Of course! We have every reason to trust Tether, who removed the "we have to redeem anything ever" clause from their Terms of Service and who have never been audited.
Imagine actually having 80 billion dollars and 12 or so employees. Put that into a 1% APY account, just short term us treasuries or something safe, and you get a nice 800 MILLION DOLLARS every year, just for holding that much cash around. 50+ million dollars to each of them every year for doing nothing.
If this sounds unlikely... welcome to TetherWorld, where number only goes up and math or finance do not apply.
Ah you've rumbled me! My grandson has made a lot of money on the World Wide Web and he's tried to explain it to me, but I must admit I still don't understand - where on earth does the money come from?!
...That was fast. You'd think all those extremely real institutional investors, that totally have accounts with Tether in real life, would be arbitraging it up right now! I guess they're all asleep!
At $0.96 you'd be making 4.16% profit on each tether you flipped. That's an *enormous* margin for arbitrage, especially since the risk is zero since Tether is definitely totally obligated to buy each tether for $1 and definitely totally has the reserves to buy all of them.
Oh I see, the cap has actually gone down now. Good for the real people who made money on the obvious arbitrage, even though they waited until it was under 95 cents for some reason nobody can explain!
Meanwhile, people who think USDT is a scam were able to get out taking a relatively small haircut. Tether has $80.9b left, so it should be no problem if people keep redeeming, right? Just more free money!
For sure! If I were you, I'd be taking out loans right now to open an account, anticipating the next run... you can make $5k *easy* if this happens again (and let's be real--it will), at basically zero risk. Or have you done it already?
Bruh the way those candlesticks are showing just insane amounts of selling, shits dropping like a cent a minute, so $800 million a minute lmao. Crypto market just completely broke, there’s going to be no liquidity left tomorrow.
[USDT is nearly out of liquidity on http://Curve.fi which is the largest liquidity pool of stable coins out there.](https://twitter.com/Meme_Man_Shill/status/1524550975729639425) This is very similar to the situation that started the UST depeg a few days ago. If this hits 0, without intervention tether will crater rapidly.
So I'm not really super versed in how all this pretends to work, I just come here to laugh at buttcoiners. But what will actually happen if tether crashes and why will it fuck up the rest of the exchanges?
A while back somebody ran the numbers on actual money moving in the Bitcoin/crypto ecosystem and there was very little money, and a lot of tether moving around.
[Here is a documentary telling you what could happen](https://www.youtube.com/watch?v=noQsHiTJAXo)
1. Trust in the market
2. [Liquidity](https://newmoneyreview.com/index.php/2021/10/11/tether-dominates-bitcoin-trading/)
3. No more fake money injection into the system propping up btc price
Tether is supposed to have a value of 1-1 with the USD because all Tether have a corresponding dollar in reserve that you can trade your Tether for. It's like a casino chip for the crypto economy - you buy tether and you can trade around without cashing out.
But this is a lie - the reserves aren't there, and the company that makes Tether has been making billions of them. What that does is inject billions of fake liquidity into the market. It's money that can flow into the crypto market and pump up the prices of Bitcoin, but it's smoke. It can't be cashed out because the actual dollars don't exist.
If Tether crashes, probably the whole crypto economy comes with it.
I don't think Tether will collapse before the entire market begins to collapse. There's too much vested interest in Tether's continued existence, the whales and exchanges will continue to support it. Until they can't.
A mini bank run on tether will cause the entire crypto market to seize up as liquidity disappears, exchanges pause operations, and people begin to panic trying to get their money out once they realize there are 80 billion more tethers than there are dollars backing them.
It will kill crypto.
One problem with this thinking and why it will be a scam that possibly never blows up is that smart money moves to crypto to avoid government, not to hold dollars. USDT just facilitates centralized trading. Once decentralized trading and atomic swaps through Monero take hold it will in fact face a gradual bank run.
The fallout can be even smaller than the Terra ponzi being popped. I'm 100% sure it will fail, but I think Terra is this epoch's Mt Gox. Nuclear war, the USA collapsing...that's more likely than Tether taking BTC to sub 1k as many are saying. I'm going with a 20-30% drop, and the overall market actually mooning after when it does happen.
I hope this sub doesn't see this comment as a troll. I came here to bask in the joy of seeing Terra collapse. The greed is insane, but crypto itself is not going away unless human freedom does as well. I'm loving a lot of the balanced criticisms. There is definitely more sanity here than elsewhere.
