101 sats \ 2 replies \ @siggy47 10 Nov 2022 \ on: Tether Freezes $46M of USDT Following Law Enforcement Request bitcoin
USDT lost its peg. If stablecoins are a casualty of this mess, things could get very interesting. It will take a while to sort out, but this may benefit bitcoin as decentralization and freedom from censorship are more highly valued.
[Update:
Oh, this from today might be something different going on than the CoinGecko issue.
Tether has not "lost its peg". It is on exchanges at $0.999 -- at the edge of the level that arbitrage is economic (because of trading fees paid to arbitrage). And Tether has not declined to pay out any USDT $1 -> USD $1 redemption request (other than the poor fucks who had USDT at FTX affected by this freeze).
If you are referring to the data issue at CoinGecko, ... that was a problem with CoinGecko not accurately tracking the exchange rate at certain exchanges. Addressed here:
FTX, Black Swans, and Tether's Continued Stability
#91796
https://tether.to/en/ftx-black-swans-and-tethers-continued-stability
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I guess next time I should check the news for the current day's events before making an assumption about a dynamic topic.
Anyway, today's issue has passed -- back to trading at the peg. I suspect there were some stops and levered trades (especially at Kraken)hat were negatively impacted.
And I'm not suggesting it is wise to hold funds in USDTs. But for my purposes, transferring funds from one exchange to the next, I'm comfortable with using Tether -- even if there is some movement against the peg, as I don't hold it for more than a short period of time.
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