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.
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.
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.
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.