USDD/Tron near collapse: USDD stablecoin below $0.97, reserve collateral drained
old.reddit.com
old.reddit.com
Justin Sun announcing announcements was a common meme back then.
John McAfee was promoting it.
It is astounding that some people still take this obvious joke serious.
Cryptocurrency was and still is being shilled everywhere and FOMO is real.
Venezuela's inflation rate was 1,700,000% in 2018.
This was more or less my impression on reading the article. Events have revealed that most of crypto is made up of playthings and pseudo-scams, but this article takes it really seriously.
Holding XMR means losing money because it doesn't increase in value proportionally to BTC and gets absolutely destroyed even in minor market crashes. It would be so nice if Monero turned into the de facto stable coin of the cryptocurrency world but it's still way too volatile with all the drawbacks and none of the benefits.
In fact, I would dare say that crashes are good for the ecosystem for this exact reason. At the end of the day, the only people left will be those who really care about privacy and security - and that's when we'll see more substantial advancement in those areas.
The thing is that it doesn’t create any value, it’s all a game of musical chairs. I don’t care VCs holding the bags, but I do care about the retail “investors” that were naive. (I don’t care about the hfsp bros).
In a few years we will look back at the crypto space and we wonder why nobody intervened like nobody intervened with Madoff, despite multiple people warning about him.
The damage the crypto space has caused is just beyond redemption. To both people and the environment.
It’s time that this stuff is regulated to death. It will also kill the crypto ransom ware pipeline because of a lack of on/off ramps.
Not that the contractors would all be bad people. But sanctions are there to force change. The easier it is to make sanctions ineffective the longer change will take.
I would argue the more the economic exchange to violence ratio is between two groups, the better it is for both groups (maybe not the leaders)
However, the massive speculation and pollution caused by crypto make the overall balance look strongly negative to me.
"Hawala as a legal concept came to be described as early as 1327, according to Schramm and Taube,[5][6] though the actual practice has existed since the 8th century [...]" https://en.wikipedia.org/wiki/Hawala
But there is a tipping poing when a dictator and his elite falls. Nobody thought the Soviet Union or the GDR would fall in 1989/90. But they did, at some point the lying just did not work anymore. As long as average peaceful people can make a good living this is much less likely to happen.
Many Russians that get cryptocurrencies from other countries used it to buy plane tickets to fly away (or other means to get out of the country), and they are definately not want to pay taxes, but are contributing the brain drain that is likely happening right now.
I am paying for programming services. Traditional banking system is unreliable, so I use crypto. Nothing illegal or unethical!
An action does not get ethical because others are worse. It's good for your conscience noting others are worse, I don't deny that.
(And I did not say that I don't do the same. I recently had to take a plane. It was unethical to make Russia's war budget grow a tiny bit by doing so, but I thought staying at home would have had other morally unpleasant consequences.)
Chase lets you send wires online for 40 bucks still to all but half a dozen banks there. There might be cheaper ways to wire, too. Not sure what's so unreliable about that, worked all of this year so far.
Lots of caveats as I don't have enough information, happy to be corrected though.
But I think that these sanctions against Russia are ethically justified. So circumventing them is unethical for me, whether illegal or not.
Edit: Saying that these sanctions are ethically justified does not imply that they would be the most efficient or effective way to stop the war.
https://www.reuters.com/business/finance/crypto-exchange-bit...
Such a cruel joke from mother Nature putting all those natural resources in the hands of a nation and people so unworthy.
Read some history. "unworthy", yeah, sure.
(lol)
That said I’m being a bit pedantic as the specific design of USDD (as well as UST) has that property since the collateral is correlated to the stablecoins peg. So you’re correct in this specific case though not in general.
The point is that the ability to maintain the peg is the only important value of a stablecoin, if this is brought into question it will be tested. Once it is tested it will either hold, thus 1 or fail and reside permanently at 0. The exact implementation of the peg management - human, algorithm or otherwise doesn't change this fact.
In other cases the primary use case can be to provide liquidity for a product or service. In these cases, a strict 1:1 peg isn’t needed as the product essentially goes on sale if the stablecoin’s value falls. Of course the merchant needs to be locked in to the stablecoin as the sale mechanism for this to work.
Pro-tip: they won't
And even worse: you won't "notice" its actual value is falling until it's too late
Or use Belize dollars. They’re worth $0.50 by law and have no instability issues.
A true dollar, offered by a bank or money market fund, has assurances from the US that it really exists in our federal reserve system.
A stablecoin is a chuck e cheese token pretending to be a dollar. I can make an excel spreadsheet pretending I have a billion dollars, but I'd be a liar if I did that.
1) Actual regulated banking is ... well regulated. Buying and possibly selling monopoly money passes this regulation.
2) Making a token out of everything allows you to play on the chain.
3) There is profit in trading customers real money to your own monopoly tokens... Which of value is determined on market while you keep the real dollars.
4) It could allow some people to argue that they never realised any profits from their trading. Thus tax avoidance...
Okay this sounds a bit too cynical but each crypto bull market resulted in exactly that, unfortunately.
Of course, that will never happen as having the ability to restrict capital flows is a key power government wants to retain.
This sits right next to the sibling poster's comment:
> The US dollar is regulated and it’s use and transfer crates all kind of legal issues [...]
It looks like people who want stablecoins can't even agree on why they want them.
