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by WinstonSmith84 1486 days ago
Tether, or rather Finex is a famous MM. Don't worry too much about their "other investments", they are up a lot no matter BTC price.

Tip of the iceberg https://bitinfocharts.com/bitcoin/wallet/Bitfinex-coldwallet

Also, you're going with the assumption they shall be able to redeem 100%. Crash happens, like we have seen, but everyone cashing out their USDT is not a scenario going to happen. Or if you want to account for this scenario, then you can as well assume that crypto is going to disappear, and that would not happen without a cataclysmic event in the stock market either. Probably we will be back to the stone age at this point, and will have other things to worry about
3 comments
ineptech 1486 days ago
> Crash happens, like we have seen, but everyone cashing out their USDT is not a scenario going to happen.

This seems wildly optimistic. All it would take is for users to adopt some new FOTM stablecoin faster than Tether backers can liquidate their reserves. It needn't be rational, either; it could be catalyzed by, let's say, a *ism scandal involving someone connected to Tether.

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solveit 1486 days ago
Without commenting on the likelihood of a tether bank run in general, it seems incredibly unlikely that it'll be catalyzed by an *ism scandal purely based on the general political leanings of crypto whales (hard to pin down on the left-right spectrum, but definitely highly libertarian for obvious reasons).
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giaour 1486 days ago
> but everyone cashing out their USDT is not a scenario going to happen

Didn't bankers say something similar in 1928?

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dsomers 1486 days ago
If I recall correctly, the stock market _only_ lost 90% of its value during the crash that proceeded the Great Depression.
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hiq 1486 days ago
It would be more relevant to compare to bank runs. How many banks got only 90% of their deposits withdrawn and managed to go through this?
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smoovb 1486 days ago
Correct. Finex may have started out on shaky ground, but now passed a NYAG lawsuit and is working to become more legit. Even the CEO is out in public now doing podcasts and he never used to be. The only way USDT fails now is a concerted attack, likely by a government, thru some mix of disinformation, lawsuits and new laws.
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