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Booyah- posted:Didn't you get probated for advising someone to put 80% of their net worth into stablecoins to yield farm? Yeah. You could put it in as USD and get APY (4%/yr) as well on nexo, it's not like it had to be tether. Only problem is a lack of FDIC insurance. But it would have solved their financial poo poo pretty quickly without a lot of risk. They came into a lot of money and wanted to dump it into a house, which would have created more bills. If I had $1m sitting around I would park it into nexo's USD and try to never have to touch the principle or something. Which, by the way, if you look at the entire market hellscape (not just crypto), would have worked out just fine. I mean what is the alternative given a market waiting for a recession, invest away? I mean hell, Anchor is one thing that was lovely and a straight ponzi. Nexo is at least a little better on that one. notwithoutmyanus fucked around with this message at 07:07 on May 12, 2022 |
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May 12, 2022 07:04
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Dr. Video Games 0031 posted:Yeah, there seems to have been a big depegging in 2017, a couple episodes in 2018, a blip in 2020, and now this. This may not lead to a UST-style total collapse, but it's definitely not something that happens all the time. Important to know how much there was in circulation at those times. (way way less) 
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May 12, 2022 07:06
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drk posted:I guess it depends where you look? Weird. Basically every site aside from the one you posted is showing charts like these:   
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May 12, 2022 07:07
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sick of Applebees posted:What am I looking at as a non Redditor? The fact it has the red SUPPORT next to it? Right after "6 hours ago" there is a tiny picture of a seal. That is the place where awards go, you can give a post gold or awards (I think you have to spend real money to give people fake awards?). One of them is the smug seal, which I believe is derived from the "Seal of Approval" meme. https://knowyourmeme.com/memes/seal-of-approval So a guy said he's going to kill himself, and another reditor gave his seal of approval.
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May 12, 2022 07:09
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Facebook Aunt posted:Right after "6 hours ago" there is a tiny picture of a seal. That is the place where awards go, you can give a post gold or awards (I think you have to spend real money to give people fake awards?). One of them is the smug seal, which I believe is derived from the "Seal of Approval" meme. https://knowyourmeme.com/memes/seal-of-approval Ah, it was too small on my phone to tell what it was, I just assumed it was a troll face.
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May 12, 2022 07:11
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Yeah, I see USDT depegging a little, which given circumstance *normally& implies people are doing insane amounts of leverage at the moment. Either to do a bank run just like UST or just have a lot of open positions. Because for crypto in general, people usually (Sell) stablecoin to (open) leverage position and vice versa when closing. Doesn't mean USDT can't completely and entirely go to poo poo, which it could. Currently, it looks like maybe someone is doing a bankrun for USDT across a bunch of exchanges right now, because I see Kraken inflated and I see poloniex deflated on the USDT pricing.
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May 12, 2022 07:13
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What's the importance of Tether? I've seen people saying that if Tether goes, so does all of crypto or something of the sort and I can't find why that might be.
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May 12, 2022 07:14
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And before someone points it out: yes tethers value plummets before bitcoin goes on a tear and its most likely because they use tether to buy bitcoin and squeeze it. Make tether -> squeeze Bitcoin with Tether -> Tether plummets for a while -> sell bitcoin for profit -> use profits to manage tether If they cant prop tether back up because they are running low on cash its going to be real loving bad. Cash will become scarce on exchanges and you wont be able to "cash out" like normal.
