macrocephalopod

You can borrow tether for 8-12% per year and short it. Easier than TSLA because your downside is capped.

Except for when Bitfinex shareholders pumped tether to a thousand dollars per Tether to wipe out your short position. On Kraken.

In practice you’d have a master lending agreement with whoever you borrowed from — they could demand margin to cover but you’d have good cause to dispute it if the price only moved on one exchange. As long as you’ve negotiated reasonable terms in your MLA you’d be fine.

Yeah that’s not happening.

What’s not happening? I’m not speaking theoretically here, you can short tether in exactly the way I’ve described, I’ve done it (not outright short — to hedge synthetic long tether exposure from elsewhere).

Okay, you short tether. On a tether exchange. Tether blows up, ceo and cfo arrested. Tether exchanges now bankrupt. How do you get paid?

https://twitter.com/macrocephalopod/status/1479888356079198217 …

Like I said — get borrow on tether from a lending desk, move it to an exchange, sell it for USD and withdraw the USD (which you use to collateralise your loan). Your main risk is that they call back the loan, but you can even mitigate that by terming it out.