CoinDeskVerified account

This was the argument I made during my @krakenfx -Tether reporting— significant demand should drive a stable coin up in secondary markets — and people were like you’re crazy

secondary markets = book entry trading accounts

don’t follow you, I mean exchange trading (add air quotes, I guess?)

If an exchange has a total of, say, $10m TUSDT, and traders sell $30m of USDT for TUSD overnight (without directly purchasing from TrueUSD), where did $30m TUSDs come from? The CFTC has been busting this scheme with bullion dealers for decades. https://www.cftc.gov/PressRoom/PressReleases/pr7228-15 …

In my experience the exchange’s amount of an asset it offers for trading is never a factor. @CMEGroup doesn’t need a reserve of Eurodollar futures because it only matches buyers w sellers. Crypto doesn’t seem to play by these rules, is your point?

CME is licensed futures exchange. Crypto exchanges are not. They don't meet the definition of 'actual delivery' (spot exchange) if they're offering trading while not being fully reserved on the undelying.

Just to add... if traders are dumping USDT, it's the exchange that's left holding them and is responsible to redeem or liquidate them with Tether. Traders don't control their keys so the exchange must act on their behalf -- at the same time balance their reserves.

Exchanges aren't the ones buying USDT when traders sell. It's other traders buying it. If no one wants to buy, the price falls more until someone does. Crypto exchanges are fully reserved -- that's why clients need to deposit an asset before they can trade it.

so now bitcoin is more stable than all the "stable coins" - Tether down 15%, Gemini coin up 20% ... interesting times indeed.

Still don’t understand why we need stablecoins. If I want to hold fiat I will hold it in an FDIC insured bank account. Has worked well for close to 100 years now.

Lol. How long did horses work great for as transportation.

Lol stablecoins are not cars

nor are they an investment VEHICLE HAHA

Lol. No they are to paper fiat what the automobile is to the horse and carriage. I can't believe I have to explain this. Obviously. My argument is not that "stable coins" are a replacement for horses you dimwits. They are a more efficient version of fiat.

lol of course that is understood......my point was they are not more efficient fiat they have all the same risks with addiitonal counter party risk and are in no way insured,. Bitcoin is the car to your fiat horse centrally planned on a block chain is still centrally planned

I must say I can’t believe you felt the need to clarify that you don’t think stablecoins are cars ...too funny

Why do people click to buy at 1.03 usd?! 1.2?!!!!! Why?!