Re:Bitfinex and Tether required to end all trading activity ...
by hntrader on Tuesday February 23, 2021 @03:58PM
(#26242793)
USDT has a market cap of $35bn, let's say that 30 percent is unbacked and the corresponding USD was used to buy BTC. That's a position of at least $11bn. It's probably worth more than that now, since the price went up after they supposedly bought in, but they only need to liquidate $11bn to return the USD to their reserves to make it 1:1 again.
The market cap for BTC is $1000bn. Wouldn't they easily be able to unload the position over a 1-3 month period without too much price impact? They own 1 percent of the market cap, and in the stock market we often see larget stockholders than this unload their whole position without a catastrophic impact.
The market cap for BTC is $1000bn. Wouldn't they easily be able to unload the position over a 1-3 month period without too much price impact? They own 1 percent of the market cap, and in the stock market we often see larget stockholders than this unload their whole position without a catastrophic impact.