recession is inaugurated by the collapse of a bunch of crypto coins.
:biden-troll: heh heh heh Tether folks don't have the fancier money printer :brrrrrrrrrrrr:
thanks for this post, this shit fascinates my inner sicko even though i dont really understand it
please keep us updated on this!
For anyone curious: https://coinmarketcap.com/currencies/tether/
Select market cap on the chart, 1M. It looks like a fucking cliff lmfao
It could be that they're selling their reserves (Other crypto, random IOUs) to buy tether with to keep the peg and now adjusting their "market cap" to match the lost collateral.
If it is after like ~$20 billion withdrawn, we are looking at losses of ~$50 billion.
Could you explain this please? I don't understand the link between market cap going down and losses.
Imagine Tether as a more shitty bank with zero government guarantees. People gave them around $77 billion in cash, in return they got 77 billion Tethers. It is a bit more complicated than that (Tether is probably also printing Tethers out of thin air), but that is the general idea. People at Tether probably stole a lot of the cash and also "invested" it in risky stuff. People are now redeeming Tethers for cash. If Tether runs out of money after $20 billion redeemed, the rest of Tether holders are left with $0.
Ah so you're talking about the scenario of them running out of reserves. Okay, got it. Where are you getting the $20b number from though?
I just gave it as an example. According to Tether, they hold 3% of total Tether value in direct cash, so around $2.5 billion, so they will probably run out of reserves even sooner. My guess is that Tether is right now burning some of its own Tether reserves in order to maintain the peg to $. It is all so very fake.
People hold Tether to sell? Obviously this whole system is very stupid, the single-miner "coins" that central banks could issue to create digital cash that replaces traditional payment processors and other leeches on the financial system have utility. But these stablecoins are so stupid, they could work for their intended purpose of moving "value" between exchanges or whatever without using traditional banking/payment systems but without being prone to wild fluctuation in price. As anything someone holds for more than 10-20mins it takes to move money from one place to another they're very stupid.
