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A comment on Coinbase Drops Promise of Token’s Cash Backing That Wasn’t True. Parent comment

Re:Coinbase Drops Promise of Token’s Cash Backing That Wasn’... by 35fbe7d3d5b9 on Wednesday August 11, 2021 @11:05AM (#28142882)
> Every other asset has a risk of its price changing. It may be worth $1 today but it may or may not be worth $1 tomorrow.

A rational market would react by revaluing USDCUSD and pushing the price point to where they'd expect.

But we should look to what happened when USDT openly admitted they were backed somewhere around nine cents to the dollar: absolutely nothing, the peg held.

So has the market really priced in the risk of 39% of assets not being cash/cash equivalent? I suspect that's unlikely, but I also expect no material change to USDCUSD. Today, at least.

[ Parent | on HN ]
Re:Coinbase Drops Promise of Token’s Cash Backing That Wasn’... by NelsonMinar on Wednesday August 11, 2021 @11:13AM (#28142989)
The Economist this week has a really eye-opening article about the state of Tether. "With estimated leverage of 383-to-1, Tether would be unable to honour all its tokens after losses of just 0.26%". The moment we have a major adjustment in the bond market this not-actually-stable coin seems likely to explode.

https://www.economist.com/leaders/2021/08/07/why-regulators-...

[ Parent | on HN ]