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May 12, 2022 07:15
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Beartaco posted:What's the importance of Tether? I've seen people saying that if Tether goes, so does all of crypto or something of the sort and I can't find why that might be. i have read numerous explanations, and everyone once in a while there is a glimmer in my brain that say "oh wait...i think i see how it works" but then it disappears and i go back to not having any goddamn idea
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May 12, 2022 07:15
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spunkshui posted:It had wilder swings in the past, but there was way less tether then. actually, this is good for buttcoin
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May 12, 2022 07:16
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the funny thing about all this poo poo with stablecoin ust and luna is that this poo poo happened last year with titan and iron (the coin mark cuban lost his shirt on), and they had the same issues. basically since its all decentralized, they still have to use workarounds to do stuff they want. for example if they want data about the price of LUNA you can't just write code that finds the price. no you have to have an "oracle" setup that's basically like calling an API but because calling an API can have different results each time you call it, you have to basically call the API and then write this data to the blockchain. think about that for a second. to get the price of your coin (LUNA) and figure out how many dollars a LUNA is currently worth. you have to make a call to an oracle to get the price. getting the price requires posting data to the blockchain. the blockchain is slow. by the time the ethereum blockchain (i'm assuming its on ethereum but it doesn't really matter, it could be a side-chain) gets the previous value of LUNA.. the value of it probably has changed again because of the rush off people trying to sell off. the entire concept then of algorithmic stablecoin, or even a stablecoin where its a two-coin system is fundamentally unfeasible due to the lack of speed of blockchain. people continue to make systems off this. --- the absurd thing is that this event didn't shake anyone's convictions about cryptocurrency. Sure if it was one event I could see them continuing on but you just have event after event after event and you still hear them say, "wow i can't believe i lost it all. i did my due diligence i talked to people and still it went sideways!!!! next time i'll be more careful" and you're just pulling your hair out wondering why they can't make the final leap of logic.
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May 12, 2022 07:17
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Party Boat posted:As a purely speculative instrument, bitcoin only goes down if people believe it's worth less, and only goes up if people believe it's worth more. If cash stops flowing into bitcoin, the price stalls and begins to drop. Quoting myself re tether
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May 12, 2022 07:18
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Beartaco posted:What's the importance of Tether? I've seen people saying that if Tether goes, so does all of crypto or something of the sort and I can't find why that might be. Tether is the largest stablecoin, third largest cryptocurrency, and by far the largest cryptocurrency by trading volume (more Tether are traded in a day than bitcoin and etherium combined). If it implodes, not only does a store of value disapear, but a huge amount of liquidity as well.
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May 12, 2022 07:22
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Beartaco posted:What's the importance of Tether? I've seen people saying that if Tether goes, so does all of crypto or something of the sort and I can't find why that might be. The short explanation is that stable coins are like casino chips and they made more then they have money. The 3 big stable coins are all closely related to exchanges. A major stable coin failing means one of the main exchanges fails and everyone on it loses everything.
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May 12, 2022 07:24
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In other words: Stablecoins where invented because the blockchain ecosystem needed a currency.
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May 12, 2022 07:31
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ELTON JOHN posted:i have read numerous explanations, and everyone once in a while there is a glimmer in my brain that say "oh wait...i think i see how it works" but then it disappears and i go back to not having any goddamn idea The British Prime Minister Palmerston once said that only three people ever really understood a particularly complex international relations matter: "Only three people have ever really understood the Schleswig-Holstein business – the Prince Consort, who is dead – a German professor, who has gone mad – and I, who have forgotten all about it." Crypto works the same way.
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May 12, 2022 07:33
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Beartaco posted:What's the importance of Tether? I've seen people saying that if Tether goes, so does all of crypto or something of the sort and I can't find why that might be. Piggybacking on the previous explanations, a lot of these exchanges outside the US (including Binance, which is among the largest if not the largest) do not quote you prices in US dollars of whatever coins they list. Instead they quote prices and store your cash in one of these intermediate “stablecoins” that claim to be backed 1:1 by US dollars, represented on a blockchain for your trading convenience! Tether/USDT is one of the oldest and the most notorious, as it’s not clear exactly where these billions of dollars they’re supposed to have are actually on deposit, and at least two auditing firms that I’ve heard about quit without finishing an audit. Maybe these dollars we swear are backing up your USDTs are in a bank in Poland, no wait Hong Kong, no wait stop asking questions
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May 12, 2022 07:37
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Dr. Video Games 0031 posted:Weird. Basically every site aside from the one you posted is showing charts like these: Yeah looks like coingecko is wrong. Looking directly at the exchanges, its under $0.98 on FTX now. FTX/Alameda is a direct customer of Tether - if Tether is redeemable, they should be able to make an easy arbitrage profit on this. Moving actual dollars around isnt instant though.
