Comment by PragmaticPulp | Hacker News Reader

Comment by PragmaticPulp | Hacker News Reader

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> You either receive the Tether you asked for to make your own trades, or they keep the Tether and purchase the crypto you really wanted. In either scenario, someone besides the OTC has the Tether now.

So instead of buying coins directly, people are buying Tether then immediately selling that Tether to… someone? Who apparently is okay holding on to huge quantities of Tether?

It’s weird that crypto proponents always act perplexed at why anyone would hold large amounts of fiat losing out to inflation, but when that fiat comes in the form of a cryptocurrency representation it’s actually okay and perfectly logical for huge amounts of it to exist in the crypto system, sitting in a few very large accounts somewhere.

Comparing Tether to USDC is also conveniently ignoring the fact that Bitfinex and Tether tried to mislead everyone into thinking they were unrelated companies, when in fact they were tightly coupled this whole time.

They're not even 'tightly coupled'. They're literally the same people.

The Bitfinex loan to Tether literally had the same two signatories on both sides of the loan.

Any major stablecoin is good for buying cryptos within the crypto ecosystem which have no fiat markets. Tether happens to be the one with the most liquidity and broad acceptance. As others mentioned, they are a stable value interface into the crypto native ecosystem. Nobody in our conversation is advocating for fiat in cryptocurrency representation, I’m telling you the answer, our feelings about Tether doesnt change the accuracy of the answer.

Liquidity providers are the ones okay holding large amounts of tether. Just look at the liquidity pools, they all earn commissions from other people routing trades through those pools onchain, and many of them yield farm too. The risk is tolerable for them, Tether has had much greater crisis of confidence in the past and didn't implode, trading at worse 15% away from $1 for prolongued periods of time so if those werent going to make holders lose all their money than (compared to the 99% drops in most crypto assets) then people have more confidence amongst the universe of pricing confidence. That's where we are.

Like I said, and what you walked directly into anyway: Bitfinex and Tether’s poor management and governance and opaqueness are issues, randomly picking any Tether headline as validation of those issues are a distraction, as it clouds everyone’s ability to focus on real issues with Tether.

Did you know that if you don’t do your transaction by 1pm pacific time you can no longer do business in the us?

Fed wires are only available 8-4 weekdays. Us wires are not very liquid.

Compare contrast with usdt and it’s instant settlement 24/7. So yeah the exchanges prefer it vs tradfi.

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