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by Grimburger 1195 days ago
Tether, the Sauron of stablecoins, has zero exposure to SVB and is holding the peg just fine. Sorry Patio and friends, maybe next time :)
6 comments

Of course they wouldn’t have exposure to a bank in the US. There’s a reason that Tether has to do business with the more dodgy kind of offshore banks… Their exposure to any banks is likely far, far smaller than their claimed cash reserves, so it’s unlikely to be a bank crash that stops the Tether musical chairs…
Tether has significant (if not most) of its reserves in US Treasury. I'm pretty sure they are trading in US markets/banks.
You do realize that everything Tether says is a lie ?

It's all just a huge scam.

It's not easily provable with Treasuries, but it was easily provable when they claimed to hold something like the 8th biggest position in US commercial paper - which is not traded anonymously - and no commercial paper trader ever traded with them.

> Tether has zero exposure to SVB

It turns out if you have no assets you have no exposure.

Heh, I come here to write exactly the same comment !

You can't have exposure, if you don't have any real assets.

Frankly, this is all mind blowing - it will be in all finance books in the future, and we have the privilege to see it happening.

Tether has lots of experience in this field. They were "pioneer" and they went through a lot worse: Tons of FUD, the Bitfinex exchange hack, lawsuits, bank runs etc...

In short, they are battle and stress tested to the maximum.

more like experienced fraudsters. madoff was able to keep his scheme going for far too long i.e. multiple decades
I wish people would stop making this comparison. Madoff fell the moment someone tipped him.
I don't know whether you're uninformed or deliberately misleading, but that's entirely wrong. He fell after he confessed his crimes to his kids and they informed the FBI (on 2008-12-10, with his arrest the very next day).

However, people had been informing the SEC with suspicions a decade earlier, as recounted in the book No One Would listen: "Madoff Securities LLC was investigated at least eight times over a 16-year period by the U.S. Securities and Exchange Commission (SEC) and other regulatory authorities."

https://en.wikipedia.org/wiki/No_One_Would_Listen https://en.wikipedia.org/wiki/Madoff_investment_scandal

> Tether has lots of experience in this field. They were "pioneer" and they went through a lot worse: Tons of FUD, the Bitfinex exchange hack, lawsuits, bank runs etc...

They're experts in fraud and deception.

https://youtu.be/-whuXHSL1Pg

Galaxy brain: don't hold verifiable assets at a real bank, don't care when the bank fails.

Tether didn't hold its peg though; it went up to about $1.03. For a stablecoin going up is as bad as going down. https://coinmarketcap.com/currencies/tether/

On black market, USDT frequently trades higher than 1 USD, because it's easier to transfer.
> Tether, the Sauron of stablecoins, has zero exposure to SVB […]

How do you know?

I have very little confidence that tether can survive a similar bank run if/when people want to turn in large amounts of it