To put this into perspective
1. 1 billion is just 1.33% of the total USD Tether has issued.
2. USDC also issued 1bn in the last 24 hours.
1. 1 billion is just 1.33% of the total USD Tether has issued.
2. USDC also issued 1bn in the last 24 hours.
Circle has absolutely never been audited. Circle, like Tether, has published attestations, which do not remotely approach the thoroughness of an audit.
You're making massive leap in logic. I completely agree with you. Regulators have been absurdly slow to react, and I think that both Circle and Tether will probably end up just fine, at least legally. There may be a cataclysmic breaking of the peg but ultimately it will be retail that gets slaughtered. Tether's own terms from day 1 have basically told you that all you're getting from them is something that hopefully someone else will value for close to $1.
I think these guys are pretty iron clad. Doesn't change the fact that Tether has almost certainly played a key role in manipulating crypto higher, on the mild end by providing leverage through crypto collateralized loans, and at the serious end by outright fraudulently printing Tether.
Circle is not a sketchy Eastern European or Caribbean operation. They have a big office in Boston across the street from the Federal Bank of Boston and employ highly paid people who wouldn’t jeopardize their careers. The FUD is just ludicrous.
Because being shady isn't illegal? You're the one suggesting this might amount to something felonious, which is perhaps telling.
> They have a big office in Boston across the street from the Federal Bank of Boston and employ highly paid people who wouldn’t jeopardize their careers.
This is a terrible argument. I have worked with people who were highly paid people working for well connected shops in fancy offices (Enron, Lehman, etc).
> The FUD is just ludicrous.
What FUD? Point to a single thing I've said that isn't purely factual.
Given the purported 1:1 peg with the USD, there is no advantage to holding any cash savings in USD[C|T] form.
I have had returns that are simply unmatched by any savings account, the liquidity pools with stabletokens help to reduce a lot of the volatility while generating some income from the collected fees, and if I there is any big downswings, I don't need to rush to cash out because most of my holdings are in stables.
I know that I don't want to touch Tether, but if USDC is also deemed toxic, it forces me to reevaluate the risks of both USDC and DAI (which is basically 50% backed by USDC currently)
It's worth pointing out that most pools with USDC on curve also expose you to USDT.
But to be completely honest, I am not on this anymore. I moved to the EURS/sEURS based one, as the CRV incentives are very good at the moment. Seeing how I was wrong about Circle status regarding audits, I need to do some more checks about the bank behind EURS.
Stablecoin returns aren't a miracle - you are effectively lending money to these organisations and taking on associated credit risk. For example there are many small banks around the world that will pay > 3% APR on USD deposits [1]
https://nomadcapitalist.com/finance/highest-interest-rates-b...
[0] https://www.treasury.gov/resource-center/data-chart-center/i...
CeFi platforms like Celsius or BlockFi can offer more, but they are just as risky as any unregulated sub-prime lender in a third-world country (eg micro-lending institutions can offer those sorts of yields too).
The reason DeFi loans are much lower yield than CeFi loans is precisely because the risk is on-chain in the former case, so deposits can't be stolen.
Not sure where you see 20-30% on USD? Those rates are an indication of a rug-pull scam or a ponzi imho.
You are also open to smart contract risk in Uniswap from your other comment, but they also have been around a very long time.
I wouldn’t worry about USDC, I would worry about everything surrounding it in the defi ecosystem.
Nonetheless, they have been done by independent third-parties who are a lot more reputed than whatever has actually managed to look into Tether's data. Even if you take the "attestation" done by Tether at face value, it showed a mix of assets that is absolutely unhealthy.
> Nonetheless, they have been done by independent third-parties who are a lot more reputed than whatever has actually managed to look into Tether's data.
Like the New York Attorney General? Go read the NYAG settlement. Tether got an attestation by wiring in $850m of Bitfinex's cash to their account the morning before an attestation, and then wiring it back to Bitfinex immediately after. The attestations merely state certain very shallow facts like "at this point in time, there were $X assets in an account". They do not audit the source and ultimate ownership of those things.
Look man, I get that you want someone to pump your bags. But sometimes it's best to just bite your tongue. Tether doesn't have any defense. They may be totally legit, and if they are, it's totally indefensible to act this way. And if they're not legit, well...
I am not defending Tether, quite the opposite. My only argument is in favor of Circle, and even then admittedly in terms of "Circle at least provides a better sense of legitimacy".
> I get that you want someone to pump your bags.
Sure, I will make a fortune by shilling USDC. /s
Anyway, you are right. I was under the impression that Circle was doing proper audits, and if that is not true, we need more people and exchanges pressuring them to do or to stop using it.
My bad, lost my sense of bearing in a Tether thread. I agree with you here, and for the blockchain work I do, I use USDC.
Appreciate the rest of your comments. Didn't mean to jump on you.
- A year ago 1B USDT would have been more than 5% of it's market cap.
- A year ago 1B USDC would have been 33% of it's market cap, today it is 2.5%.
A lot of stablecoin mintage has occurred over the past year.
And $2 billion USDT
Source: https://twitter.com/LucaLand97/status/1467591656870494210?s=...
Source for USDC prints: https://twitter.com/usdcoinprinter