News for hackers. Stuff that matters.

A comment on $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse. Parent comment

Re:$3B in Bitcoin was sold in a last-ditch attempt to save U... by bpt3 on Monday May 16, 2022 @01:07PM (#31400386)
Did Citibank claim that its value was one-to-one backed with U.S. dollar reserves until they were caught not doing so?

If not, they're probably not a relevant comparison to Tether.

[ Parent | on HN ]
Re:$3B in Bitcoin was sold in a last-ditch attempt to save U... by onlyrealcuzzo on Monday May 16, 2022 @01:10PM (#31400416)
Irrelevant because for >99% of depositors (NOTE - not total deposits) FDIC insurance will pay them out in the event of a bank run.

For the vast majority of users - the difference in 1:1 backing and FDIC insurance is irrelevant. This is the reason you'll almost certainly never see a global bank run. It's the reason why we probably will eventually see a Tether bank run.

[ Parent | on HN ]
Re:$3B in Bitcoin was sold in a last-ditch attempt to save U... by bpt3 on Monday May 16, 2022 @02:34PM (#31401547)
We agree, the person I was responding to doesn't seem to grasp that.
[ Parent | on HN ]
Re:$3B in Bitcoin was sold in a last-ditch attempt to save U... by jpmattia on Monday May 16, 2022 @01:15PM (#31400475)
> Did Citibank claim that its value was one-to-one backed with U.S. dollar reserves until they were caught not doing so? If not, they're probably not a relevant comparison to Tether.

I'm not getting what you're saying here: They should make good on their initial message from several years ago? They should now keep all assets in dollars and not earn interest?

[ Parent | on HN ]
Re:$3B in Bitcoin was sold in a last-ditch attempt to save U... by bpt3 on Monday May 16, 2022 @02:36PM (#31401574)
> They should make good on their initial message from several years ago?

Yes.

> They should now keep all assets in dollars and not earn interest?

Since that was how they initially generated interest in the asset, yes.

[ Parent | on HN ]