[tuesdayrain]

>I’ve been shorting a few bitcoin-related public companies on the theory that in a run on Tether they will have to liquidate large bitcoin holdings

I doubt a run on tether would even cause a 50% drop in BTC price. Hope your account doesn't blow up when Bitcoin inevitably reaches 1 million per coin ;)

[panarky]

Either markets work or they don't.

Sure, in the short term, unregulated markets can be manipulated.

But Tether's been around more than seven years, more than enough time for the "smart money" to profit by obliterating them.

You can sell Tether on Coinbase for U.S. Dollar deposits to your bank account.

The fact that Tether maintains its 1:1 peg to the dollar is a signal that maybe all the smart guys who have been confidently predicting its imminent and inevitable failure for the last seven years might be missing something.

[pcwalton]

> But Tether's been around more than seven years, more than enough time for the "smart money" to profit by obliterating them.

> The fact that Tether maintains its 1:1 peg to the dollar is a signal that maybe all the smart guys who have been confidently predicting its imminent and inevitable failure for the last seven years might be missing something.

Bernie Madoff claimed that his scam started in 1991, though in reality it was probably much earlier. It didn't collapse until 2008.

Even in the cryptocurrency space, Mt. Gox took five years to collapse.

[alisiddiq]

You are deluded if you think tether has 70bn liquid assets in case there is a run.

The question of a collapse is when not if.

[paulgb]

> But Tether's been around more than seven years, more than enough time for the "smart money" to profit by obliterating them.

How would the smart money profit from obliterating them? If you’re referring to a Soros/GBP style trade, how would one borrow enough USDT to pull it off?

[pjc50]

50% price fluctuations are normal in bitcoin. 31273 on 26 Aug, 65701 on 20 Oct.

[tata71]

What if Tether had rugpulled on 27 Aug?