Conversation

Meltem Demirors
@Melt_Dem
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
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.
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Jesse Powell
@jespow
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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husam.eth
@drhus
What position you are talking about? Can't you just send USDT to Tether Limited and they wire you the USD next morning?
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Dominikas Shpota
@one8tyfive
How is the spread linked to withdrawals ? 🧐 If it is backed, it is backed, and people are withdrawing with a certain market discount based on the spread, but that's their choice
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