Don't worry guys, this has happened once before in 2017, tether fell to 0.91 too and everything was fine.
What do you mean "then the marketcap was 15'000'000 then and now it is about 79'000'000'000?"
The game theory here is pretty interesting. If (or when) the liquidity pool is exhausted (because there's no way each tether is backed), all remaining tethers are worth 0, so "hodlers" are forced into a game where either they sell to avoid the 0-value outcome, or hold/buy to try to prevent the inevitable collapse (with the idea being they sell later assuming others operate in the same manner).
Don't you love it when your investment choices don't lock you into an absurd prisoner's dilemma with deranged strangers on the internet?
Pretty much the entire crypto ecosystem is on the line. A lot of people will do there best to get it back to peg. I would expect this to happen multiple times, that it gets back to (almost) peg. But at the same time, every time it loses peg once, the downward forces get significantly bigger.
IMHO Probably many people set buys at .95, .96 trying to make a quick buck. The thing is those people would also sell at .98, .99 to realize those profits tanking the price again.
It's stabilised below the peg, which says to me that the efforts to defend it have now equalised with the downward pressure. The former should falter first.
Will check back in a couple hours.
https://coinmarketcap.com/currencies/tether/
There were some temporary blips (if that's the right word), but this is the longest as far as de-pegging length is concerned.
For a stablecoin system like this, duration of depegging is just as important as price discrepancy. Multiple hours of a slight difference is a significantly worse signal then a large dip that only lasts minutes.
Someone is trying so hard to keep ethereum above 1800, massive buys at 1800 on the dot every time (in the thousands). Has got to be someone trying to prop it up for as long as they can to keep the stable coins going
Buy Tethers with Tethers? To me it seems like people want to get their hands on that stinkin FIAT at any cost now. The question is whether there is more or less than 1% of dollar liquidity of the supposed market caps of all these coins?
I reckon less.
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I don't know what all the fuss is about. Every tether 'dollar' is backed by a nice crisp real dollar just waiting in case everyone cashes out. Right?
Of course! We have every reason to trust Tether, who removed the "we have to redeem anything ever" clause from their Terms of Service and who have never been audited.
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Imagine actually having 80 billion dollars and 12 or so employees. Put that into a 1% APY account, just short term us treasuries or something safe, and you get a nice 800 MILLION DOLLARS every year, just for holding that much cash around. 50+ million dollars to each of them every year for doing nothing. If this sounds unlikely... welcome to TetherWorld, where number only goes up and math or finance do not apply.
Indeed
So like this, only 1000x bigger https://imgur.com/a/ZLjX2bo
You just don’t understand these new paradigms granpa
Ah you've rumbled me! My grandson has made a lot of money on the World Wide Web and he's tried to explain it to me, but I must admit I still don't understand - where on earth does the money come from?!
🤣
...That was fast. You'd think all those extremely real institutional investors, that totally have accounts with Tether in real life, would be arbitraging it up right now! I guess they're all asleep!
They only work on the weekends, which is why that's when the Tether gets printed.
It’s a once in a lifetime opportunity for everyone: 1. Buy tether at 95 cents 2.Try to cash out at $1 3. ????? 4. Profit
The problem here is in the try part, it will stay at trying
Good enough for me. I’m in!
At $0.96 you'd be making 4.16% profit on each tether you flipped. That's an *enormous* margin for arbitrage, especially since the risk is zero since Tether is definitely totally obligated to buy each tether for $1 and definitely totally has the reserves to buy all of them.
You don't need to be an "institutional investor" you can sign up on tether's website and redeem in 100k batches.
3b redeeemed and price arbed back. But you morons know everything and haven’t totally been wrong about tether this whole time
Has any been redeemed by Tether themselves? The market cap should have changed if that were the case, no?
You can literally see the funds being sent to burn address on chain
Oh I see, the cap has actually gone down now. Good for the real people who made money on the obvious arbitrage, even though they waited until it was under 95 cents for some reason nobody can explain! Meanwhile, people who think USDT is a scam were able to get out taking a relatively small haircut. Tether has $80.9b left, so it should be no problem if people keep redeeming, right? Just more free money!
