I’m interested in shorting Tether (for the obvious reasons), but my default expectation is that there are not counterparties / pathways that are robustly ‘good for it’. (Get lots of shorts on an exchange, then the exchange dies, then I look sadly at my paper profits.) Are there methods that people trust for doing this? Why do you trust them?
Yeah, I’ve been wondering about this. The ideal in my head is to deposit some USDC as collateral into perhaps some defi thing, borrow USDT, and repay the loan on-the-cheap if USDT falls in price. (And if it doesn’t, all it should cost is some interest on your loan.)
But this kind of idea is still absolutely vulnerable to your counterparty going under and losing your collateral, which tbh seems likely to me across the board.
It seems risky to me whether you’re borrowing from an exchange or from some defi thing, since volatility is likely to be very high, and there are a lot of sophisticated players that want to exploit the situation for their profit.
Also, I’m interested to know where the hypothetical winnings are coming from if the short succeeds. I’m guessing the losers in this will be e.g. folks betting their life savings on leveraged BTC/USDT perp contracts, since everything seems based on USDT on the main exchanges that offer these… Which would feel rather unwholesome. =(
If you discover an appropriate mechanism, maybe there’s some wall-street-bets-style way to get a lot of people in on shorting Tether. That might be more wholesome, as a kind of community takedown. But still gonna wreak havoc if it succeeds? Idk.
Taking down Tether is likely to produce some havoc. Without claiming deep knowledge, my impression is that Binance makes the contracts in BTC/USDT because they are financially entangled with Tether. Taking down Tether might take down Binance with it.
I also really expected FTT to have fallen to zero by now, since it was at the center of this whole mismanagement, and now has no plausible value as a holding. This makes me more confused about what the near-term and medium-term fate of USDT will be.
I’m interested in shorting Tether (for the obvious reasons), but my default expectation is that there are not counterparties / pathways that are robustly ‘good for it’. (Get lots of shorts on an exchange, then the exchange dies, then I look sadly at my paper profits.) Are there methods that people trust for doing this? Why do you trust them?
Yeah, I’ve been wondering about this. The ideal in my head is to deposit some USDC as collateral into perhaps some defi thing, borrow USDT, and repay the loan on-the-cheap if USDT falls in price. (And if it doesn’t, all it should cost is some interest on your loan.)
But this kind of idea is still absolutely vulnerable to your counterparty going under and losing your collateral, which tbh seems likely to me across the board.
It seems risky to me whether you’re borrowing from an exchange or from some defi thing, since volatility is likely to be very high, and there are a lot of sophisticated players that want to exploit the situation for their profit.
Also, I’m interested to know where the hypothetical winnings are coming from if the short succeeds. I’m guessing the losers in this will be e.g. folks betting their life savings on leveraged BTC/USDT perp contracts, since everything seems based on USDT on the main exchanges that offer these… Which would feel rather unwholesome. =(
If you discover an appropriate mechanism, maybe there’s some wall-street-bets-style way to get a lot of people in on shorting Tether. That might be more wholesome, as a kind of community takedown. But still gonna wreak havoc if it succeeds? Idk.
Taking down Tether is likely to produce some havoc. Without claiming deep knowledge, my impression is that Binance makes the contracts in BTC/USDT because they are financially entangled with Tether. Taking down Tether might take down Binance with it.
I also really expected FTT to have fallen to zero by now, since it was at the center of this whole mismanagement, and now has no plausible value as a holding. This makes me more confused about what the near-term and medium-term fate of USDT will be.