What insolvent companies hold tether?
If they did this would be the first thing they would unload as hey can always get park value for their tether.
One of the famous SBF screenshots showed Binance's CEO deeply concerned about someone selling US$250k (not M! K!) USDT, because they were afraid that might upset the apple cart, even though USDT is notionally backed by $68B of assets.
Exchanging $250k into USDC, DAI, BTC, or ETH is practically nothing compared to the daily volume, and exchanging one of those to USD in a bank account through an exchange is also not a big deal at all. 250k is a small amount.
If an exchange worries about $250k, it’s dead in milliseconds. There must be some huge context missing in that post.
* and even in this case a book will just swallow it at the expense of a market-order side and drift back in under a second.
But judge for yourself, here's what SBF has entered into the Congressional record:
https://imageio.forbes.com/specials-images/imageserve/63981b...
https://imageio.forbes.com/specials-images/imageserve/63981b...
I still don’t get how this could be interpreted as a “deeply concerned about someone selling $250k”, when the answer is “no I don’t think 100x that size would succeed”. From this I see one guy (C Z) who’s probably concerned about a supposedly systemic action with unclear goals, and another one (blue) fooling around a specific transaction.
I mean they could be deeply concerned as a person about whatever they projected about it, but it’s technically impossible with $250k which they admit right away. The way it was stated in the comment above is editorial, to say the least.
I mean, i've read those chats and that's not at all what CZ is saying. He even clarifies that selling 100x that amount would do nothing to depeg tether.
he just said a particular trader and one specific trade was a pain for his exchange.
And that doesn't in anyway change what I said that if someone was holding tether then they could still mark it at par and be fine with selling the entire amount.