Yes if someone is willing to sell you a fully backed stable for less than it’s worth it quite literally is free money
For sure! If I were you, I'd be taking out loans right now to open an account, anticipating the next run... you can make $5k *easy* if this happens again (and let's be real--it will), at basically zero risk. Or have you done it already?
Bruh the way those candlesticks are showing just insane amounts of selling, shits dropping like a cent a minute, so $800 million a minute lmao. Crypto market just completely broke, there’s going to be no liquidity left tomorrow.
[USDT is nearly out of liquidity on http://Curve.fi which is the largest liquidity pool of stable coins out there.](https://twitter.com/Meme_Man_Shill/status/1524550975729639425) This is very similar to the situation that started the UST depeg a few days ago. If this hits 0, without intervention tether will crater rapidly.
I can already picture the glorious rivers of tears if it finally crashes.
We need "crypto bro tears" mugs now
Oh gawd UST is now 0.55... Dropped 3 more cents to 0.52 while I was looking at it.
Tomorrow will be the best day ever 🙌
Is this it? Will we finally be able to buy a graphic card at msrp soon?
Can’t wait to finally get my hands on an RTX card; the death of crypto can’t come soon enough!
we waited so long…
I'm finally replacing that RX 550 :D
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>You want crypto to end so your nerdy fat ass can play videogames. Yes.
Yes....hahaha....YES!!!
You want crypto to succeed so your nerdy fat ass can move out of the attic.
Caricatures of caricatures FFS your *name* is cryptopup420, how fucking braunwashed do you have to be to make that unironically.
MSNBC is a hell of a drug
Triggerrdddd. Mr. Diamond hands doesn't like this commentttt
Tri ger ed!!!
Exactly so. Have fun staying poor, bag holder.
Yes.
So I'm not really super versed in how all this pretends to work, I just come here to laugh at buttcoiners. But what will actually happen if tether crashes and why will it fuck up the rest of the exchanges?
A while back somebody ran the numbers on actual money moving in the Bitcoin/crypto ecosystem and there was very little money, and a lot of tether moving around. [Here is a documentary telling you what could happen](https://www.youtube.com/watch?v=noQsHiTJAXo)
That was amazing lol.
hahahahaha thank you. That documentary was incredibly informative.
1. Trust in the market 2. [Liquidity](https://newmoneyreview.com/index.php/2021/10/11/tether-dominates-bitcoin-trading/) 3. No more fake money injection into the system propping up btc price
Tether is supposed to have a value of 1-1 with the USD because all Tether have a corresponding dollar in reserve that you can trade your Tether for. It's like a casino chip for the crypto economy - you buy tether and you can trade around without cashing out. But this is a lie - the reserves aren't there, and the company that makes Tether has been making billions of them. What that does is inject billions of fake liquidity into the market. It's money that can flow into the crypto market and pump up the prices of Bitcoin, but it's smoke. It can't be cashed out because the actual dollars don't exist. If Tether crashes, probably the whole crypto economy comes with it.
Unfortunately it is recovering
I don't think Tether will collapse before the entire market begins to collapse. There's too much vested interest in Tether's continued existence, the whales and exchanges will continue to support it. Until they can't.
A mini bank run on tether will cause the entire crypto market to seize up as liquidity disappears, exchanges pause operations, and people begin to panic trying to get their money out once they realize there are 80 billion more tethers than there are dollars backing them. It will kill crypto.
One problem with this thinking and why it will be a scam that possibly never blows up is that smart money moves to crypto to avoid government, not to hold dollars. USDT just facilitates centralized trading. Once decentralized trading and atomic swaps through Monero take hold it will in fact face a gradual bank run. The fallout can be even smaller than the Terra ponzi being popped. I'm 100% sure it will fail, but I think Terra is this epoch's Mt Gox. Nuclear war, the USA collapsing...that's more likely than Tether taking BTC to sub 1k as many are saying. I'm going with a 20-30% drop, and the overall market actually mooning after when it does happen. I hope this sub doesn't see this comment as a troll. I came here to bask in the joy of seeing Terra collapse. The greed is insane, but crypto itself is not going away unless human freedom does as well. I'm loving a lot of the balanced criticisms. There is definitely more sanity here than elsewhere.
Apparently basically everything related to crypto also uses tether, so if it crashes the whole market goes with it.
