Thats very interesting,
Crypto becomes more and more connections to classic finance. So the correlation should become bigger too.
But that's nothing bad.
Tether on the other hand knows only 1 direction, print more tokens. Like nobody ever cash out.
Many people claim "Tether fud is out for years", but 2017/2018 Tehter had a really low market cap compared to today.
The tether would not bust if there is no alternative, but if there is one, it could be. Simple because people want to store their value in some dollars.
What do you think, will exchanges make USDC to the tether replacement in a long run?
Tether has had periods of declining supply. It doesn't necessarily mean people cash out. Tether itself can buy back its tokens from exchanges.
I think this is what is happening in most of the cases, same with USDC.... maybe some exceptions with large players, no regular user will acctualy go to USDC and cash out
82 Billion and no major player in Finance ever have heard of it? :D I don't know they have backed it, even in particular,
Probably mostly bitcoin, tbh, perhaps with a bit of hedging, and effectively bitfinex fee revenue too. It was a leveraged bet on crypto that paid off huge. It crypto collapsed their business wouldn't be worth much anyway whether or not they kept the peg, so they YOLOd it and won.
True, But last Bullrun 2018 was the MC around 2,8 Billion and drops to 2 Billion year after.
At this time we are at 82 Billion and it doesn't stop rising. Tether printed in 3 month close to 60 Billion USDT.
I mean they won for sure for $$$.
But somebody hold that token now under the promise its worth x.
if trading activity decline, they have 2 choices. print more to keep the party on or the peg will bust,
Because so they only need new capital flow in for trading bitcoin/ other stuff and can arbitrage it.
Every Tether starts with Tether is a very interesting concept. There are no user funds.
Tether release and sell and after that user can hold.
Tether doesn't allow deposits. So we cant just simply send fiat for Tether.
Tether is deeply integrated in the crypto market, and the OG exchange will support it I think... it also seems to be used more from the east.
The question is how much will it blow up more? :D
People dont want to "Store value in dollars" But on a stable Unit of Account. And Tether is not "printed" is created after a collateralization effect, like USDC.
Meanwhile, HBD or UST are "algorithmic stablecoins" which means they are created after automatic burn/lock of other assets. Lots of grow ahead, if you ask me.
did you ever see an audit from tether assets?
No?
Did you know how to put Real money into Tether over the Tether LDT?
Also No?
Exactly that's the problem with tether.
They use their own exchange as collateral ( Bitmex).
And that is itself a ponzi.
Tether was more closely associated with bitfinex than bitmex, but maybe has some affilation with bitmex too (not sure).
my mistake! It was bitfinex.
Tether uses Bitfinex for the distribution. And tether minting is for institutions and OTC deals, not for normies. If tether is a ponzi, it is a way smaller ponzi than the FED,ECB,BOE and BOJ, so its fine for me at this point.
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