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1/ if a stablecoin falls in value and no one is there to audit it, are the reserves actually there? nobody knows. all jokes aside, i've been ignoring stablecoins but threw together this little chart on the current crop of stablecoins. turns out $1 does not always equal $1.

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Jesse Powell

@jespow

Replying to

@Melt_Dem

Some of these rates are off, distorted by being paired with USDT. Try getting $20 out of an ATM and you’ll see the same phenomenon. With the $2 fee, your rate is 1.1 BankUSD for 1 CashUSD. In crypto, fee is in the spread.

2:10 AM · Oct 19, 2018Twitter for iPhone

Replying to

and

If you believe Tether is solvent why don't you buy $100 millions $USDT at current rate of 0.96

@krakenfx

and make yourself some sweet $4 millions tonight? You don't pay fee neither

It's not only about solvency risk. We have to consider the time value of money, opportunity cost, Taleb Distribution, etc. Even if Tether is 100% solvent, it doesn't mean that we'd be able to exit the position with an improvement on our PnL.

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