Or opposite of the word stable coins during bear markets behind the scenes with the firms that have to dramatically increase the assets used to peg the one dollar value.
That means we have two leverage levers at work the crypto coin used in trades and the stable coin itself.
In reality you haven’t solved anything because there’s a trust element. It’s just moved. Also you need deep reserves to maintain a peg. There have been several attempts at an algorithmic stablecoin but they’ve had a tendency to collapse spectacularly.
Maintaining a peg in the real world is tricky too. Real world pegs can and do fail.
The main reason was that historically, crypto institutions tended to be no-questions-asked blacklisted from any real bank, so those who could get banking made stablecoins. Circle, who runs USDC, got banking access from some favorable VC connections iirc, and Tether .... who knows.
[0] https://www.coindesk.com/learn/crypto-capital-gains-and-tax-...
Random exchanges can‘t print dollars, but they can print stablecoins to prop up other crypto prices.
Sun was on twitter a few months ago shitposting about "steady lads deploying capital" (referring to Do Kwon's infamous Terra posts) as it lost the peg before, and nothing came of it then either.
USDD isn't a 1:1 asset backed coin, and it's not a properly algorithmic coin. Also Justin Sun is a piece of work. It's all just a weird mess. Moreso than usual for crypto.
We’re not making the world a better place here, folks. Good effort, but no. Let’s stop now.
Kitchen knives are not required for life, but they enable murder.
I find cheerleading really unnecessary, but it leads to 20K injuries amongst adolescents every year. Why is nobody stopping this?
Criticism of our existing financial systems is valid but it’s a different topic, it does make society happen and has tremendous value.
Crypto has negative value. It undermines society, and it actively facilitates crime.
Attempting to invoke the thankfully largely-discarded concept of "whataboutism" is actually just a kind of backhanded ad hominem used to avoid making a real argument and instead try to make people "look the other way".
Criticism of the existing financial system in the context of discussing a proposed replacement for it is about as related a discussion as possible.
Simply stating that all crypto is bad/criminal adds nothing of value to the discussion.
The truth is that there are (as there generally is with new technologies), useful and practical purposes to which they are applied. Indeed, the majority instances so far of "crypto" having caused harm has actually been the result of an ordinary centralised trust-based fraud donning the label "crypto" to draw in victims to loot.
The #1 mantra of crypto has always been "not your keys, not your coins". Had it been followed, instead of perverted into its opposite and mislabelled "crypto", the most heinous of these scams would not have been enabled.
The thing most actively facilitating crime and fraud in "crypto" lately is the profoundly misguided belief that giving your money to someone you've never met you saw on TV is safer than keeping it in your own wallet.
Crypto is not to blame for that belief, it was invented to provide an alternative.
>Attempting to invoke the thankfully largely-discarded concept of "whataboutism" is actually just a kind of backhanded ad hominem used to avoid making a real argument and instead try to make people "look the other way".
Moments of clarity like this are one of the main reasons I keep coming back to this place. :D
You can question the relevance of a comparison without questioning the integrity of the person bringing it up: say it's off-topic and explain why.
More often than not, accusations of "whataboutery" are used to avoid having to explain why something isn't relevant and thus avoid addressing whatever point is being made. I'd go as far as to say it's why the word even exists.
No, the financial system is the reason Bitcoin was created: state and banks are cooperating to debase the national currency.
Crypto undermines tyranny, not society.
In all my tears of living I’ve never had a conversation where someone used the word tyranny and banking in the same sentence.
Average joe just wants their assets insured and kept in a safe place.
"Permit me to issue and control the money of a nation, and I care not who makes its laws." - Mayer Amschel Rothschild
"EThe Times 03/Jan/2009 Chancellor on brink of second bailout for banks"
The financial system is explicitly on topic when discussing Crypto Currency.
Bitcoin was created partly as a reaction to public funding of private cronies (see the genesis block coinbase). If the national currency is debased like this, at the expense of the general public, clearly the government is not doing its job.
Bitcoin makes it so that the supply is well-known in advance, and only the owners can spend the currency.
Give me a digital payment option without kyc or a risk of "assets are frozen because ____ gov said so" then we'll talk.
As an adult, take responsibility for the consequences of the risks you take. If it isn't crypto the it is the race tracks or lottery. High risk, high reward and you knew that getting into it! No one forces you or tricks you into using crypto.
Haha, you’re a funny guy. This thinking is fantasy. People can’t regulate themselves.
Keep thinking this though if you are that delusional.
Dude, most anything in violation of KYC is sketch.
I don't understand the illegal immigrant comment. Please do explain that if you like.
And I have paid for cars and expensive things in cash myself because I value my privacy.
If crypto is banned and kyc and cash restrictions take place I will be forced to work with shady people and only hope they cause more harm to this messed up society that wants to take my liberty away. I would gladly fight in or support civil wars for this cause.
Since the dawn of civilization, it has been a right of a free person to own what they want and barter it or exchange currency for some item.
The governmemt does not get to understand or track what sources I get money from. Before the internet, no government cared so long as we paid taxes on all our income.
Find another way to prevent "shady" stuff which fyi will not be deterred one bit, criminals would trade rocks as currency backed by a bigger criminal before letting this bullshit stop them. It's my unaluenable right to not be forced to do business or hand my earnings by default to a third party company be it banking or insurance. May society burn before that happens.
And another one gone and another one gone
Another one bites the dust