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May 12, 2022 07:38
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Tether is comically shady and there's basically no reason to believe their attestations that they have enough cash reserves and short-dated debt to handle significant redemptions in the event of a big crash. Their main priority is making yield on their fiat by lending to risky foreign borrowers, and in the past they have lost huge chunks of money to fraudulent entities like Crypto Capital Corp. A single Tether is a promise to deliver one USD, and a lot of people think Tether is probably not good for it if poo poo hits the fan. This is a good thread on it by Matt Ranger whose blog is excellent in general: https://twitter.com/vhranger/status/1523835842573357057 The hilarious corollary of this is that no one in crypto wants to wake the sleeping dragon that is Tether by trying to redeem big amounts, and you can't even do this unless you are one of their direct customers like the big exchanges. WorldIndustries fucked around with this message at 07:42 on May 12, 2022 |
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May 12, 2022 07:40
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May 12, 2022 07:40
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Beartaco posted:What's the importance of Tether? I've seen people saying that if Tether goes, so does all of crypto or something of the sort and I can't find why that might be. it is the embodiment of confidence, which is really important in a ponzi scheme. ive never read a single thing btw
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May 12, 2022 07:42
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no words e: also I forgot to mention that there's not enough fiat in the crypto ecosystem to settle the mark to market value of the coins. When people say Bitcoin and Ether together have a 700 billion market cap, that's assuming everyone bought in at that price and could cash out at that price. Theoretically there's $130bn in Tether+USDC but a run on the bank situation for a fraction of that could be disastrous WorldIndustries fucked around with this message at 07:48 on May 12, 2022 |
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May 12, 2022 07:42
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Beartaco posted:What's the importance of Tether? I've seen people saying that if Tether goes, so does all of crypto or something of the sort and I can't find why that might be. you can think of it as a paypal that exchanges and to lesser extent retail investors use to send/loan each other actual dollars instead of volatile/high fee crypto, internally they use a centralized (probably sql) database so trades are fast and effective, like a real bank unlike a real bank (who needs to borrow from a central bank) they're of course free to add new tethers anytime to their internal database to manipulate exchange prices and do wash trading, and use their actual dollars they receive from exchanges/retail to do some risky investments (commercial paper) if the exchanges start to withdraw more money from tether than they have it'll obviously cause some problems for the exchange (they can limit withdrawals, claim they got "hacked", do unscheduled maintenance), it might work for a while but if the run is big enough all the tether-involved coin exchanges are expected to run out of money at the same time, which I think is all of them except maybe gemini? Vesi fucked around with this message at 07:58 on May 12, 2022 |
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May 12, 2022 07:44
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Booyah- posted:no words "Good news! Bitcoin's on sale!"
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May 12, 2022 07:44
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Here is 1 full year of Tether data. Its now 0.97 Why doesn't everyone want to buy it at 0.98 anymore? They dont think its going to get repegged lol 
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May 12, 2022 07:49
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if bitcoin drops to a dollar, i'll buy one
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May 12, 2022 07:53
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Vesi posted:you can think of it as a paypal that exchanges and to lesser extent retail investors use to send/loan each other actual dollars instead of volatile/high fee crypto, internally they use a centralized (probably sql) database so trades are fast and effective, like a real bank You seem to have fallen for the funniest part of the joke, which is that you cannot and never have been able to actually trade Tethers to them for actual real dollars. They just promise they have enough, and that a Tether is totally worth one real dollar. That's it. They just promise.
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May 12, 2022 07:59
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drk posted:Tethers blowup is a story for a different day. Welp, this take aged poorly, Tether lost like a billion dollars while I was brushing my teeth
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May 12, 2022 08:06
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0.9626 lol
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May 12, 2022 08:06
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Dr. Video Games 0031 posted:if bitcoin drops to a dollar, i'll buy one don't
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May 12, 2022 08:07
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Guys i think it might be happening
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May 12, 2022 08:10
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this is insane
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May 12, 2022 08:11
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May 12, 2022 08:13
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.9564 Now… if you have a “stable coin” is it bad if it loses 5% of its value in 24 hours?
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May 12, 2022 08:14
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This is a once in a lifetime chance you fools, you idiots. 
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May 12, 2022 08:17
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https://twitter.com/BinanceUS/status/1524613930290749440 of course
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May 12, 2022 08:17
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Booyah- posted:of course quote:Please note: 
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May 12, 2022 08:19
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This is like what Robin Hood did right? They get to still gently caress around behind the scenes but the bag holders can’t get at their money?
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May 12, 2022 08:21
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.9485
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May 12, 2022 08:23
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https://twitter.com/DesoGames/status/1524650622485684225
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May 12, 2022 08:28
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