I posted this a few days ago: https://news.ycombinator.com/item?id=26106281
1. You go on an exchange and bet on margin, say 100x
2. The bet is that DAI rises compared to USDt.
3. If, say, you bet $100, then you are wagering $10,000 via margin. So, if tether rises two cents, you lose $20,000 (or $200?). But if tether drops ten cents, you make $100,000.
A couple questions about your bet:
1. I’m assuming people think tether is much more likely to fall than to rise. So would the odds not be asymetric and you would lose much more if something happened to DAI? Such that you might lose $50,000-$100,000 if USDT rose?
2. If tether really blows up it could take down a lot of exchanges. If the exchange failed, what’s your max loss: just the original $100?
3. Supposing you win big but crypto implodes, your winnings are priced in...DAI, ETH or something else? If they aren’t priced in usd the value may be less than 100x if the whole crypto market falls.
I already have puts on RIOT and MSTR. With Elon jumping in perhaps he has some insider info that I don't, or he just enjoys manipulating markets and pump n' dumping. If Tether collapses and it dings TSLA, maybe that's just his way of telling everyone the stock price is too high.
Mind you not sure how it can be a risk free 100:1. I think this assumes the leverage is on the same exchange that goes bust.
When exactly is NYAG poised to make their announcement? On the 19th, over the weekend, or on next Monday?