A Bitcoin exchange has issued a product which they characterize as a Tether credit default swap. https://www.coinex.com/announcement/detail?id=26 … It will not surprise you that it is not actually a CDS, nor fit for the purpose you would want to use a CDS for, on *either side* of the bet.
-
-
Because tomorrow, Tether will be worthless. This causes the value of the Tether CDS to *decrease* when Tether becomes shakier and then increase (sharply) when the uncertainty is removed by Tether failing. This is not a desirable curve in a CDS product.
Show this threadThanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Is that based on the assumption that you wouldn’t be able to withdraw your
$crypto, move to another exchange and off-ramp it to fiat there?Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.