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A comment on FTX Tapped into Customer Accounts to Fund Risky Bets, Setting Up Its Downfall. Parent comment

Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by capableweb on Thursday November 10, 2022 @03:40PM (#33552978)
> JP Morgan says expect 50% drop across the board in crypto. Around 10 AM PST, somebody just pulled a billion dollars out of Tether.

Meanwhile, aggregate of the cryptocurrency market is up 5.38% over the last day, Tether recovered landing on 0.9999 USD after 4-5 hours of the drop hitting bottom at 0.9818 USD, which was nowhere near previous all-time low Tether has hit previously.

In other words, everyone screams "panic!" while the world quietly moves on.

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Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by Animats on Thursday November 10, 2022 @03:46PM (#33553072)
Tether will stay very close to 1.0 until, some day, they can't make a redemption. The number to watch is their "market cap". Note that Tether can make that go up by minting more Tether, but when you see it go down, that usually means someone cashed out.

Stablecoins have only two stable points: 1 and 0.

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Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by Panzer04 on Thursday November 10, 2022 @06:54PM (#33555412)
You'd think Tether would be printing money arbing their coin, at this rate.
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Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by fshbbdssbbgdd on Thursday November 10, 2022 @03:56PM (#33553223)
FTX let people withdraw 100% of the time until they didn’t.
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Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by UncleEntity on Thursday November 10, 2022 @06:45PM (#33555322)
Which is pretty good uptime if you ask me…
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Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by fshbbdssbbgdd on Friday November 11, 2022 @02:59AM (#33558293)
I guess the Tacoma Narrows bridge had 99.999% uptime because it lasted for months and then only took minutes to collapse.
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Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by ww520 on Thursday November 10, 2022 @04:42PM (#33553824)
Because CPI looks better than expected. The entire market goes up.
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Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by jquery on Thursday November 10, 2022 @09:49PM (#33556766)
Tether will unravel, it's only a) a matter of time, and b) whether it happens in public, or behind closed doors in smoky rooms.
[ Parent | on HN ]