Bitfinex and Tether required to end all trading activity with New Yorkers

Re:Bitfinex and Tether required to end all trading activity ... by ac29 on Tuesday February 23, 2021 @08:09PM (#26245347)

> If you really disagree, you can even short USDT, by borrowing USDT on Compound at 4.2%. Then use that to buy USDC and supply it on Compound at 4.9%.[2] If USDT collapses, you'll make nearly 100% as you'll only have to buy back now worthless USDC. In fact the market will even pay you take this position, with the only risk being if USDC collapses relative to USDT.

This trade involves risk, and not just the direct USDT risk. If it didn't, there's no particular reason multi-billion dollar hedge funds wouldn't buy this down to the yield of an equivalent US treasury or similar.

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Re:Bitfinex and Tether required to end all trading activity ... by lovedswain on Tuesday February 23, 2021 @11:11PM (#26246495)

> If it didn't, there's no particular reason multi-billion dollar

This is true in theory but in practice it seems much more commonly false. Even in vastly more mature and liquid markets, straightforward arbitrages can persist for years and in some cases decades, even after an inefficiency becomes public knowledge

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