Re:Report on Stablecoins [pdf]
by arcticbull on Tuesday November 02, 2021 @01:59AM
(#29077596)
There’s nobody to trade $70B USDT with except Tether Inc and they’re not paying out haha. Those folks are trapped.
[ Parent
| on HN ]
If you could borrow enough USDT though, you could still break the peg without transacting with Tether directly:
- borrow a ton of USDT
- trade it for USD on exchanges, eating away at organic demand as well as the reserves used to keep the peg
- eventually (presumably) the peg will break and the price will collapse, and you can buy back the USDT for cheap to repay the loan
The trouble is getting that USDT-denominated loan, though.
Re:Report on Stablecoins [pdf]
by arcticbull on Tuesday November 02, 2021 @02:42AM
(#29077839)
Agreed, the difficult part is getting a USDT-denominated loan without crypto collateral and counter-party risk.