Potential Tether sanctions...

[intlman]

https://cointelegraph.com/news/us-government-investigates-tether-report

I reached out to a contact who works very closely with numerous LEAs in tracking illicit finance on-chain. They made it clear that while sanctions are very unlikely, the investigation is nearing an end and charges (Tether staff themselves and large bad actors in the space) will be forthcoming soon (after the election).

Interesting times ahead for sure.

 

[Houdini]

Whether it's just noise or not, I don't know. But it seems that they don't just freeze accounts or interfere with people's use of USDT the way some on the forum suggested.

Let's see what happens in the new order; for now, it seems fine to use USDT.

 

[OKboomer]

intlman said:
https://cointelegraph.com/news/us-government-investigates-tether-report

I reached out to a contact who works very closely with numerous LEAs in tracking illicit finance on-chain. They made it clear that while sanctions are very unlikely, the investigation is nearing an end and charges (Tether staff themselves and large bad actors in the space) will be forthcoming soon (after the election).

Interesting times ahead for sure.
Click to expand...

What would be the implications on holding USDT or borrowing USDT?

 

[intlman]

OKboomer said:
What would be the implications on holding USDT or borrowing USDT?
Click to expand...

Hard to say. I honestly don't do much with USDT (if I'm holding stables it's predominately USDC). I treat it much like cash in a bank account (read: ability to be seized any time) and have most of my long-term savings in BTC.

 

[JohnnyDoe]

Never hold any stablecoin for more than the amount you need to use short term (one week). This has been repeated again and again here on OTC, and I don't want to tell anyone “I told you” in the future.
Stablecoins have nothing to do with crypto.

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[intlman]

JohnnyDoe said:
Never hold any stablecoin for more than the amount you need to use short term (one week). This has been repeated again and again here on OTC, and I don't want to tell anyone “I told you” in the future.
Stablecoins have nothing to do with crypto.
Click to expand...

Well said!

 

[Freetrade]

OKboomer said:
What would be the implications on holding USDT or borrowing USDT?
Click to expand...

Worst case scenario would be a depeg which would be good if you borrowed USDT and sold it for something else as you would be basically short USDT.
Not so good if you are holding USDT that you didn't borrow.

 

[diatessaron]

Just buy if it depegs. Tether mafia is undefeated.

 

[OKboomer]

Freetrade said:
Worst case scenario would be a depeg which would be good if you borrowed USDT and sold it for something else as you would be basically short USDT.
Not so good if you are holding USDT that you didn't borrow.
Click to expand...

Typically when this happens, interest rate spikes, so you end up paying the same or even more in absolute USD terms.

 

[EliasIT]

I'm looking forward to reading about the first time some smaller players have their USDT confiscated or frozen for now, it's mostly theoretical, and there's conflicting information online.

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[cryptofriendly]

OKboomer said:
Typically when this happens, interest rate spikes, so you end up paying the same or even more in absolute USD terms.
Click to expand...

It was spiking in the last week to 16%, now back around 8% (loan interest).
That's per year, even 30% per year are just around 0.09% per day.

Very profitable, even if USDT just drops 10% in a month, you can make 7% after paying interest, that's 84% APY.

 

[polonieth]

USDT (Tether) has the capability to freeze and even invalidate coins through the use of an admin key. So completely defeats the object of crypto.

DAI is the only real choice for a stable coin, no admin keys.

Or pDAI if you fancy a gamble (PLS bag holder here so DYOR)

Last edited: Oct 27, 2024

 

[Houdini]

DAI works well for me after I swapped all my USDT to this crypto.