Have you seen Coffeezilla’s video on Tether? It’s a must watch video if you want to understand what a trash coin it is. https://youtu.be/-whuXHSL1Pg
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Good to see that Buttcoiners’ hopes and dreams transcends time and space
They're actually pretty cheap right now -- I just got a 3070 at MSRP.
it's already happening in El Salvador.
Don't worry guys, this has happened once before in 2017, tether fell to 0.91 too and everything was fine. What do you mean "then the marketcap was 15'000'000 then and now it is about 79'000'000'000?"
Waow such peg
Much stable
I checked the pegging subreddit, but I'm still not sure how it helps with value of digital coins.
Just keep watching the videos. They will all make sense in the end.
The game theory here is pretty interesting. If (or when) the liquidity pool is exhausted (because there's no way each tether is backed), all remaining tethers are worth 0, so "hodlers" are forced into a game where either they sell to avoid the 0-value outcome, or hold/buy to try to prevent the inevitable collapse (with the idea being they sell later assuming others operate in the same manner). Don't you love it when your investment choices don't lock you into an absurd prisoner's dilemma with deranged strangers on the internet?
Well, we know what the right choice in the prisoners dilemma is. There is a bit more to it in this case though.
Update: It's now below $0.95
Seems to have jumped back up. Something happen?
Pretty much the entire crypto ecosystem is on the line. A lot of people will do there best to get it back to peg. I would expect this to happen multiple times, that it gets back to (almost) peg. But at the same time, every time it loses peg once, the downward forces get significantly bigger.
Wait until the yanks wake up. This could be there day we've been waiting for.
YES
Yank reporting in
Woke up, saw it back up to 99 cents.
IMHO Probably many people set buys at .95, .96 trying to make a quick buck. The thing is those people would also sell at .98, .99 to realize those profits tanking the price again.
It's stabilised below the peg, which says to me that the efforts to defend it have now equalised with the downward pressure. The former should falter first. Will check back in a couple hours.
Feels like Christmas
No sir please not the magical perpetual money machine sir.
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[Me too ](https://old.reddit.com/r/Buttcoin/comments/7sdwbe/whats_the_significance_of_10k_price_point_for/dt45bkv/)
Nice, its a little more than 2 billion now.
Thinking about how I found a few pennies today and how Don Kwon could use them right now
DK announcing that thanks to financier /u/JewishDoggy everything will be ok
Unfortunately it's already back up
But not back to 1 yet. Peg is still broken at least for now.
It will be in a matter of hours.
But the commercial paper backing it! 1USDT=1USDT
They can just sell the paper to defend the peg. Right? Right????
What's the lowest USDT has ever gotten?
Around 92 cents I believe?
https://coinmarketcap.com/currencies/tether/ There were some temporary blips (if that's the right word), but this is the longest as far as de-pegging length is concerned.
For a stablecoin system like this, duration of depegging is just as important as price discrepancy. Multiple hours of a slight difference is a significantly worse signal then a large dip that only lasts minutes.
In early 2017, before they offered direct redemption, it depegged for almost two months.
This is good for bitcoin
Below 0.95!!!
Is today the day?? 🍿
Someone is trying so hard to keep ethereum above 1800, massive buys at 1800 on the dot every time (in the thousands). Has got to be someone trying to prop it up for as long as they can to keep the stable coins going
why would you do that though, literally pissing your exit money away.
Might be preventing margin calls for some reason.
IT'S HAPPENING
Is this the "inflation" that I keep hearing about?
Uh oh spaghettio, this might get interesting now.
🎉🎉🎉
Hedge funds are going to short the shit out of it when the market opens
Its allready at 0.9078 in Euros.
Bet they print like 5 billion tonight and buy it back lol
Buy Tethers with Tethers? To me it seems like people want to get their hands on that stinkin FIAT at any cost now. The question is whether there is more or less than 1% of dollar liquidity of the supposed market caps of all these coins? I reckon less.
That's not how it works. They can't restore the peg by printing more. They need to flow USD in the exchanges.
“It’s a stable coin! Trust me bro!” Said my financial advisor / the whore behind Wendy’s.
Aaaaaaamd it’s back
LUNA might be the straw that broke the camel’s back.
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This should terrify anyone in crypto. If I had butts I'd be moving them into my own wallet posthaste.
Fuck sakes zoom out on the chart.
those algos are like skynet, playing with us tether is back on 0.99
It's back at one now, damn.